Additional HMO Licensing: A Guide for Letting Agents, Property Managers and Landlords

Many letting agents and property managers are familiar with Mandatory HMO Licensing, but fewer realise that some local authorities require licences for smaller Houses in Multiple Occupation (HMOs) through Additional HMO Licensing schemes.

Because these schemes are introduced by individual councils, a property that does not require a mandatory HMO licence in one area may need an additional licence in another. Understanding the rules is essential for letting agents, property managers and landlords to remain compliant and avoid significant penalties.

What Is Additional HMO Licensing?

Additional HMO Licensing is a local authority licensing scheme introduced under the Housing Act 2004. It allows councils to extend HMO licensing to properties that fall outside the national Mandatory HMO Licensing requirements.

Councils can introduce these schemes where they believe there are problems with housing conditions, property management or tenant safety within a particular area.

Unlike Mandatory HMO Licensing, which applies across England, Additional HMO Licensing is only introduced where a local authority has formally designated a licensing area.

Which Properties Need an Additional HMO Licence?

The exact requirements vary between councils, but Additional HMO Licensing commonly applies to smaller HMOs occupied by:

• Three or four tenants.
• Two or more separate households.
• Tenants who share facilities such as kitchens, bathrooms or toilets.

Some councils may apply different occupancy thresholds or include particular property types within their designation. Always check the specific licensing rules for the local authority where the property is located.

How Does Additional HMO Licensing Differ from Mandatory HMO Licensing?

Although both schemes regulate Houses in Multiple Occupation, they apply to different types of properties.

For more information about national HMO licensing rules, read our guide to Licensing of Houses in Multiple Occupation (HMO).

Why Do Councils Introduce Additional Licensing?

Local authorities can introduce Additional Licensing schemes where evidence shows there are issues within privately rented accommodation, including:

• Poor housing conditions.
• Inadequate property management.
• Anti-social behaviour linked to HMOs.
• High concentrations of shared accommodation.
• Concerns about tenant safety.

The aim is to improve housing standards while ensuring letting agents, property managers and landlords maintain their properties to an acceptable standard.

Licence Conditions

Although each council sets its own licence conditions, letting agents, property managers and landlords are commonly required to:

• Maintain safe and habitable accommodation.
• Keep fire safety measures in good working order.
• Ensure electrical and gas safety requirements are met.
• Provide adequate waste disposal arrangements.
• Maintain communal areas.
• Address repairs promptly.
• Comply with occupancy limits.
• Respond to requests from the local authority.

Failure to comply with licence conditions may result in enforcement action, financial penalties or the revocation of the licence.

How to Check if a Property Requires an Additional HMO Licence

Because every local authority operates differently, there is no national register covering all Additional Licensing schemes.

Before marketing or managing an HMO, letting agents, property managers and landlords should:

• Check the local authority’s property licensing register.
• Review current licensing designations.
• Confirm whether the property falls within a designated area.
• Verify occupancy levels and household arrangements.
• Apply for a licence before the property is occupied, where required.

Licensing schemes are regularly reviewed and updated, so it is good practice to check for changes whenever you take on a new property.

Penalties for Non-Compliance

Managing a property that requires an Additional HMO Licence without obtaining one can have serious consequences.

Depending on the circumstances, local authorities may issue:

• Civil penalties of up to £30,000.
• Rent Repayment Orders.
• Criminal prosecution for serious offences.
• Restrictions on serving a valid Section 8 possession notice where licensing requirements have not been met.

These penalties can affect both letting agents, property managers and landlords responsible for the property’s compliance.

How No Letting Go Supports Property Compliance

While No Letting Go does not arrange HMO licences, we help letting agents and property managers demonstrate professional property management throughout the tenancy.

Our nationwide services include:

• Property Inventories.
• Check-In Reports.
• Mid-Term Inspections.
• Check-Out Reports.
• Photographic property reporting.
• Digital property records.

Regular inspections and accurate reporting help identify maintenance issues early, support compliance with licence conditions and provide a clear audit trail throughout the tenancy.

Frequently Asked Questions

Is Additional HMO Licensing the same as Mandatory HMO Licensing?

No. Mandatory HMO Licensing is a national requirement for certain larger HMOs. Additional HMO Licensing is introduced by individual councils and often applies to smaller shared properties.

Do all councils operate Additional HMO Licensing?

No. Only local authorities that have introduced an Additional Licensing designation require these licences. Requirements vary across England.

Does a property licence transfer to a new owner?

No. Property licences are generally issued to the licence holder. If ownership or management changes, a new application may be required. Always check the local authority’s guidance.

How long does an Additional HMO Licence last?

Most licences are granted for up to five years, although local authorities may issue shorter licences depending on the circumstances.

Can a letting agent apply on behalf of a landlord?

Many letting agents manage licence applications and ongoing compliance on behalf of landlords, although the legal responsibilities remain with the licence holder.

Related Guides

To learn more about property licensing requirements, read our related guides:

• Licensing of Houses in Multiple Occupation (HMO) – Understanding Mandatory HMO Licensing.
• Selective Licensing in the Private Rented Sector – When standard rental properties require a licence.
• Property Licensing Requirements – An overview of licensing schemes affecting letting agents, property managers and landlords.

For letting agents and property managers handling licensed properties, No Letting Go provides professional inventory, inspection and reporting services that help maintain accurate property records and support ongoing compliance throughout the tenancy.