Landlord Compliance

Landlord Licensing:
HMO, Selective & Additional

Landlord licensing in England and Wales covers four distinct schemes — mandatory HMO licensing, additional licensing, selective licensing, and Rent Smart Wales. Operating an unlicensed property is a criminal offence carrying unlimited fines. PDA Law helps landlords understand which schemes apply and how to comply.

Speak to a Landlord Solicitor01244 757 352

The Four Landlord Licensing Schemes

Different licensing schemes apply depending on your property type, location, and whether you are in England or Wales. More than one scheme may apply to the same property.

Mandatory HMO Licensing

England & Wales

Applies to all HMOs with 5 or more people forming 2 or more separate households. Since October 2018, the 3-storey requirement was removed in England.

Trigger

5+ occupiers in 2+ households

Authority

Local housing authority

Duration

5 years

Penalty

Unlimited fine / £30,000 civil penalty

Additional Licensing

Designated areas only

Extends HMO licensing to smaller properties in areas where the local authority has designated an additional licensing scheme.

Trigger

Smaller HMOs (3–4 occupiers) in designated areas

Authority

Local housing authority

Duration

5 years

Penalty

Unlimited fine / £30,000 civil penalty

Selective Licensing

Designated areas only

Applies to all private rented properties in a designated area, regardless of property type or number of occupiers.

Trigger

All private rented properties in designated area

Authority

Local housing authority

Duration

5 years

Penalty

Unlimited fine / £30,000 civil penalty

Rent Smart Wales

Wales only

Mandatory registration for all landlords with Welsh properties. Self-managing landlords must also obtain a licence.

Trigger

All landlords with Welsh properties

Authority

Rent Smart Wales

Duration

5 years

Penalty

Criminal offence — unlimited fine

Mandatory HMO Licensing — What You Need to Know

Mandatory HMO licensing applies to properties occupied by 5 or more people forming 2 or more separate households. Since October 2018, the previous requirement for the property to be at least 3 storeys high was removed in England — mandatory licensing now applies to all qualifying HMOs regardless of the number of storeys.

To obtain an HMO licence, you must apply to the local housing authority for the area where the property is located. The authority will assess whether you are a fit and proper person to hold a licence and whether the property meets the required standards.

HMO Licence Conditions

HMO licences are granted subject to conditions. Standard conditions typically include:

  • Maximum number of occupiers permitted
  • Minimum room sizes (following 2018 regulations)
  • Provision of adequate kitchen and bathroom facilities
  • Annual gas safety certificate
  • Electrical Installation Condition Report every 5 years
  • Smoke and carbon monoxide alarms on every floor
  • Fire safety measures including fire doors and escape routes
  • Compliance with HMO Management Regulations 2006
Full HMO Licensing Guide

Selective Licensing — Is Your Area Designated?

Selective licensing schemes are introduced by local authorities and can cover any private rented property in a designated area — not just HMOs. If your property is in a selective licensing area, you must obtain a licence even if it is a standard single-household tenancy.

Local authorities must consult before introducing a selective licensing scheme and obtain Secretary of State approval for schemes covering more than 20% of their area. Schemes must be reviewed every 5 years.

How to Check if Your Property is in a Designated Area

Contact your local housing authority or check their website. Many councils publish interactive maps showing selective and additional licensing areas. PDA Law can also advise on whether a licensing scheme applies to your property.

Consequences of Operating Without a Licence

Criminal prosecution: Unlimited fine on conviction in the magistrates' court.
Civil penalty: Up to £30,000 as an alternative to prosecution.
Rent repayment order: Tenants can apply to the First-tier Tribunal to reclaim up to 12 months' rent.
Rogue Landlord Database: Inclusion on the national database, accessible by local authorities.
Possession restrictions: Cannot rely on certain Section 8 grounds while unlicensed.

New: PRS Database (England)

The Renters' Rights Act 2026 introduces a new mandatory Private Rented Sector (PRS) Database for all landlords in England. This is separate from and in addition to existing licensing requirements.

  • All landlords must register on the PRS Database
  • All rental properties must be registered
  • Failure to register is a criminal offence
  • Does NOT replace HMO or selective licensing
  • Commencement date to be confirmed
Landlord Registration Guide

Wales: Rent Smart Wales

In Wales, all landlords with rental property must register with Rent Smart Wales. Landlords who manage their own properties must also obtain a licence. The scheme has been mandatory since 2015.

Registration: Required for all landlords with Welsh properties
Licence: Required for self-managing landlords
Renewal: Every 5 years
Training: Mandatory training for licence holders
Penalty: Criminal offence — unlimited fine
Wales Landlord Services

Frequently Asked Questions

What is mandatory HMO licensing?
Mandatory HMO (House in Multiple Occupation) licensing applies to properties in England and Wales that are occupied by 5 or more people forming 2 or more separate households, and which are at least 3 storeys high. Since October 2018, the 3-storey requirement was removed for England — mandatory licensing now applies to all HMOs with 5 or more occupiers in 2 or more households, regardless of the number of storeys.
What is selective licensing?
Selective licensing is a scheme introduced by a local authority under Part 3 of the Housing Act 2004. It requires all private landlords in a designated area to obtain a licence, regardless of the property type or number of occupiers. Local authorities can designate areas for selective licensing where there are problems with low housing demand, anti-social behaviour, poor property conditions, high levels of migration, or high levels of deprivation.
What is additional licensing?
Additional licensing is a scheme introduced by a local authority under Part 2 of the Housing Act 2004. It extends HMO licensing requirements beyond the mandatory scheme to cover smaller HMOs — for example, properties with 3 or 4 occupiers in 2 or more households. Local authorities can designate areas for additional licensing where a significant proportion of HMOs are being managed ineffectively.
What are the penalties for operating an unlicensed property?
Operating an unlicensed HMO or property in a selective/additional licensing area is a criminal offence. Landlords can face: unlimited fines on conviction; a civil penalty of up to £30,000 as an alternative to prosecution; a rent repayment order (tenants can reclaim up to 12 months' rent); and inclusion on the Rogue Landlord Database. Landlords cannot serve a valid Section 21 notice (now abolished) or rely on certain Section 8 grounds while a property is unlicensed.
How do I apply for an HMO licence?
HMO licence applications are made to the local housing authority for the area where the property is located. You will need to provide: details of the property and its layout; details of all occupiers; details of the licence holder and any managing agent; evidence of compliance with HMO management regulations (fire safety, gas safety, electrical safety, etc.); and payment of the licence fee. Licences are typically granted for 5 years.
What is Rent Smart Wales?
Rent Smart Wales is the mandatory landlord registration and licensing scheme for landlords and letting agents operating in Wales. All landlords who own rental property in Wales must register with Rent Smart Wales. Landlords who manage their own properties must also obtain a licence. Failure to register or obtain a licence is a criminal offence. Licences must be renewed every 5 years.
Does the new PRS Database replace landlord licensing?
No. The Private Rented Sector (PRS) Database introduced by the Renters' Rights Act 2026 is a separate national register for all landlords and properties in England. It does not replace HMO licensing, selective licensing, or additional licensing — these schemes continue to operate alongside the new database. Landlords must comply with all applicable licensing requirements in addition to registering on the PRS Database.

Need Help with Landlord Licensing?

PDA Law's landlord solicitors advise on all licensing requirements — HMO, selective, additional and Rent Smart Wales. We can also represent landlords facing enforcement action or rent repayment orders.

Make an Enquiry01244 757 352
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