What is licensing – and do I need a landlord licence to let my property?

Mandatory HMO licensing

The one type of rental property that falls under mandatory licensing conditions across the whole of the UK is a House in Multiple Occupation (HMO).

However, it does depend on the size of the HMO and where it’s located:

England and Wales

Under national licensing regulations, every large HMO – where five or more people forming more than one household live in the property and share toilet, bathroom or kitchen facilities – requires a licence, which is valid for five years.

Key conditions that must be satisfied to gain a licence:

The house is suitable for the number of occupants
The property manager (whether that’s you as the landlord or an agent) is ‘fit and proper’, e.g. doesn’t have a criminal record or hasn’t breached any codes of practice

You must also:

Send the council a copy of the gas safety certificate every year
Install and maintain smoke alarms
Provide the council with safety certificates for electrical appliances, if requested

The council may then add other conditions to your licence, such as requiring you to upgrade facilities.

The fee for a five-year licence can vary greatly between local authorities but tends to range from around £500 to £1,000 – although landlords in London can expect to pay up to 50 per cent more than that. 

Visit GOV.UK for further information.

In England, a licence may also be required for smaller HMOs and other types of rented property, depending on your local authority’s policy. 

Scotland

Every property rented out by at least three unrelated people who share bathroom or toilet and kitchen facilities must have a licence, which lasts for three years.

You must provide the local authority with:

Details about yourself and the property
Copies of the tenancy agreement(s)
The gas safety certificate

As in England and Wales, the council can add other conditions to the licence.

The fee is based on the number of tenants and tends to range from around £200 to £300 per tenant, depending on the local council.

More detailed information is available at the GOV.UK website.

Northern Ireland

Every property which is the main residence of three or more people from more than two households – requires a licence, which is valid for five years.

The licence fee is based on the number of tenants – currently £185 per person.

More information is available at the Belfast City Council website.