Do I need a property licence? A step-by-step check for landlords

· 7 min read

Most landlords who let unlicensed did not decide to. They asked the wrong question — "is my property an HMO?" — got a correct answer of "no", and stopped. Selective licensing does not care whether it is an HMO.

Here are the questions in the order that gets the right answer.

Step 1 — Is it let to five or more people in two or more households?

Count people, not bedrooms, and count households, not tenancies. A household is a single person, or members of the same family living together. Five friends sharing is five households. A couple plus three friends is four.

If yes, and they share a kitchen, bathroom or toilet, this is a mandatory HMO. It needs a licence in every council in England and Wales. No designation required, nothing to check locally. Go and apply.

Step 2 — Is it a smaller HMO?

Three or four people forming two or more households, sharing facilities, is still an HMO. It is below the mandatory threshold, so it needs a licence only if the council has designated an additional licensing scheme under section 56.

We track 64 councils with such a designation. Check yours on the council licensing index.

Step 3 — Is it an ordinary private let?

A family, a couple, a single tenant. No HMO in sight. This is where selective licensing applies, if the council has designated the area under section 80 — and 60 of the 318 councils we track have.

Designations are drawn by ward and sometimes by street, so a council-level yes is not an address-level yes. Check the council's designation map for the specific property. We link to it from every council page.

Step 4 — Does an exemption apply?

The main ones, none of which are as broad as they sound:

  • Already licensed under Part 2. A property with a mandatory or additional HMO licence is outside selective licensing.
  • Registered social landlords. Tenancies granted by them are generally excluded.
  • Long leases. Leases over a certain length are not "let" in the relevant sense.
  • Resident landlords. Where the landlord lives in the property with the occupiers, scope narrows considerably.
  • Genuine holiday lets and some business tenancies. Genuine being the operative word.

"My tenant has been there fifteen years", "it is managed by an agent" and "the property is in good condition" are not exemptions. The duty attaches to the property in the area, and the licence holder is whoever manages or controls it.

Step 5 — Confirm it, and keep the confirmation

Check the position against the council's own designation, not a summary. Council websites are frequently behind their own instruments: we have found councils publishing a commencement date that their designation notice contradicts, and we record both when that happens.

If you cannot get a clear answer, ask in writing and keep the reply. A dated written answer from the council is the best evidence you will get that you asked.

Start here

Check your council in one click. Our council licensing index covers all 318 councils in England and Wales, with the designated areas, the dates and the source for each. Or run the free compliance check — five questions, no sign-up — and it will tell you which duties apply to your property, licensing included.

If the answer is yes and you have already let

Apply immediately. An application in progress is not a defence to the offence, but a council deciding how to respond will treat a landlord who came forward differently from one it had to find. The exposure is set out in penalties for letting without a licence, and it is substantial: up to £30,000 as a civil penalty, plus a rent repayment order of up to twelve months' rent.

Common questions

Do I need a licence to rent out a single house to one family?

Possibly. A single-family let needs no HMO licence, but selective licensing under section 80 of the Housing Act 2004 covers ordinary private lets in a designated area — and 60 of the 318 councils we track operate one. Whether it applies depends on the specific address, because designations are drawn by ward and sometimes by street.

How do I check if my property is in a selective licensing area?

Find your council on the Landlord HQ council licensing index, which records the designated areas and dates where we hold them, then confirm the specific address against the council's own designation map. A council-level answer is a starting point: designations frequently cover only part of a council's area.

Does my letting agent need the licence, or do I?

The licence is held by the person having control of, or managing, the property — which may be the landlord or the agent depending on the arrangement. It is a matter of fact rather than of contract, and the offence can be committed by either. Agreeing that the agent will deal with it does not transfer the liability on its own.

Is applying for a licence a defence if I have already been letting unlicensed?

Having a valid application pending can be relevant: the Housing Act 2004 provides a defence of reasonable excuse, and a duly made application is treated differently from no application. It does not undo the earlier period of unlicensed letting, and a rent repayment order can still be sought for that period.

Sources

Figures about our own council records are computed when this page is built, so they cannot drift from the database. Information tool, not legal advice.

Read next

Selective licensing explained: what it is, who needs it, and how to check7 min readAdditional HMO licensing explained: the scheme that catches small shared houses6 min readPenalties for letting without a licence: £30,000 fines, rent repayment and banning orders8 min read

Check a specific property. Look up your council's licensing position across all 318 councils, or run the free compliance check — five questions, no sign-up.