Additional HMO licensing in Nottingham

Common questions

What the designation says

The 'Nottingham City Council Designation of an Area for Additional Licensing 2024' came into force on 1 January 2024 and applies CITYWIDE to all areas of Nottingham. It replaces the previous Designation 2019 which came into force on 1 January 2019. The current scheme runs for 5 years from 1 January 2024 . Designation made under section 56 of the Housing Act 2004. Since the General Approval came into force on 23 December 2024, councils may now introduce schemes of any size locally without Secretary of State confirmation, but the existing Nottingham additional designation predates this and was made under the previous approval framework. All non-mandatory licensable HMOs in the city must have an HMO Licence where they are occupied by 3 or more persons living in 2 or more separate households AND where they meet the tests under Section 254 of the Housing Act 2004 (standard test, self-contained flat test, or converted building test). Mandatory HMO licensing (5+ persons) applies separately and continues to apply citywide. Where an HMO falls to be licensed under Nottingham's Additional Licensing Scheme but is also a building registered with the Accreditation Network UK (ANUK) National Code, it is EXEMPT from the requirement to licence under the city scheme. Check ANUK registration at nationalcode.org/nottingham. This exemption is specific to Nottingham and is unusual — most councils do not recognise ANUK registration as a substitute for licensing. Two-part fee structure (Part A on application, Part B on grant). Standard fees apply with discounts for landlords accredited under the Nottingham Rental Standard, DASH Accreditation Services, or Unipol Student Homes. A "less compliant fee" applies where the council has identified previous compliance issues — the less compliant fee is higher AND it supersedes the standard or accredited fee for both Part A and Part B once applied. This is an unusual fee structure that explicitly penalises landlords with prior enforcement history. Verify current fees on the published Housing Licensing Fee Policy April 2025 PDF at nottinghamcity.gov.uk/media/elrnn0f5/ncc-housing-licensing-fee-policy-april-2025.pdf. Comprehensive — including fire safety, gas safety (annual certificate), electrical safety (EICR), amenity standards (rooms sizes, kitchen and bathroom provision per occupant), management standards (anti-social behaviour, waste, written tenancy agreements), and the requirement that the licence holder pass a fit and proper person test. Refer to the Council's published amenities guidance documents and HMO Licensing Handbook April 2025 PDF. Nottingham City Council is BOTH the Local Housing Authority and the Planning Authority. The licensing team and planning department work closely together, but a HMO licence does NOT automatically grant planning permission and vice versa. If you have planning permission to convert from C3 (single dwelling) to C4 (small HMO) you still need a separate HMO licence. Officers will check planning status as part of the licence determination but it does not affect whether the licence is granted. An officer determines the licence by considering the application against the Housing Act 2004 tests including whether management arrangements are satisfactory and the licence holder is fit and proper. Before granting or refusing, the officer serves a proposal on each relevant party giving them 14 days to make representations. Operating an unlicensed HMO is a criminal offence under section 72(1) of the Housing Act 2004. Civil financial penalty up to £40,000 per offence. Unlimited fine on conviction. Rent Repayment Orders for up to 24 MONTHS' rent under the Renters' Rights Act 2025 (note: Nottingham explicitly references the 24-month figure on its tenant-facing pages, this is the strengthened RRO under the 2025 Act). Banning Orders also possible for repeat offenders. Nottingham City Council Property Licensing team via the council licensing portal at nottinghamcity.gov.uk/qualityhousingforall. Section 21 was abolished on 1 May 2026; possession now runs through the amended section 8 grounds. The £40,000 ceiling applies to offences committed on or after 1 May 2026; the £30,000 ceiling still applies to offences committed before that date.

What this means for a landlord

A licence must be in place before the property is let, not applied for afterwards. Operating unlicensed in a designated area is a criminal offence: a civil penalty of up to £40,000 per offence and a rent repayment order of up to two years' rent. Both maxima apply to conduct on or after 1 May 2026; before that date they were £30,000 and twelve months. Section 21 was abolished on 1 May 2026 and possession now runs through the amended section 8 grounds. Mandatory HMO licensing applies separately and everywhere, wherever a property is let to five or more people forming two or more households.

Nottingham's own licensing page →