Additional HMO licensing in Sandwell

What the designation says

Sandwell Metropolitan Borough Council operates a borough-wide Additional HMO Licensing Scheme that came into force on 1 October 2024 and runs for five years until 30 September 2029. The borough-wide scheme replaced an earlier, ward-restricted scheme that had operated in West Bromwich Central (also referenced as the Greets Green and Lyng / West Bromwich area) from 1 July 2022, which was formally revoked on 30 September 2024 under section 60 of the Housing Act 2004 to make way for the borough-wide expansion. The new scheme was approved by Cabinet in June 2024 following a 10-week public consultation that ran from 8 January to 18 March 2024. The council provided a 3-month grace period from 1 October to 31 December 2024 to allow landlords to submit applications, with formal enforcement activity for unlicensed premises commencing from 1 January 2025. The scheme covers all small Houses in Multiple Occupation in the borough — that is, properties occupied by 3 or 4 persons forming two or more households who share kitchen, bathroom or toilet facilities (HMOs as defined by section 254 of the Housing Act 2004) — and also explicitly INCLUDES section 257 HMOs (buildings converted into self-contained flats where the conversion did not comply with the Building Regulations in force at the time and still does not comply). The application fee for the additional HMO licence is £1,021 per property (correct as of July 2025). Sandwell's fees are uplifted on 1 April each year. The scheme was justified on the basis of significant evidence of poor management, antisocial behaviour, fly-tipping, harassment, illegal eviction, modern slavery linked to private rented sector properties, abuse of Special Exempted Housing Benefit in supported housing, and general property condition concerns — particularly in West Bromwich and other areas with high private rented sector concentration. Before being granted a licence, landlords (and any proposed manager) must pass a fit-and-proper-person test. Where a property is operating as an unlicensed HMO, the council issues a 28-day notice of intention to issue a civil penalty (up to £30,000) before any final demand and 28-day appeal period. Operating an unlicensed HMO also exposes the landlord to prosecution with an unlimited fine, Rent Repayment Orders of up to 12 months rent, and an inability to serve a section 21 notice while the property remains unlicensed.

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 £30,000 per offence, a rent repayment order of up to twelve months' rent, and a section 21 notice that cannot be served while the property is unlicensed. Mandatory HMO licensing applies separately and everywhere, wherever a property is let to five or more people forming two or more households.

Sandwell's own licensing page →