HMO Licence Cost Calculator 2026

Properties occupied by 5 or more people forming 2 or more separate households, who share amenities like kitchens or bathrooms. This applies to all England and Wales since 2018 (not just 3+ storey buildings).

Local councils can designate areas where ALL HMOs (including smaller ones with fewer than 5 tenants) need a licence. Check with your local authority.

Fees are set by each local authority and typically range from £200–£2,000+ depending on property size, location, and type. London councils tend to charge more.

Up to 5 years, though councils can grant shorter licences for newer landlords or those with compliance issues.

Operating an unlicensed HMO can result in fines up to £30,000, a rent repayment order (tenants can claim back 12 months' rent), and a banning order.

Adequate room sizes (minimum 6.51m² for one adult sleeping room from October 2018), working smoke/heat/CO detectors, fire doors, adequate bathrooms, and safe electrical/gas systems.

Some councils require all private rented homes in a designated area to be licensed — not just HMOs. This aims to improve housing standards in specific neighbourhoods.

For properties of 3–6 occupants (Use Class C4), permitted development rules apply unless the area has an Article 4 Direction restricting conversion. For 7+ occupants, full planning permission is needed.

Yes — HMO licence fees are an allowable expense against rental income for income tax or corporation tax purposes.

Yes, you can appeal to the First-tier Tribunal (Property Chamber) within 28 days of the council's decision.

No. A new owner must apply for a new licence. The property cannot be transferred with the existing licence.

All HMO licence applicants must pass a Fit and Proper Person check. This includes no serious criminal convictions, no history of housing-related fraud, and no previous licensing banning orders.