If you are a landlord in the UK, particularly one who’s interested in HMOs (House in Multiple Occupation), it’s likely that you’ve come across mandatory HMO licensing. If you have, you’ll know that this license is a legal requirement for certain types of HMOs in the UK. However, some local councils operate lesser-known additional HMO licensing schemes.
Given that every council in the UK has its own rules and regulations, we get that it can be a pain understanding all the key differences between them, particularly when you’re looking for the best investment property. In this guide, we’ll go into more detail on additional HMO licensing as well as which areas in the UK enforce it.
What is an additional HMO license?
Additional HMO licensing is the name given to schemes introduced by local councils to cover HMOs that fall out of the scope of mandatory HMO licensing. Under the Housing Act 2004, a council has the power to implement additional licensing if it believes there is a need to control the number of small HMOs (i.e. those under 5 tenants) in the area, perhaps due to oversaturation or due to poor management.
Simply put, an additional HMO license may be required even if your HMO doesn’t meet the national criteria for the mandatory HMO license. It’s a discretionary scheme used to raise standards for HMOs in the area. But, if you’re doing everything right, it shouldn’t impact you too much, it’s just another thing to consider.
Why do councils implement additional HMO licensing schemes?
Simply put – some areas are more susceptible to issue with HMO management than others. Councils are often trying to address specific issues that may be prevalent or increasing in their area, which can include things like overcrowding, noise complaints, poor property maintenance and other safety risks.
By implementing additional HMO licensing schemes, councils have more control over small HMOs that traditionally don’t require either a license nor planning permission outside of Article 4 areas. It can also mean landlords meet requirements related to property conditions and give tenants better peace of mind.
Mandatory HMO license vs additional HMO license
The key difference between mandatory vs additional HMO licenses is that mandatory licenses impact all HMOs with 5+ tenants and is a nationwide requirement in all areas. The additional HMO license is only in some areas and affects any property classified as an HMO from 3+ tenants.
| Criteria | Mandatory Licensing | Additional Licensing |
| Legal Basis | Nationwide | Discretionary (council-led) |
| When Required | 5+ tenants from 2+ households sharing facilities | Varies: usually 3+ unrelated tenants, depending on the local council |
| Applies To | Large HMOs only | Small HMOs not covered by mandatory licensing |
| Who Sets It? | National legislation | Local authority |
| Purpose | Regulate large HMOs | Extend oversight to smaller HMOs with known issues |
Selective license vs additional HMO licence
Both additional and selective licensing are introduced at the discretion of local councils, but they apply to different types of rented properties and serve different purposes. The below table makes this clearer:
| Criteria | Additional HMO Licensing | Selective Licensing |
| Legal Basis | Housing Act 2004 – Part 2 | Housing Act 2004 – Part 3 |
| When Required | 3 or more unrelated tenants sharing facilities | Any rented property (including single-family lets) |
| Applies To | Small HMOs not covered by mandatory licensing | All private rented homes in designated areas |
| Who Sets It? | Local authority, following consultation | Local authority, following consultation |
| Purpose | Raise standards in shared accommodation | Improve housing standards in areas with broader issues |
| Licence Conditions | HMO-specific safety, fire precautions, and management rules | General property condition and tenancy management standards |
In summary, additional licensing is intended for small HMOs and shared properties whereas selective licensing is applied to any rented property.
If you’re unsure which type of licence applies to your property, check with your local council.
Section 254 vs Section 257 HMOs
Additional licensing schemes that apply to HMO properties in a given area can also specify the exact type of HMO they are trying to target. There are two types of HMOs that you should look out for when looking at additional licensing schemes.
- Section 254 HMOs: Properties where tenants form two or more separate households and share facilities like kitchens or bathrooms. These HMOs are generally subject to mandatory licensing requirements if they meet the occupancy criteria.
- Section 257 HMOs: Properties that are converting blocks of self-contained flats that do not meet the Building Regulations 1991 standards where less than two thirds of the flats are owner-occupied. These HMOs are often included under additional licensing schemes due to their specific conditions.
UK areas affected by additional HMO licensing
London Boroughs
The London government website has a very useful map which allows you to easily view which areas implement both selective and additional licensing schemes. In the below screenshot, we’ve highlighted just the additional licensing Boroughs.
You can use this map for free here: https://apps.london.gov.uk/rental-property-licensing/
Based on currently available as of August 2025, these are the current London boroughs that require additional HMO licenses. Please note that some boroughs may also require selective licensing in certain areas.
| Borough | Additional Licensing | Details |
| Barking & Dagenham | Yes | Borough-wide, until 2030: View on Borough website |
| Barnet | Yes | Borough-wide, until 2027: View on Borough website |
| Camden | Yes | Borough-wide: View on Borough website |
| Ealing | Yes | Borough-wide: View on Borough website |
| Enfield | Yes | Borough wide, old scheme until August 2025, new scheme until 2030: View on Borough website |
| Greenwich | Yes | Borough wide, until 2028: View on Borough website |
| Hammersmith & Fulham | Yes | Borough-wide, until 2027: View on Borough website |
| Haringey | Yes | Borough-wide, until June 2029: View on Borough website |
| Harrow | Yes | Borough-wide, until 2026: View on Borough website |
| Havering | Yes | Covers Emerson Park, Hylands, Saint Andrews, Cranham, Hacton & Upminster, until 2026: View on Borough website |
| Hounslow | Yes | Borough-wide: View on Borough website |
| Islington | Yes | Borough-wide, until 2026: View on Borough website |
| Kensington & Chelsea | Yes | Borough-wide, until 2028: View on Borough website |
| Lambeth | Yes | Borough-wide, until 2026: View on Borough website |
| Lewisham | Yes | Borough-wide, until 2027: View on Borough website |
| Merton | Yes | Covers Colliers Wood, Cricket Green, Figge’s Marsh, Graveney, Lavender Fields, Longthornton & Pollards Hill: View on Borough website |
| Newham | Yes | Affects most wards, until 2027: View on Borough website |
| Redbridge | Yes | Borough-wide, until 2028: View on Borough website |
| Southwark | Yes | Borough-wide, until 2027: View on Borough website |
| Tower Hamlets | Yes | Borough-wide, until 2029: View on Borough website |
| Waltham Forest | Yes | Borough-wide, until 2030: View on Borough website |
| Westminster | Yes | Borough-wide, until 2026: View on Borough website |
Top cities outside London
Outside of London, there are several other key investment cities that implement additional licensing schemes. These are the top cities that implement these measures, as of August 2025:
| City | Additional Licensing | Details |
| Birmingham | Yes | Affects all wards in the city of Birmingham until 2028. View on council website |
| Nottingham | Yes | Affects all areas of the city, until 2028: View on council website |
| Salford (Greater Manchester) | Yes | Affects the whole of Salford, until 2026: View on council website |
| York | Yes | Affects Clifton, Fishergate, Fulford and Heslington, Guildhall, Heworth, Hull Road, Micklegate, Osbaldwick and Derwent, until 2028: View on council website |
| Sandwell | Yes | Affects entire Sandwell district, until 2028: View on council website |
| Oxford | Yes | Affects the whole of Oxford, until 2026: View on council website |
| Brighton | Yes | Affects the entire area of Brighton & Home: View on council website |
| Southampton | Yes | From Octiober 2025, affecting Banister & Polygon, Bargate, Bassett, Bevois, Freemantle, Portswood, Shirley & Millbrook & Swaythling until 2030: View on council website |
| Portsmouth | Yes | Covers all of Portsmouth, until 2028: View on council website |
| Bristol | Yes | Affects the entire city of Birstol: View on council website |
| Newcastle | Yes | Afects the entire city of Newcastle: View on council website |
| Coventry | Yes | Affects entire area of Coventry, until 2030: View on council website |
Student-dense areas
Given that student-dense areas tend to be popular with HMO investors, we also have a short list of student-dense areas that also have additional HMO licensing, as of August 2025.
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How to apply for an additional HMO license
If you find that your property does fall in an area with an additional licensing scheme, you will usually apply for this similarly to how you might apply for a mandatory HMO license – through the council website.
If you have never done this before, we’ve put together the below handy step by step on guide.
1. Check your property qualifies
You’ll first want to visit your local council website and confirm if your property falls into an additional license area. If it does, you can move on to Step 2.
2. Understand the application requirements
Usually the council will offer licensing conditions, which often includes things like fire safety, amenities standards and property management responsibilities. Local authorities often want to see things like floor plans and tenancy agreements. Make sure you have everything you need before filing your applications.
3. Gather relevant documents
The documents you are likely going to need for an additional HMO license application includes:
- Gas and electrical safety certificates
- Fire safety certificates
- Proof of ownership of the property
- Floor plan of the property
- Tenancy agreements
4. Submit your application online
Most local councils allow you to now submit applications online. Expect to provide personal information as well as your supporting documents. You’ll need to pay the HMO license fee, which often varies depending on the size of the HMO, as well as which council you are dealing with. However, it typically does range from about £500 – £1,200 for a 5-year license.
Additional licensing FAQs
Do I need an additional HMO license if I have a mandatory HMO license?
No. If your property already meets the criteria for a mandatory HMO licence, you do not need to apply for an additional HMO licence as well. The mandatory licence will cover your legal obligations for that property.
However, if you own multiple properties, each one must be assessed individually. A property that falls below the mandatory licensing threshold (e.g. 3 or 4 unrelated tenants) may still require an additional HMO licence, depending on your local council’s rules.
Do I need an additional HMO licence if my council has selective licensing?
Yes, possibly. Selective licensing and additional HMO licensing are separate schemes, and having one does not automatically exempt you from the other.
If your property is an HMO and your local council operates both selective and additional licensing schemes, you may need both licences for the same property.
- Selective licence: covers all private rentals in a designated area.
- Additional HMO licence: applies specifically to smaller HMOs, even if they fall under selective licensing too.
Always check your council’s specific licensing requirements.
