Property Licensing: What Landlords Need to Comply

Licensing rules can be confusing. Find out why local authorities have introduced licenses and what you must do to avoid hefty fines!

Prefer to watch? Press play on the video above for a quick overview or keep reading for the complete guide.

Avoid Fines by Understanding Your Obligations

Letting without the correct license could cost you up to £30,000. With rules varying by borough, licensing has become one of the most confusing compliance areas for landlords. This guide breaks down the essentials.

Why Councils Require Licenses

Local councils introduce licensing to reduce antisocial behaviour and raise rental safety standards. Initially adopted in parts of London, licensing is now spreading across the UK.

The Three Types of Property License

1. Mandatory License – Applies nationwide to large HMOs (5+ tenants from 2+ households).
2. Additional License – Chosen by councils, applies to smaller HMOs (3+ tenants from 2+ households).
3. Selective License – Applies to all rental properties in specific areas, regardless of the number of tenants.

How ‘Household’ is Defined

Licensing is based on households, not just tenant numbers:

- One person = one household

- A family = one household

- A couple and a friend = two households

- Three friends = three households

Can You Let While Waiting for a License?

Yes. As long as the application is submitted, you can let the property before it’s approved.

We’ll Help You Stay Compliant

Our lettings experts track all local licensing changes and can confirm if your property is affected. If it is, we’ll help you apply and stay fully compliant quickly and correctly.

Speak to our lettings specialists today and start investing smarter, to live better.