HMO licence fees: what an HMO licence costs and why it varies
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HMO licence fees are set by your local council, not by national government, so the cost depends on where the property is [1]. GOV.UK says you'll be "charged a fee which is set by the council", that a licence lasts up to 5 years, and that you need a separate licence for each HMO [1]. To find your fee, look up your council through GOV.UK's HMO licence page and read its current fee schedule. Budget for the fee once per licence period, not once a year, and remember renting out an unlicensed HMO can mean an unlimited fine [1].
Why there's no single HMO licence cost
Licensing is run locally. Each council sets its own fee and publishes its own schedule [1]. That's why searches like "HMO licence cost London", "HMO licence fee Birmingham" or "HMO licence cost Manchester" all return different answers: they are different councils with different charges. In London, each borough sets its own fee.
We won't quote individual council figures here, because fees change and an out-of-date number is worse than none. Use your council's current schedule.
What usually affects an HMO licence fee
Council schedules differ, but these factors commonly change the price. Check your council's schedule for which apply:
- Number of rooms, units or occupants. Many councils charge more for larger HMOs.
- New application or renewal. Some councils price renewals differently.
- Early-bird or late application. Some offer discounts for applying early in a new scheme, or charge more if you apply after you should have.
- Accreditation. Some councils discount fees for landlords in accreditation schemes.
- Licence length. Licences last up to 5 years [1], but councils can grant shorter ones, which affects the cost per year.
- Type of scheme. Mandatory HMO, additional and selective licensing schemes often have different fees.
Is the fee paid in one go?
It depends on the council. Many councils split the fee into two parts: one paid when you apply, covering the processing, and a second paid once the licence is granted, covering the running of the scheme. Check how your council structures payment before you budget.
How to find your council's HMO licence fee
- Go to GOV.UK's HMO licence page and enter the property postcode to find your council [1].
- Open the council's licensing pages and look for a fees or charges document for the current year.
- Check which scheme you fall under: mandatory HMO, additional or selective. See our HMO licence guide.
- Note any discounts or extra charges, and the payment stages.
- Diary the expiry date so the renewal fee doesn't surprise you.
The real cost of an HMO licence: more than the fee
The fee is only part of what licensing costs. To get and keep a licence, GOV.UK says you must [1]:
- make sure the house is suitable for the number of occupants
- be a fit and proper manager (or use one)
- send the council an updated gas safety certificate every year
- install and maintain smoke alarms
- provide safety certificates for electrical appliances when requested
So, alongside the fee, budget for:
| Cost | How often | Guide |
|---|---|---|
| Gas safety certificate | Every 12 months | Gas safety certificate cost |
| EICR | At least every 5 years | EICR certificate cost |
| EPC | Every 10 years, and at band E or above | EPC cost and minimum rating |
| Smoke and CO alarms | Fit and test | Smoke and CO alarms guide |
| Licence conditions | As set by the council | Your licence |
Councils can add conditions such as improving facilities [1]. Those works can cost more than the fee itself.
HMO licence fees and tax
Licence fees for a let property are generally a cost of running the rental business. Ask your accountant how to treat them in your tax return, especially as a licence covers several years.
In Gaffy you can log what each cost was, in pounds, against the property, so the licence fee and the certificates are all in one place when tax time comes round. See simple cost logging.
What happens if you don't pay or don't licence?
Renting out an unlicensed HMO can mean an unlimited fine [1]. Councils also have other enforcement powers, and the Renters' Rights Act expanded rent repayment orders [2]. Compared with those risks, the licence fee is the cheap option.
Keep the licence and its conditions in view
Licence conditions are easy to forget three years in. The annual gas safety certificate has to go to the council [1], and a missed one is a breach.
Gaffy gives each property a document vault. Store the licence and its conditions there, tag your gas safety, EICR and EPC with expiry dates, and Gaffy flags anything expired or expiring soon. Tenants in the HMO all use the same repair link from their phone's browser, with photos, so every report lands in one inbox. See the document vault.
Budgeting for renewal
Because a licence lasts up to 5 years [1], the renewal fee can arrive long after you've forgotten the first one. Note the expiry date when the licence is granted, check whether your council charges less for a renewal made on time, and set a reminder several months ahead so you have time to gather the documents.
Licence fee or no licence: the maths
Councils can take action against unlicensed HMOs, and GOV.UK says the fine can be unlimited [1]. Tenants of unlicensed properties may also be able to apply for rent repayment orders, which the Renters' Rights Act has expanded [2]. Whatever your council charges, it's small compared with those risks. If you think you should already have had a licence, contact the council and apply now rather than waiting to be found.
If you're buying a property to run as an HMO, add the licence fee and any likely licence conditions to your purchase budget, because both arrive before the first rent does.
FAQs
How much is an HMO licence?
It depends on your council, which sets the fee [1]. Check its current fee schedule.
How long does an HMO licence last?
Up to 5 years. You must renew before it runs out [1].
Do I pay the HMO licence fee every year?
Usually the fee covers the licence period, which can be up to 5 years [1]. Check your council's schedule for its payment stages.
Is the HMO licence fee the same across London?
No. Each London borough sets its own fee.
Do I need a separate licence for each HMO?
Yes [1].
What's the fine for an unlicensed HMO?
GOV.UK says it can be unlimited [1].
How does Gaffy help?
Gaffy stores your licence and certificates per property, flags gas safety, EICR and EPC expiry, and logs costs against each property. It's £12 a month for up to 5 properties, plus £4 a month for each extra property, and the first month is free.
Sources
- GOV.UK, House in multiple occupation licence: https://www.gov.uk/house-in-multiple-occupation-licence
- GOV.UK, Renters' Rights Act 2025 implementation roadmap: https://www.gov.uk/government/publications/renters-rights-act-2025-implementation-roadmap/implementing-the-renters-rights-act-2025-our-roadmap-for-reforming-the-private-rented-sector