Letting Out a Property: Do I Need a Landlord License (UK)? 

Understand UK landlord licensing: mandatory HMO, additional, and selective schemes. Learn costs, how to check, and what happens if you don't comply.

Landlord Tenant Law

If you're thinking about letting out a property in England or Wales, you’ll likely (and hopefully) have considered the question “Do I need a landlord licence?”. UK laws on this subject are somewhat nuanced, and you might well need one, but it depends on the type of property and where your property sits. 

Some licences are standard. For example, HMOs with five or more sharers. Others, like selective licensing, are pushed through in local areas dealing with poor housing conditions or anti-social behaviour. In Scotland and Northern Ireland, all rentals require some form of landlord registration or licence.

We’ve tried to make this simple for you by explaining the license types that apply to different situations, how much they cost, and what happens if you skip this step in 2025. 

What Type of Landlord Licence Do You Need?

So, what type of landlord license do you need? Unfortunately, there’s no single UK-wide system, and so different councils set different rules. Most landlord licences fall into one of three categories:

1. Mandatory HMO Licensing

If you let out a property to five or more unrelated tenants who share facilities, you likely need to apply for an HMO (House in Multiple Occupation) licence. This has been a legal requirement since 2006 in both Wales and England. 

Some key points:

  • Applies to any property with five+ sharers forming two or more households.
  • You’ll need to meet specific HMO standards: minimum room sizes/fire safety measures, etc.
  • License fees vary but usually land between £600 and £1,200 (this depends on location and property size). 
  • Licenses generally last for 5 years, but they can be shorter if the council has specific concerns.

Related: What Is An HMO And Do You Need An HMO Licence?

2. Additional Licensing

Some councils require additional HMO licensing for smaller shared houses, e.g., properties with three or four tenants forming more than one household.

This applies even if your property doesn’t meet the national HMO threshold of five or more tenants. Councils like Oxford, Nottingham, and parts of London have rolled out additional licensing schemes to improve rental standards.

3. Selective Licensing

Under selective licensing, local councils can target specific areas where all privately rented homes must be licensed. It’s usually brought in to tackle ongoing issues like poor property conditions or antisocial behaviour in high-density neighbourhoods.

If your rental is in a council-designated area - like parts of Newham, Manchester, or Liverpool - there’s a good chance you’ll need a selective licence before letting it out.

Costs typically fall between £400 and £900 per property, depending on the council. Skip the licence, and you could face fines of up to £30,000, or even be ordered to repay up to 12 months of rent to your tenant through a Rent Repayment Order.

Related: 6 Key Challenges For Landlords Managing HMOs

How to Check If You Need a Landlord Licence (UK)

Because licensing requirements vary by council, the best way to find out if your property needs a landlord licence is to check with your local authority. Most councils now have online postcode tools or housing portals that allow you to confirm whether your property falls into a mandatory, additional, or selective licensing scheme.

Here’s how to go about it:

  1. Visit your local council website. Look for the “Housing” or “Private Renting” section.
  2. Search for landlord licensing. Most have dedicated pages explaining the schemes in place.
  3. Use the postcode checker. Many councils (like Liverpool, Newham, or Nottingham) have postcode tools that instantly tell you if a licence is required.
  4. Download the licensing criteria. This outlines exactly which property types fall under each scheme and what’s expected of you.

If you own property in multiple local authority areas, you’ll need to repeat this process for each one. There’s no centralised UK-wide register (yet).

What Happens If You Don’t Get a Landlord Licence?

Letting out a property without the correct licence is a criminal offence and quite simply, not a good idea. 

Councils have the power to issue civil penalties of up to £30,000 per unlicensed property, and to make matters worse, these fines don’t require a court hearing. Typically, the landlord is served a notice and given a window of time to appeal or pay. 

Then there’s the risk of a Rent Repayment Order (RRO), which allows tenants to claim back up to 12 months’ rent if the property was rented illegally. That includes rent paid through housing benefit or universal credit. If a tenant files a claim successfully, the landlord in question needs to repay the total amount, regardless of whether they’ve already spent it.

A 2024 report from the NRLA highlighted that over £13 million in fines were issued to landlords for unlicensed lettings between 2021 and 2023. Though not all of these fines were enforced. 

How to Apply for a Landlord Licence

Once you’ve confirmed that your property needs a licence, you’ll need to apply through your local authority.

Here’s what you’ll typically need:

You’ll also need to pass a “fit and proper person” test. This sounds rather crude, but it essentially checks whether you’ve previously been convicted of housing offences or financial crimes. Typically, a clean record and proof of responsible management will be enough.

Processing times can range from a few weeks to several months, so don’t leave it until the last minute. This is especially the case if your property is already occupied.

Staying Ahead of Landlord Licensing in 2025

So, do you need a landlord licence in the UK? Quite possibly, especially with the growing spread of selective licensing across England and Wales. If you don’t get the proper license, it can cost you thousands while also making it harder to manage or evict tenants legally.

On a more positive note, once you’ve figured out your responsibilities and gathered the right paperwork, staying compliant is very manageable, particularly with the right systems in place.

Landlord Studio helps landlords keep on top of licensing and compliance with tools like document storage for EPCs, safety certs, and tenancy agreements, and automated reminders for licence renewals and inspections. It also manages several financial functions, such as expense tracking and rent tracking. 

No matter the type of portfolio you manage, having the right digital tools gives you confidence that you’re staying compliant.

Create your free Landlord Studio account today and make landlord licensing easier to manage than ever.