Additional HMO licensing
Additional HMO licensing is a discretionary power under section 56 of the Housing Act 2004 that allows local housing authorities in England and Wales to require HMO licences for properties that fall below the threshold for mandatory HMO licensing. Where a council designates an area or its entire district as subject to an additional licensing scheme, all HMOs within scope, typically those occupied by three or four people from two or more households, must be licensed regardless of their size. Unlike mandatory licensing, additional licensing is not a national requirement: it exists only where a specific council has chosen to introduce it.
How it differs from mandatory licensing
Mandatory licensing is a national obligation applying uniformly to any HMO with five or more occupants from two or more households across all of England and Wales. Additional licensing fills the gap below that threshold. A property with three tenants from three households sharing a kitchen is an HMO but falls outside the mandatory scheme. If the council covering that area has introduced an additional licensing scheme, that property requires a licence. If it has not, no HMO licence is needed, though selective licensing may still apply depending on the area and property type.
Which councils operate additional schemes?
There is no national register of additional licensing schemes, and they vary considerably in scope. Some councils designate their entire borough, as Camden, Hammersmith and Fulham, and several other London boroughs have done. Others designate specific wards or streets. Schemes are time-limited and require renewal by the council, so a scheme that applied in an area previously may have lapsed. The only reliable way to confirm whether an additional scheme applies to a specific property is to contact the local housing authority directly or use the council's online licensing checker where one exists.
Penalties for non-compliance
The penalties for operating a property that requires an additional licence without one are identical to those for unlicensed mandatory HMOs: an unlimited fine on criminal conviction, a civil penalty of up to £30,000, and exposure to a rent repayment order of up to 24 months' rent under the Renters' Rights Act 2025 (in force from 1 May 2026). The fact that additional licensing is discretionary rather than mandatory does not reduce the severity of non-compliance once a scheme is in place.
Landlords working with August consistently tell us that additional licensing is the most commonly missed compliance obligation in their portfolios — partly because schemes change, partly because councils do not always notify existing landlords when a new designation takes effect. For a broader overview of how mandatory, additional, and selective licensing interact across England and Wales, see our guide to understanding landlord licensing across England and Wales.
Frequently asked questions
Do I need an additional HMO licence for three tenants?
Only if your local council operates an additional licensing scheme that covers your property. Three tenants from three separate households sharing facilities is an HMO under the Housing Act 2004, but mandatory licensing does not apply below five occupants. Check directly with your local housing authority or use their online licensing tool to confirm.
How long does an additional HMO licence last?
The same as a mandatory licence: a maximum of five years, as set by the Housing Act 2004. The council may grant a shorter licence if there are concerns about the property or management arrangements. Licences must be renewed before expiry and cannot be transferred to a new owner.
Can I be subject to both additional and selective licensing?
Yes. If a property is an HMO with three or four occupants in an area covered by both an additional licensing scheme and a selective licensing designation, both licences may be required. The conditions of each must be met independently.
