Licensing Types

Additional vs Mandatory vs Selective Licensing

Understanding the different types of HMO and property licensing—and which applies to your property.

The Three Types of Licensing

Mandatory HMO Licensing

Applies nationwide to all HMOs that meet the criteria. No council designation needed.

  • 5 or more people
  • Forming 2 or more households
  • Sharing toilet, bathroom, or kitchen
  • At least one tenant pays rent

Additional HMO Licensing

Council-specific. Councils can extend licensing to smaller HMOs (e.g. 3-4 people) in their area.

  • Only in designated areas
  • Often covers 3+ occupants
  • Examples: Liverpool (city-wide), Manchester (certain wards)
  • Check your council's website

Selective Licensing

All private rented housing in a designated area—not just HMOs.

  • Applies to any rented property in the area
  • Used to tackle poor conditions or anti-social behaviour
  • You may need both HMO and selective licence in some areas

Quick Decision Guide

Does your property have 5+ people in 2+ households sharing facilities?

→ Yes: Mandatory licensing applies. You need a licence.

→ No: Check if additional licensing applies in your area.

Contact your local council to confirm.

Frequently Asked Questions