HMO licence cost and fees

GOV.UK directs applicants to contact their council to apply and to pay the fee the council sets (GOV.UK — HMO licence). Published fee schedules change. Any pound figure you saw on a forum, an old PDF, or another city’s site is not confirmed for your property until you read your own authority’s current page.

Fee structures vary, but common line items include:

• Application / grant fee for a new HMO licence
• Renewal fee before expiry (licences are valid for a maximum of five years per GOV.UK)
• Variation fees if occupancy or layout changes
• Extra charges for incomplete applications, missed appointments or enforcement-related work (wording is local)

Some authorities split “Part A / Part B” style fees (application vs grant). Others publish one figure. Purpose-built student blocks, large licensed HMOs and additional-licensing designations can sit on different rows of the same table — read the row that matches your case.

Fee income must relate to the authority’s licensing costs under the Housing Act 2004 framework (Housing Act 2004). Inspection intensity, IT, enforcement backlog and scheme design all differ. Comparing Birmingham to a small district without adjusting for scheme type is meaningless.

Refund policies are local. Some councils refund part of a fee if an application is refused or withdrawn; others do not. Read the fee statement before you pay. AgentHMO cannot predict your refund outcome.

• Mandatory large HMO licensing (England/Wales definition on GOV.UK)
• Additional HMO licensing designated by the council for smaller HMOs
• Selective licensing of the wider private rented stock (selective licensing schemes)

A property can face HMO licensing, selective licensing, or in some areas careful checks that the right scheme is the one you are paying for. Scheme comparison: selective vs mandatory.

Buyers ask whether a current licence exists and what it cost to obtain or renew. Put the licence and fee receipt in the pack (documents checklist). Licence transfer is not automatic (licence transfer rules). Valuation conversations still need rent evidence (valuation request).

Scotland uses a different HMO licensing regime via local councils (mygov.scot — HMO licence). Fees are council-specific there too. See licensing in Scotland.

1. Confirm whether you need a licence (Do I need an HMO licence?).
2. Open your council’s current HMO licensing fees page.
3. Match property size / occupancy / scheme type to the correct row.
4. Ask the licensing team if the PDF and the online form disagree.
5. Diary renewal before expiry — late operation without a licence risks enforcement (GOV.UK — unlimited fine language for unlicensed HMOs).

• GOV.UK — HMO licence
• Housing Act 2004
• Your local authority’s published fee schedule (authoritative for pounds)