Mandatory HMO licensing
The national scheme generally applies to qualifying HMOs occupied by five or more people forming two or more households. From 1 October 2018, the former requirement for three or more storeys was removed. A two-storey shared house can therefore need a licence. [1]
Check the statutory building or flat category as well as the headcount. In particular, a self-contained flat within a purpose-built block containing three or more self-contained flats is outside mandatory licensing under the described rules. That does not automatically exclude it from a local additional scheme. [1]
A Section 257 converted block is not brought within mandatory licensing simply because the whole building contains five residents. Its treatment is different from a shared house, although an individual flat may independently meet a licensable HMO definition. [1]
Additional licensing
Councils can designate additional schemes for specified HMOs that fall outside mandatory licensing. Read which properties are included, the geographical coverage and the scheme dates. Do not assume that every additional scheme includes every kind of HMO. [1]
A recent London example is Croydon's borough-wide additional scheme, which began on 25 September 2026 and covers HMOs occupied by three or four people forming two or more households within the scheme's scope. Owners should check the council's full requirements rather than continue using an older five-person-only checklist. [2]
Selective licensing
Selective licensing is not simply another name for small-HMO licensing. It can apply to privately rented accommodation occupied by a single household in a designated area. Croydon's 2026 scheme, for example, covers specified wards and explains its relationship with properties already requiring an HMO licence. [3]
Use the council's address or boundary check and read the exemptions. A property outside mandatory and additional HMO licensing is not necessarily outside selective licensing. [3]
Prepare one consistent property record
For the licensing assessment, identify the actual occupants and households, room sizes, shared facilities, ownership and management arrangements. Compare this with the planning decision and the proposed layout, but do not treat either process as confirmation of the other. [1]
Ask the council for its current application requirements, charges and licence conditions. A licence may limit the residents and households allowed, as well as impose conditions about accommodation and management. There is no single fee appropriate to every London scheme. [1] [2]
Enforcement changed in 2026
From 1 May 2026, the maximum civil penalty for relevant housing offences covered by the updated statutory guidance increased to £40,000. The guidance includes offences involving unlicensed HMOs, selective licensing and licence conditions. The amount in an individual case is not automatically the maximum, and prosecution can be an alternative. [4]
Check compliance before occupation or a change in letting arrangements. For a disputed classification or enforcement notice, obtain advice on the facts and the applicable scheme rather than relying only on the property's marketing description.