A property licence is a legal requirement that demonstrates the property is suitable for occupation and managed to an acceptable standard. If you are found to be renting your property without a licence when you need one, both the landlord and potentially the managing agent can be fined, subjected to Rent Repayment Orders, Banning Orders, and other enforcement actions.
What is property licensing?
If you let a property in England, you may need a licence from your local council before you can legally rent it out. The licensing system was introduced to improve standards in the private rental sector and to make sure landlords meet minimum safety and management requirements. It is not a national centralised register. Councils introduce their own schemes under national law and they are doing so in increasing numbers.
There are three main categories of property licence in England.
Applies to most Houses in Multiple Occupation (HMOs)usually where 5 or more people from at least 2 households share facilities such as kitchens or bathrooms.
A council can require smaller HMOs (e.g. 3-4 people living together in sharing facilities) to be licensed if they consider the area to be higher risk.
licensing can apply to all privately rented homes within certain designated areas, regardless of property type, and is often used as a tool to address poor housing standards or anti-social behaviour. It can be borough-wide, ward-wide or down to specific streets. Some local authorities may combine types in overlapping schemes.
Each licence comes with conditions that landlords must meet. These may include carrying out regular safety checks such as gas and electrical inspections, maintaining proper management standards, and keeping detailed records.
How many licenses are there?
There are estimated to be nearly 400,000 licensed properties in England. The top 50 councils earn over £320m from licence revenue, with the largest council (Southwark) earning over £23m from licensing. Lambeth has the highest licensing fee at £2,530 per property.
Why is the number of licenses increasing rapidly?
The number of licences has grown rapidly due to the regulatory change introduced from 23 December 2024. This allowed councils in England to no longer seek Secretary of State approval before introducing selective licensing schemes.
More councils are also using these discretionary powers to target property conditions and anti-social behaviour issues.
As a result, a record 49 new licensing schemes were introduced in 2025 compared to 23 in 2024. 2026 is expected to exceed 2025.
How long do Licences last?
Licenses usually last for five years, although properties with evidence of poor management or other housing related problems may be given 1or 3 year licences. This can vary for different local authorities.
How to get a licence
Contact your council's housing department or visit their website for application details. You'll typically need to submit an application form, provide property and tenant information, pay a fee, and potentially undergo property inspections.
The council will review your application to ensure you meet their standards before granting the licence. The process and requirements may vary slightly between different local authorities.
Licensing applications often require:
Be prepared as missing documents can lead to delays and danger of non-compliance.
Alternatively, you can ask Hello Neighbour to do it for you!
Who should apply for a licence?
The person responsible for applying for a property licence is the landlord or, in some cases, the property manager or agent acting on their behalf.
UK Licence Holder Requirement
What are the penalties for Not Having a Licence?
Failing to obtain the correct Selective, Additional, or Mandatory HMO licence for a rental property can lead to serious financial and legal consequences for both landlords and letting agents.
If a property that requires a licence is rented out without one, the landlord or managing agent could face:
How can Hello Neighbour help?
Tracking licensing requirements across different councils can feel overwhelming, especially with rules changing so quickly. At Hello Neighbour, we partner with Kamma to provide automated licensing compliance checks.
This service alerts you instantly if licensing rules apply to your property and provides clear guidance on how to apply for and maintain your licence. It also includes ongoing monitoring so you’ll hear about any new rules that affect you straight away.
For landlords, this removes the need to manually check multiple council websites or worry about missing important updates. Even if you prefer to self-manage your property, these tools give you confidence that you won’t fall foul of changing rules.
Neighbourly Takeaways
The number of licenses are likely to expanding quickly in 2026, particularly for selective licensing.
Councils are becoming stricter, issuing significant penalties, and requiring landlords to do more than submit a single application. Increasingly, they are linking licensing to other safety checks, which means landlords must stay on top of multiple requirements at once.
Hello Neighbour’s licensing check service makes this easier by flagging when your property needs a licence, guiding you through the application, and monitoring everything over time.
Licensing is about more than just paperwork. It plays a role in protecting tenants, supporting better housing standards, and safeguarding your investment. In today’s evolving rental market, staying compliant is a key part of being a responsible landlord.
FAQs
Do I need a licence if I only rent to one family?
Yes, you might. If your property is in a selective licensing area, the rules can apply to all rentals, not just HMOs.
Can I let my property while the licence application is being processed?
Usually yes, as long as the application has been submitted. Always confirm with your local council.
How much does a licence cost?
It depends on the council. Typical costs range between £500 and £1,000 for a five-year licence, with higher fees for HMOs.
Do I need a separate licence for each property?
Yes. Some councils allow portfolio licences, but this is rare.