Private Rental Licensing

Private rental licensing has been in the headlines recently, but it’s not always understood, even by the people to whom it applies. So, what is it all about? 

Firstly, it’s important to realise there are several different types of private rental licensing (we’ll come to those shortly). And secondly, there’s great scope for confusion because some of the licensing is mandatory and uniform across a whole country. Other types of licensing are up to local authorities to introduce, and some have, and some haven’t. 

So, even though licensing is a useful tool for private renters, because it sets a minimum standard for landlords to achieve, the overall picture is complex. Some areas have little licensing, and some have a lot. 

As if that wasn’t complicated enough, Scotland, Wales and Northern Ireland have mandatory landlord registers, but England does not yet have one. Meanwhile, the Renters Rights Act, being implemented in phases over the next 18 months or so, will bring new licensing requirements to England. However, it will not apply to the rest of the UK.

It’s messy and can be immensely difficult to get right. I’ll try to wade through this porridge and explain what applies where.

Types of council rental licences

In England, there are three main types of council licences for private rental accommodation:  

Mandatory House in Multiple Application (HMO) licence

This is a national law and applies to every HMO in every part of the country. An HMO is a single property occupied by five or more people. They form two or more separate households and share amenities such as a kitchen, toilet, or bathroom. 

To conform with licence conditions, the property must have minimum room sizes, valid utility certificates, and appropriate fire safety measures. The penalty for landlords who fail to get a licence can be a fine of up to £30,000.  

Some councils publish lists of HMO licences on their website, but others do not. So, if you’re a concerned tenant, you may have to proactively contact your local authority. 

Additional HMO licence

Local councils can, if they wish, introduce “additional” licensing schemes for smaller HMOs that are not covered by the mandatory scheme. Criteria vary according to councils. Usually, additional licenses apply to single properties occupied by three or four people from two or more households who share facilities.  

Because this is not a mandatory licence, and because few council websites say whether their area has such a scheme, it is almost entirely left to renters and landlords (or their letting agents) to find out whether there is one in force in their area. Again, the penalty for non-compliance is a potential fine of up to £30,000.

Selective licence

This is quite a different form of licensing. It can apply to all privately rented properties (whatever their size or number of tenants) within a designated area. Sometimes this area can be easily recognised, like a council ward. At other times, it can be very specific, such as a set of adjoining streets.   

Only some councils use selective licensing, but those which do tend to restrict it to areas with poor housing conditions or high levels of anti-social behaviour. These issues can sometimes be associated with badly managed private rental properties. Again, the penalty for non-compliance is a potential fine of up to 30,000. As before, it’s left to tenants and landlords to find out whether a selective licence exists in their chosen area.

Renters’ Rights Act

There has been a lot of publicity surrounding this new law, which was passed recently, but with individual measures being phased in throughout 2026. Measures are likely to include a mandatory national landlord register. However, so far, few details have been released, and there is no firm timetable. 

Scotland has a separate licensing system. Most licences (but not all) apply across all of Scotland, in every region and council area. 

Mandatory landlord registration

This is managed by local councils but applies across the country and requires landlords to be ‘fit and proper’ individuals. Councils take into account whether landlords have convictions for fraud or violence or have previous records for breaking housing or discrimination laws. They also check if landlords are known to have failed to deal with issues of anti-social behaviour. The register must also carry letting agent details if the landlord uses one. 

Any landlord who lets out a property without first registering can face a fine of up to £50,000. They can also be given a Rent Penalty Notice, which bans them from charging rent.  

HMO licence

This is also mandatory across Scotland and applies to all single properties with three or more people from two or more households who share facilities. The property must have appropriate certificates for energy efficiency, utility health and safety, and a special Legionella check. Again, there is a potential £50,000 fine for non-compliance.

Short let licence

This applies to all rooms, annexes, or entire properties let out on Airbnb or similar ‘short let’ platforms. It’s national across Scotland and requires the property to meet various standards, including fire, gas, and electrical safety. The property owner needs to pass a ‘fit and proper’ test. The exact type of short let licence includes ‘Secondary Letting’ (when you let a second home or holiday property which is not your principal home), ‘Home Letting’ (when you let out your principal home when you are not there) and a ‘Home Sharing’ licence when you let part of your principal home while you are still present in the rest of the property. 

Wales has its own mandatory system of private rental licensing. 

Mandatory landlord and letting agent registration

This happens through a service called Rent Smart Wales. If a landlord uses an agent, the landlord does not require a licence themselves. However, their agent must apply on their behalf. To be eligible, landlords or agents must pass rigorous online tests and properties must have the appropriate health and safety, energy efficiency and utility licenses.  

Penalties for non-compliance include potentially unlimited fines and rent repayment orders (where landlords must reimburse tenants for their rent). 

Mandatory and local HMO licences

This is similar to the English system, whereby there is a mandatory national HMO licence for a single property occupied by five or more people who form two or more separate households. They share amenities such as a kitchen, toilet, or bathroom. In some areas, local councils have a form of additional HMO licence for a single property occupied by three or four people from two or more households who share facilities.  

It is up to landlords and tenants to find out whether their local councils have an additional HMO scheme. 

Short-let licence

The Welsh Government is considering legislation to introduce short let licensing for home owners who let out a room, annexe or entire property on Airbnb or a similar short let platform. If the legislation passes – which is highly likely – the licensing system will begin in mid-2026. 

Northern Ireland has a separate mandatory system of private rental licensing. 

Mandatory landlord registration

Landlords must register annually, and to be eligible, landlords must pass a ‘fit and proper person’ test. Properties must have the appropriate health and safety, energy efficiency and utility licenses.  

Penalties for non-compliance include potentially unlimited fines and rent repayment orders (where landlords must reimburse tenants for their rent). 

Mandatory HMO licence

This applies to a single property occupied by three or more people who form two or more separate households. They share amenities such as a kitchen, toilet, or bathroom.

Last Updated: November 18th, 2025