Streamlined Property Licensing Services for Landlords

At Yuno, we provide comprehensive property licensing and planning compliance services designed to help landlords and property managers meet their legal obligations with ease and efficiency. Managing property licences and navigating planning regulations can be complex, but our expert team simplifies the process, ensuring you stay compliant while saving time and avoiding costly mistakes.

Failure to have the correct licensing or planning permissions in place can result in fines of up to £30,000, criminal prosecution, a Rent Repayment Order, and even being added to the Rogue Landlord and Agent Database.

What is Property Licensing?

Property licensing is a legal framework established by local authorities to ensure rental properties meet specific standards of safety, health, and management. For landlords and property managers, obtaining the right property licence is essential to ensure compliance with local regulations and avoid penalties.

Licensing requirements vary depending on the type of property, the number of tenants, and the location. These schemes aim to:

• Protect tenants by ensuring properties are safe and well-maintained.
• Hold landlords accountable for managing their properties responsibly.
• Address issues such as overcrowding, poor living conditions, and rogue landlords.

Understanding what a property licence entails and why it’s required is critical for staying on the right side of the law.

Property Licensing and Planning: How They Work Together

In addition to licensing, landlords must also consider whether their rental property requires planning permission. This is especially important in cases where a change of use is involved, such as converting a single dwelling into a House in Multiple Occupation (HMO). 

Planning and licensing are separate but often overlapping legal frameworks. Failing to obtain the correct permissions can lead to enforcement notices and legal action, even if your property is licensed. At Yuno, we help you determine whether planning permission is required and ensure your property remains compliant on both fronts.

Key Types of Licensing Schemes

This is the Local Authority’s process of improving living standards in rental accommodation and proving that landlords and property managers are ‘fit and proper persons’ to operate the property. The type of licence a property requires varies depending on a number of factors, including the number of tenants and the council in which your property is located.

Local authorities implement different types of licensing schemes, each tailored to address specific housing challenges. The main schemes include:

• • Mandatory HMO Licensing: In England and Wales, this applies to Houses in Multiple Occupation (HMOs) (254 HMOs only) rented to five or more tenants from two or more households, sharing facilities like kitchens or bathrooms. In Wales only, the property must be 3 or more stories, and in England only, there is an exemption for flats that have 3 or more flats in a purpose-built building.  Exclusions apply.
  • Additional HMO Licensing: This extends licensing requirements to all 254 HMOs not covered by Mandatory licensing schemes and also msy also cover 257 HMOs, which are converted buildings that meet specific criteria. These schemes are introduced in areas where there are increased safety concerns in HMOs, poor housing conditions, or where poor management practices are prevalent. Exclusions apply.
  • Selective Licensing: Covers all private rental properties in designated areas, whether a single person or family or HMO that is not covered under Mandatory or Additional HMO Licensing. Selective licensing is typically introduced to address issues such as anti-social behaviour, low housing demand, or high levels of deprivation.  Exclusions apply.

• Short-term Let Licensing: This will generally apply when you let out as a holiday let, any definitions apply to this based on the country you are in.

• HMO Licensing: Scotland HMO Licensing applies to their definition of an HMO, which is 3 or more tenants with 3 or more households. Exclusions apply.

Each scheme has specific requirements, and failing to comply can result in significant fines, enforcement action, or even restrictions on renting the property.

Note: You should hold the correct licence for you occupancy and use case at all times. You can’t hold multiple licences for the same property; you can, however, have a licence on a converted building, if it is a 257 HMO, and a licence on each flat separately. If the council asks for Selective licensing on each flat and Additional 257 HMO licensing on the building, consult an expert for support. 

Key Types of Residential Planning Schemes

This is the Local Authority’s process of controlling rental accommodation like HMOs and conversions in their local area. The type of planning a property requires varies depending on a number of factors, including the number of tenants and the council in which your property is located.

Local authorities implement different types of planning schemes; we focus on residential change of use, each tailored to address specific housing challenges. The main schemes include:

• England and Wales can have Article Directive for (Section 254) HMOs: For smaller (Section 254) HMOs (3 to 6 tenants) a change of use from a single dwelling house (use class C3) to a small HMO shared by 3 to 6 unrelated residents (use class C4) often does not need planning permission as change happens under permitted development. However, local planning authorities have the power to bring in an Article 4 direction under the Town and Country Planning Order 2015. This removes the permitted development rights and therefore requires the landlord to gain planning permission to convert their property from C3 to C4. Article 4 can be applied borough-wide or to specific areas/streets/wards within a borough and differs from council to council. (This applies in England, Wales always requires a planning application for all change of use from C3 to C4 (Section 254) HMO’s). If you are already running an HMO before this directive comes in, then you may not need to apply for Article 4 planning permission, though always consult an expert.

For immediate and non-immediate schemes, usually, planning departments consult and then implement, but they can implement immediately. Though this only lasts for 6 months, they must follow due process to extend. 

• England and Wales have Sui Generis planning permission for HMOs: This will generally always be required for large (Section 254) HMOs of 7 or more tenants with a “material change of use”.
• England, Wales and Scotland have Short-Term Let planning permission: This will generally apply when you let out as a holiday let, any definitions apply to this based on the country you are in. The requirement varies based on location, for example, London’s 90-day rule and Edinburgh’s controlled zone.
• Scotland HMO Planning Permission: This is generally required for any HMO; an HMO in Scotland is 3 or more tenants with 3 or more households.
• Lawful Use/Development: If you have the evidence and meet the requirements, you can apply for Lawful use

Steps for Licensing and Planning Success

Yuno’s property licensing and planning services provide landlords with end-to-end support, making the process straightforward and hassle-free. Here’s how we ensure your success:

• Identifying the Right Licences and Permissions: We assess your property portfolio to determine which licences and planning permissions are required based on local authority regulations.
• Compliance Checks: Our team reviews your property’s condition, planning status, management practices, and documentation to ensure you meet the standards required.
• Application Support: We handle the application process on your behalf, ensuring all forms and supporting documents are accurately completed and submitted.
• Ongoing Monitoring: Stay informed about renewal dates, planning conditions, and regulatory changes with our automated monitoring services, keeping your properties compliant year-round.

With Yuno, landlords can focus on growing their portfolios while we take care of the complexities of property licensing and planning compliance.