SERVICES → LICENSING & PLANNING → PROPERTY LICENSING
Property licensing, in three schemes
Most licensing questions come down to one of three schemes. Knowing which applies, and keeping it current, is what keeps a let legal.
What it covers
- The three schemes. Mandatory HMO, Additional HMO and Selective Licensing.
- The cost of getting it wrong. Penalties and rent repayment orders for operating unlicensed.
- Staying covered. How Yuno tracks licence status and renewal dates automatically.
The three schemes
Mandatory HMO licensing. Applies nationally to larger HMOs meeting the statutory threshold, regardless of council-specific schemes.
Additional HMO licensing. A council can extend licensing to smaller HMOs in its area that fall outside the mandatory scheme.
Selective licensing. A council can require a licence for any private rented property in a designated area, HMO or not.
Important
Operating unlicensed is expensive
Fines of up to £30,000 per offence in England & Wales, or £50,000 per offence in Scotland, plus Rent Repayment Orders of up to 12 months' rent.
How Yuno helps
Identify. which of the three schemes apply to a given property and council.
Track. licence status and renewal dates across an entire portfolio.
Act. prepares and submits applications before a deadline is missed.
QUESTIONS & ANSWERS
Questions you might have
What is the difference between Mandatory, Additional and Selective Licensing?
The three property licensing regimes differ in scope:
- Mandatory HMO Licensing applies across England and Wales to qualifying larger HMOs.
- Additional Licensing is introduced by individual local authorities and can extend HMO licensing to HMOs outside the mandatory regime.
- Selective Licensing is also introduced locally but can apply to privately rented properties more broadly, not only HMOs.
So a property can be affected differently depending on its occupancy, property type and location. (Scotland runs its own HMO licensing regime: see the England, Scotland and Wales questions below.) See Property Licensing
How do I know which property licence I need?
The licence a property needs depends on five main factors:
- where the property is located (including which UK nation it's in)
- how many people occupy it
- how many households they form
- the type and configuration of the property
- the licensing schemes the local authority currently runs
Yuno's compliance technology identifies property-specific licensing requirements rather than relying on a single national rule. See Property Licensing
Can licensing requirements vary between councils?
Yes. Licensing requirements can vary between councils. While Mandatory HMO Licensing operates across England and Wales, local authorities can introduce their own Additional and Selective Licensing schemes, and in Scotland local councils may apply stricter rules even to smaller HMOs.
So two similar properties in different council areas can have different licensing requirements. See Property Licensing
Is property licensing the same as planning permission?
No. Property licensing and planning permission are separate regulatory questions. A property can require an HMO licence and also have a separate planning requirement.
Getting a licence doesn't automatically establish that the property's planning use is lawful, and having the correct planning position doesn't automatically satisfy licensing requirements. Both should be checked.