HMO Licensing Fee Calculator
Calculate HMO licensing fees based on your local authority and property size.
Live Results
Real-time
AI Analysis
Included
Enter Your Details
Your Results
Total Licensing Fee
£1,150
Save this calculation
Create a free account to save and compare.
What is HMO Licensing?
The HMO Licensing Fee Calculator helps landlords and property investors estimate the cost of obtaining an HMO licence from their local authority. In England and Wales, certain Houses in Multiple Occupation (HMOs) require mandatory licensing, while many councils also operate additional or selective licensing schemes. Understanding these costs upfront is essential for accurate investment appraisals and cash flow planning.
How do I calculate hmo licensing?
This calculator estimates HMO licensing fees based on three key factors: **Base Fee Structure** Councils typically charge a base fee plus an additional amount per bedroom or habitable room. We've categorised councils into three fee levels: - Low (rural/smaller councils): £400-700 base - Medium (most councils): £700-1,200 base - High (London/major cities): £1,200-1,800 base **Per-Bedroom Charges** Most councils add £30-80 per bedroom on top of the base fee. Larger HMOs incur higher total fees. **Renewal Discounts** Many councils offer a 10-25% discount for licence renewals, particularly for landlords with good compliance records. We apply a standard 20% renewal discount. The calculator amortises the licence fee over the licence period to show the true annual and per-room cost impact on your investment.
Key assumptions in this calculation
When to use this calculator
Frequently Asked Questions
Do all HMOs need a licence?
Not all HMOs require licensing. Mandatory licensing applies to HMOs with 5 or more occupants forming 2 or more households. However, many councils operate additional licensing schemes that cover smaller HMOs. Always check with your local authority as schemes vary significantly by area.
What happens if I operate without a licence?
Operating an unlicensed HMO when one is required is a criminal offence. Penalties include unlimited fines, Rent Repayment Orders (tenants can reclaim up to 12 months rent), and civil penalties up to £30,000. Some councils are actively pursuing unlicensed landlords.
How long does an HMO licence last?
HMO licences are typically issued for 5 years, though some councils issue shorter 1-3 year licences, particularly for first-time applicants or those with compliance concerns. You must apply for renewal before the licence expires to avoid operating unlicensed.
Can my HMO licence application be refused?
Yes. Councils can refuse applications if the property is unsuitable for the number of occupants, if required safety standards are not met, or if the proposed licence holder or manager is not a "fit and proper person". Common issues include fire safety deficiencies and inadequate facilities.
What conditions are attached to an HMO licence?
Licence conditions typically cover: maximum occupancy numbers, minimum room sizes, fire safety requirements (alarms, doors, escape routes), kitchen and bathroom facilities, waste management, and property management standards. Breach of conditions can lead to prosecution or licence revocation.
Important Disclaimer
Licensing fees vary significantly between local authorities and change periodically. Always verify current fees with your specific council before making investment decisions. This calculator provides estimates only.
Ready to grow your property portfolio?
Get expert property investment tips delivered to your inbox.
Trusted by property investors across the UK