Mandatory vs Additional vs Selective Licensing
London landlords are often surprised to learn there isn't one single "HMO licence" — there are three separate licensing routes, and which one (if any) applies to your property depends on where it is, what type of property it is, and who lives in it.
Mandatory HMO Licensing
Mandatory licensing applies under the Housing Act 2004 to any property occupied by 5 or more people forming 2 or more separate households who share facilities such as a kitchen or bathroom. This applies across all of London and the rest of England — there is no need for a borough to introduce a scheme, and it applies regardless of how many storeys the property has.
Landlords of qualifying properties must hold a Mandatory HMO licence or risk civil penalties, criminal prosecution, and Rent Repayment Orders.
Additional HMO Licensing
Additional licensing is a local scheme a council can introduce to bring smaller HMOs — typically those with 3 or 4 sharers from 2 or more households — into a licensing requirement, even though they fall below the national mandatory threshold. Whether Additional licensing applies depends entirely on whether your borough (and sometimes your specific ward) has an active scheme.
Many London boroughs run Additional licensing schemes, but the areas covered, fees, and standards required vary borough by borough — check your specific borough guide for current details.
Selective Licensing
Selective licensing is the odd one out: it is not about HMOs at all. A council can designate an area (sometimes borough-wide, sometimes specific wards or streets) where every privately rented property needs a licence, regardless of property type or how many people live there. This means an ordinary single-family buy-to-let can need a Selective licence if it falls within a designated area.
Selective licensing schemes are introduced and renewed by individual councils and typically run for a fixed number of years, so it is worth checking whether a scheme is newly introduced, ongoing, or due to expire.
Frequently Asked Questions
Can more than one licensing scheme apply to the same property?
No single property needs more than one HMO licence type at once, but a property that is not an HMO can still need a Selective licence if it sits in a designated area. Section 257 (converted blocks of flats) can also apply alongside or instead of standard HMO rules depending on the building.
Which scheme is compulsory everywhere in London?
Mandatory HMO licensing is the only one of the three that applies nationally by law, with no need for a local council scheme. Additional and Selective licensing only apply where a specific council has introduced a designated scheme for its area.
How do I find out which scheme applies to my property?
The answer depends on your borough, ward, property type, and how many people from how many households live there. Use our licence checker for an indicative result, or check the specific borough guide for your property.
Not sure where to start?
Work through our "Do I need an HMO licence?" checklist or see London licence fees by borough for a quicker starting point, or check your property directly below.
Which scheme applies to your property?
Book a free consult, or use the free licence checker for a borough-aware answer.