How Much Does an HMO Licence Cost in the UK? (2026 Fee Guide)
HMO licence fees vary considerably across the UK — from under £600 in some rural English councils to over £1,600 in parts of London. There's no single national figure, because each local authority sets its own fee structure.
This guide breaks down what HMO licences typically cost, what drives the price, and how to legitimately reduce your fee.
Related: HMO Licence Requirements Checklist | HMO Licensing in London
The Short Answer: UK HMO Licence Fees at a Glance
| Area | Typical mandatory HMO fee (new application) |
|---|---|
| Inner London | £1,200 – £1,600 |
| Outer London | £900 – £1,200 |
| Large English cities (Manchester, Birmingham, Leeds) | £950 – £1,100 |
| Medium English cities (Sheffield, Nottingham, Leicester) | £850 – £1,050 |
| Smaller English towns and districts | £700 – £900 |
| Rural English councils | £600 – £800 |
| Wales | £700 – £900 (plus Rent Smart Wales registration) |
| Scotland | £550 – £750 (3-year licence, lower threshold) |
These are approximate ranges for new mandatory HMO licence applications. Renewal fees are typically 15–25% lower. Additional and selective licence fees are usually lower than mandatory HMO fees.
What Determines the Fee?
1. The type of licence
Mandatory HMO licences (5+ persons) typically cost more than additional licensing (3–4 persons) or selective licences. This reflects the greater complexity of larger HMOs and higher inspection cost.
2. The local authority
Fee-setting is entirely at the local authority's discretion. Councils set fees to recover the reasonable costs of administering and enforcing their licensing schemes — but what's "reasonable" is interpreted very differently across the country.
3. The number of bedrooms (some councils)
Some London boroughs charge per-bedroom for mandatory HMO licences. Hammersmith and Fulham, for example, charges a base fee plus a fixed amount per bedroom above 5. A 7-bedroom HMO will cost significantly more than a 5-bedroom in the same borough.
4. Whether it's a new application or renewal
Renewal fees are almost always lower than new application fees — typically by 15–25%. This reflects the reduced administrative burden for properties with a compliance history.
5. Your accreditation status
Most councils offer discounts for landlords accredited by the NRLA (National Residential Landlords Association), the London Landlord Accreditation Scheme, or local equivalents. Discounts typically range from £50 to £200.
Two-Part Fee Structures
Many councils now use a two-part fee structure:
- Part A (admin fee): paid when you submit your application. Non-refundable, typically £150–£400. Covers the cost of processing the application regardless of outcome.
- Part B (grant fee): paid when the licence is approved. Covers the cost of managing and enforcing the scheme. This is the larger portion of the total fee.
If your application is refused, you typically lose the Part A fee but not the Part B fee (since you haven't been granted a licence). This is worth understanding before applying — if you're unsure whether your property will pass, consider a pre-application discussion with the council.
HMO Licence Costs by Region — More Detail
London (33 boroughs)
The most expensive licensing region in England. Inner London boroughs (Camden, Westminster, Tower Hamlets, Islington, Hackney, Southwark) typically charge £1,200–£1,600 for a 5-bedroom mandatory HMO. Outer London boroughs (Bromley, Bexley, Havering) tend to be lower.
Some London boroughs also charge for additional and selective licences on top of, or instead of, mandatory HMO fees — check which schemes apply in each borough before budgeting.
North West England (Manchester, Liverpool, Blackpool)
Fees in the £900–£1,100 range for mandatory HMOs. Manchester and Liverpool both have active additional and/or selective licensing, so landlords with smaller HMOs need to budget for those fees too.
Yorkshire (Leeds, Sheffield, Bradford, Hull)
Typically £850–£1,050 for mandatory licences. Leeds's two-part structure (Part 1 ~£350, Part 2 ~£700) with NRLA discount brings the effective cost to around £900. Sheffield is similar.
West Midlands (Birmingham, Wolverhampton, Coventry)
Birmingham typically charges around £1,050 for a mandatory HMO. Birmingham's combination of mandatory, additional, and selective schemes means landlords with larger portfolios may be paying multiple licence fees for different property types.
East Midlands (Nottingham, Leicester, Derby)
Nottingham and Leicester typically charge £950–£1,050 for mandatory licences. Nottingham's city-wide additional licensing scheme means nearly all HMOs — not just 5+ person ones — require a licence.
Scotland
Scotland operates under the Housing (Scotland) Act 2006 rather than the Housing Act 2004. All HMOs with 3+ persons from 2+ households require a licence (lower threshold than England). Fees are typically £550–£750, and licences are valid for 3 years rather than 5. Aberdeen, Edinburgh, Glasgow, and Dundee are the primary markets.
Wales
Welsh HMOs are licensed under the Housing Act 2004 (same as England), with fees typically in the £700–£900 range. However, Welsh landlords also need to register with Rent Smart Wales and, if self-managing, hold a Rent Smart Wales licence. This is a separate cost and requirement.
How to Reduce Your HMO Licence Fee
1. Join the NRLA or a local accreditation scheme Most councils offer discounts for NRLA members. NRLA membership costs £99/year — well worth it if the discount is £100–£200 per licence application.
2. Apply on time — don't let your licence lapse If your licence expires before you renew, you may need to pay a new application fee rather than the lower renewal fee. Set reminders well in advance.
3. Ensure your application is complete first time Incomplete applications lead to delays and, in some councils, additional admin charges. Having all certificates, floor plans, and documents ready before applying saves time and potentially money.
4. Engage with the council's pre-application process Some councils offer free or low-cost pre-application advice that can identify issues before you commit to the formal application fee.
Hidden Costs of HMO Licensing
The licence fee is only part of the compliance cost. Don't forget to budget for:
- EICR: £150–£350 per property, every 5 years
- Gas Safety Certificate (CP12): £60–£90 per property, annually
- EPC: £60–£120 per property, every 10 years (or sooner if improvements made)
- Fire door upgrades: £150–£400 per door installed (FD30 self-closing fire doors required throughout licensed HMOs)
- Smoke and CO alarm upgrades: £30–£80 per alarm
- Emergency lighting: £200–£600 per property for multi-storey HMOs
Total compliance costs for a typical 5-bed HMO over a 5-year licence period can easily reach £3,000–£5,000 beyond the licence fee itself.
Track All Your HMO Costs and Expiry Dates
HMO Hub tracks licence fees, renewal dates, certificate expiry dates, and expenses across your entire portfolio:
- Certificate expiry alerts — email reminders before Gas Safety, EICR, EPC or fire risk assessment lapses
- Expenses tracker — log every compliance cost with tax year categorisation, ready for self-assessment
- Licence renewal reminders — never pay a new application fee when you could pay the lower renewal rate
- Council-specific checklists — know exactly what your council requires
- Inspection-ready PDF export — your full compliance record in one document
Try HMO Hub free at hmohub.uk — no card needed.
Last updated March 2026. HMO licence fees change frequently. Always verify current fees directly with your local authority before budgeting.