Guide
How much does an HMO licence cost?
Updated
There is no national fee. Each council sets its own, which is why quoted prices for the same licence vary by hundreds of pounds between neighbouring boroughs.
How HMO licence fees work
- Set by each council, fees must reflect the council's processing and enforcement costs, so they differ widely across England. Check the exact figure on your council's HMO licensing pages via gov.uk/find-local-council.
- Per property, for up to 5 years, a licence lasts a maximum of 5 years (gov.uk), then must be renewed at the going rate.
- Often split in two stages, following case law on licensing fees, many councils charge an application fee up front and a second 'grant' payment when the licence issues.
- Sometimes priced per room or by size, larger HMOs often pay more, and some councils discount accredited landlords.
The costs beyond the fee
- Compliance works, licence conditions and HMO standards commonly require interlinked fire detection, fire doors, and minimum room sizes (a mandatory condition since 2018: sleeping rooms for one adult must be at least 6.51 m²). Works usually cost more than the licence.
- Safety certificates, annual gas safety certificate, electrical installation condition report (EICR) at least every 5 years, and fire-alarm servicing.
- Renewal, budget the fee again every licence term.
Is the fee tax deductible?
Licence fees are generally treated as a revenue expense of the rental business and deductible against rental profits, confirm your own position with an accountant, especially where a first licence coincides with capital works.
The expensive mistake is not the fee, it is letting an unlicensed licensable HMO, which risks a civil penalty of up to £30,000, an unlimited fine on prosecution, and repaying up to 12 months' rent. Check whether you need a licence with the checker.