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HMO Licence Cost: What You Will Pay in 2026

How much an HMO licence costs in 2026: typical fees by council and scheme, two-part fees, renewal costs, extra compliance costs and a worked example to budget.

David Sampson
Created · Updated · 6 min read

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How much is an HMO licence?

There is no national HMO licence price. Each council sets its own cost-recovery fee. Birmingham's £755 in the sample is the additional licensing fee for a 3–4 occupier HMO, not a mandatory licence fee. A new five-year mandatory licence in the same sample is higher — Bristol lists £1,886. London boroughs often add a per-letting charge on top of a base fee. Always read the live council page for the address: schemes, discounts and two-part splits change. This page is a budget guide, not a quote. For what counts as an HMO and when a licence is required, use those guides first. Specialist HMO mortgages treat the fee as a sunk compliance cost, not as part of the loan.

Fee table by sample councils

Rows below were checked on the official pages on 22 October 2026. Unverified councils are omitted. Figures are for a standard new five-year licence unless noted.

CouncilFee (new)NotesCheckedSource
Manchester£1,321 (5 occupiers)Admin £865 + grant £456; higher bands for more occupiers; renewal £1,121 for 5 occupiers22 Oct 2026manchester.gov.uk HMO fees
Birmingham£755Additional licensing for 3–4 occupier HMOs (page updated 14 May 2026). Mandatory 5+ still applies separately — confirm the live mandatory fee on the council site before you budget that scheme22 Oct 2026birmingham.gov.uk additional licensing
Leeds£975Two-part £635 + £340; £825 if Leeds Rental Standard member22 Oct 2026leeds.gov.uk HMO licensing
Nottingham£1,607From 1 April 2026; Part A £697 + Part B £910 (up to 9 bedrooms). Accredited £1,210; less-compliant £2,18022 Oct 2026nottinghamcity.gov.uk HMO licensing
Bristol£1,886New licence £1,121 + £765; renewal £1,564. Rent with Confidence discount £150 if eligible22 Oct 2026bristol.gov.uk mandatory HMO fee
Islington£900 + £100 per lettingPart A £500; Part B £400 plus £100 per letting (cap 21). S257 block £800. Accreditation / EPC / renewal discounts on Part B22 Oct 2026islington.gov.uk property licensing

Two-part fees

Most councils split the fee into an application part (Part A) and a grant part (Part B). That split follows cost-recovery case law: the council can charge for processing up front and for running the scheme only if it grants the licence. If the application is refused, Part B is not usually due. Part A is often not refunded. Leeds invoices after you apply; Manchester and Nottingham publish both parts on the fee page. Budget the full total, not only Part A, and keep the payment receipts with the licence pack.

Renewal and variation costs

A licence usually lasts five years. Renewal is a new application at a published renewal tariff (often lower than a first grant, as in Manchester and Bristol). Variation (adding a room, changing the manager) may be free, a small admin fee, or a fresh application if the change is material. Changing the licence holder on a sale is treated as a new application: licences are not transferable. Operating after expiry is treated like operating without a licence. See the HMO licence guide for when the duty applies.

Discounts

Common discounts are landlord accreditation (Leeds Rental Standard, Nottingham Rental Standard, Bristol Rent with Confidence, Islington accreditation), early or in-time renewal, and sometimes a better EPC. Discounts usually come off Part B and need a certificate at application. Do not assume a national landlord association card is accepted: each council names the schemes it recognises.

Other compliance costs

The licence fee is rarely the largest first-year cost. Budget a fire-risk assessment, alarms and fire doors, room-size or amenity works, gas safety, EICR, EPC and floor plans. Those items are what valuers and licensing officers inspect. A cheap licence on a house that then needs new doors is not a cheap licence. Keep invoices: some lenders and buyers will ask to see that the conditions were met, not only that the fee was paid.

Worked first-year cost example

Take a five-person licensed HMO in Manchester. Licence £1,321. Add a fire-risk assessment, a gas certificate, an EICR and an EPC at typical contractor prices for a small house, plus any door or alarm works the risk assessment requires. Your first-year compliance cash can sit well above the fee alone. In Islington a five-letting house at £900 + £100 × 5 is £1,400 before works. Use the council's own tariff, then add works. This is a planning illustration, not a quote and not tax advice.

Is the licence fee tax-deductible?

Many landlords treat a licence fee as an allowable revenue expense of the property business, but treatment depends on how you own the house (personal name versus company) and on current HMRC rules. This is not tax advice. Ask an accountant before you file. Do not model the fee as part of the mortgage advance: lenders do not add it to the loan.

FAQs

How much is a HMO licence in London?

It varies by borough. Islington (checked 22 Oct 2026) is £900 plus £100 per letting for a mandatory or additional HMO. Check the borough that issues the licence.

How much does it cost to get a private hire license?

That is a taxi / private-hire driver or operator licence, not an HMO licence. This page is only about houses in multiple occupation.

How much is a landlord licence in Wales?

Wales uses Rent Smart Wales registration and licensing plus, in some areas, local HMO licensing. Fees are set in Wales, not by the English table above.

Is it easy to get a HMO license?

The application is a form, plans, certificates and a fee. The hard part is meeting room, fire and amenity standards so the council will grant it.

Do I pay council tax in a HMO?

Sometimes the landlord is liable; sometimes each unit is banded. Confirm with the billing authority. It is separate from the licence fee.

Do I need a HMO licence for 4 bedrooms?

Mandatory licensing is usually about occupiers (five or more), not bedrooms. Four bedrooms can still need additional licensing. Check the council.

How much is an HMO licence?

In this 2026 sample, typical five-year fees run from the mid-hundreds to around £1,900 before per-letting extras. Read the row for your council.

How much does an HMO licence cost in London?

Use the borough fee page. Islington's published 2025/26 structure is £900 plus £100 per letting for standard HMO licences.

Is an HMO licence fee tax deductible?

Often treated as a revenue expense, but confirm with an accountant. This is not tax advice.

How long does an HMO licence last?

Usually up to five years. Some councils issue a shorter licence where planning or standards are outstanding.

Do I pay the licence fee in two parts?

Usually yes: Part A on application and Part B if the licence is granted.

how much is a hmo licence

See the dated table. There is no single UK figure.

how much does a hmo cost

The house, works, licence, management and finance are separate costs. This page covers the licence fee only.

how much does a hmo licence cost

Use the sample table, then the council's live tariff for the address.

how much does a hmo license cost

Same as the licence (British spelling) cost: council tariff, usually two parts, typically five years.

how much is hmo licence

The 2026 sample runs from Birmingham's £755 additional licensing fee (3–4 occupiers) to Bristol's £1,886 new mandatory licence, plus any per-letting extra. Do not treat the Birmingham figure as a mandatory licence fee.

How much is an HMO licence?

Check the council. The dated rows above are the verified sample for this page.

Important: Rates shown are indicative and subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage. Terms and conditions apply. For current rates and full details, please .

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