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How much will a HMO licence cost?

How much will an HMO licence cost?

The HMO licence fee will vary depending on the length of your licence. This will be determined by the HMO Licensing Administrators and Public Protection Enforcement Team. 

A HMO licence application will cost £619. There will be a follow-up payment before your full licence is issued of the following:

  • 5 Year Licence - £492 (£1111 in total)
  • 3 Year Licence - £420 (£1039 in total)
  • 1 Year Licence - £322 (£941 in total)

By law we are not allowed to make a surplus from the licensing of HMOs but we are able to recoup the cost of running the scheme through a licence fee. These costs include:

  • time spent administering the scheme, including processing applications, serving formal notices and taking payments
  • inspecting licensed HMOs to ensure that they are free from hazards
  • maintaining IT systems
  • identifying HMOs that should be licensed but are not

The fee will be reviewed annually and a new fee for the following year set to reflect the actual running costs of the scheme in the previous year. A time recording system is used to determine the number of hours that staff spend on HMO licensing activities.

Certain costs are not included in the licence fee. These include:

  • enforcement action for failure to license or failure to comply with licence conditions
  • enforcement action under Part 1 of the Housing Act 2004 to remedy hazards
  • enforcement action for failure to comply with HMO management regulations

Licence renewals are charged at the same rate as an initial licence.

There is no charge for varying an existing HMO licence.

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