Additional licensing is a property licensing scheme introduced by local councils to regulate smaller Houses in Multiple Occupation (HMOs) that do not fall under Mandatory HMO Licensing. It applies to HMOs that do not meet the mandatory licensing criteria but still require oversight to improve housing standards and management.
Legal Framework
Additional licensing was introduced under Part 2 of the Housing Act 2004. It allows local councils to extend licensing requirements to smaller HMOs if they believe that poor management, property conditions, or anti-social behaviour are an issue in the private rented sector.
Who Needs an Additional HMO Licence?
A property generally requires an Additional HMO Licence if:
It is rented to three or more tenants who share facilities (e.g., kitchen, bathroom), at least two of whom are unrelated.
The local council has designated an Additional Licensing scheme in that area.
Each council sets its own rules, so landlords and agents must check whether their area has an active Additional Licensing scheme.
Why Do Councils Introduce Additional Licensing?
Local councils implement Additional Licensing to:
Improve housing conditions in HMOs that do not meet Mandatory HMO Licensing criteria.
Ensure landlords are fit and proper to manage multiple-occupancy properties.
Reduce issues like overcrowding, poor maintenance, and anti-social behaviour.
Consequences of Not Having an Additional Licence
If a property that requires an Additional Licence is rented out without one, the landlord or managing agent could face:
Fines of up to £30,000 per offence
Rent Repayment Orders, requiring repayment of up to 12 months' rent
Banning Orders, preventing landlords from operating rental properties
Restrictions on serving Section 21 eviction notices
If you own or manage a rental property, it is essential to check whether Additional Licensing applies and secure the necessary licence to avoid penalties.