Cost Guide
How Much Does a HMO Licence Cost? (2026 Guide)
A HMO Licence typically costs between £500 and £1500 for a standard property. Here is what drives the price and how to get good value.
HMO Licence Price Range
From
£500
To
£1500
Fees vary enormously by council. Mandatory HMO licence fees range from £500 to £1,500 for a 5-year licence. Some councils charge per room or per occupant. Selective licence fees are typically lower (£400–£800). Renewal fees are usually 60–80% of the initial application fee. Many councils charge a higher fee for late applications.
Annualised cost: £100–£300/year (renewed every 60 months)
What Affects the Price
The exact cost of your HMO Licence depends on several factors:
Property size
Larger properties with more rooms, circuits, or appliances take longer to inspect and cost more.
Property age
Older properties often have more complex or outdated systems that require more thorough inspection.
Location
London and the South East are typically 20-30% more expensive than the national average. Rural areas may attract travel surcharges.
Professional availability
Booking during peak periods (spring, end of financial year) can increase prices due to high demand.
Remedial work
If the inspection reveals defects, repair costs are additional. Always budget for potential remediation.
Regional Price Differences
HMO Licence costs vary across the UK. Urban areas with more competition tend to have lower prices, while rural and remote locations may charge a premium for travel.
| Region | Typical Range | Notes |
|---|---|---|
| London | £625–£1950 | Higher labour costs and parking charges |
| South East | £575–£1800 | Slightly above national average |
| Midlands | £500–£1500 | National average range |
| North | £450–£1350 | Generally lower than national average |
| Scotland | £475–£1425 | Similar to North England |
| Wales | £450–£1425 | Below national average; rural areas may charge more |
How to Get a Good Price
- Get at least 3 quotes — prices can vary significantly between professionals in the same area
- Bundle multiple properties — if you manage several rentals, negotiate a portfolio rate for inspecting all of them
- Book off-peak — avoid the spring rush and end-of-year deadlines when demand pushes prices up
- Verify qualifications first — the cheapest quote is worthless if the professional is not properly registered. The local housing authority (council) issues HMO and selective licences
- Ask about combined services — some professionals offer discounts when you combine the HMO Licence with other inspections
Cost of a HMO Licence vs Cost of a Fine
Cost of compliance
£500–£1500
Cost of non-compliance
Unlimited (criminal offence)
The maths is simple. A HMO Licence costs a maximum of £1500. The fine for not having one can be Unlimited (criminal offence) — plus the loss of Section 21 eviction rights, the cost of emergency remediation, and the reputational damage of a prosecution.
Every pound you spend on compliance saves you hundreds in potential penalties. It is not an expense — it is the cheapest insurance you can buy.
Track HMO Licence costs across your portfolio
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Start tracking HMO LicenceFrequently Asked Questions
How much does a HMO Licence cost in 2026?
A HMO Licence typically costs between £500 and £1500. Fees vary enormously by council. Mandatory HMO licence fees range from £500 to £1,500 for a 5-year licence. Some councils charge per room or per occupant. Selective licence fees are typically lower (£400–£800). Renewal fees are usually 60–80% of the initial application fee. Many councils charge a higher fee for late applications. Prices vary by region, property size, and the specific professional you use. London and the South East tend to be at the higher end of the range.
Is a HMO Licence tax deductible for landlords?
Yes. The cost of a HMO Licence is an allowable expense that can be deducted from your rental income for tax purposes. Keep the receipt and invoice as evidence. This applies whether you are a sole trader landlord or operate through a limited company.
Can I get a cheaper HMO Licence by using an unregistered professional?
No — and attempting to do so puts you at serious legal risk. A HMO Licence must be issued by a qualified, registered professional to be legally valid. A certificate from an unqualified person is worthless in the eyes of the law, and you would be treated as non-compliant. The cost of getting it right is always less than the fine for getting it wrong.