HMO Licensing Costs in London: What Landlords Need to Know

10 Mar, 2025

HMO Licensing Costs in London: What Landlords Need to Know

Renting out a property within the bounds of HMO could earn you a pretty good penny as a landlord in London. But for you to rent out anything in your property, you need an HMO license. It is meant to ensure that your property is safe and meets the other legal requirements. Cost of HMO license is one major consideration, and it varies from different parts of the HMO property and other considerations.

The Importance of an HMO License

HMO licensing is a legal requirement for landlords renting out properties to several tenants not from the same family. It ensures that the property remains safe and properly managed. Lack of HMO licensing in the required case will result in big fines.

Key Factors Influencing the Cost of HMO License

The cost of HMO license depends on a few things:

Your Local Council: Different areas in London charge different fees for getting an HMO license.
Property Size and Tenants: Typically, larger properties that have more tenants would have higher fees.
New or Renewal Application: New applications are usually more expensive than renewals of old applications.
Extra Checks and Changes: Notably, some councils might want you to carry out additional safety checks or alterations, which could increase the costs.

Breakdown of HMO License Costs in London

The HMO licensing fee in London generally runs between £500 and £2,000, depending on the boroughs. Some examples of licensing fees are:

For the Westminster City Council, about £975 for a five-year license.
Licensing fees on Camden Council tend to be between £1,100 to £1,300 depending upon property size.
Hackney Council charges around £1,150 for a fresh application.
For Tower Hamlets Council, this cost starts at £520, plus extra charges for tenants above a specific number.

The fees vary among councils, so one should always contact their respective local council for accurate costs.

How Property Management London Can Assist You

Running an HMO could be a challenge. Property Management London assists landlords in all aspects, from obtaining an HMO license to ensuring that everything is being done according to the rules, leaving you free to concentrate on other matters.

Step-by-Step Process for Obtaining an HMO License

If you need an HMO license, here’s what you need to do:

Do an Eligibility Check - Find out from your borough's rules whether your property is HMO.
Submit an Application - You may log on to your local council website to apply.
Pay Fees- Most councils ask for part of the fee at application and the rest later.
Schedule property inspection- They will come for an inspection to check if the property is safe and complies with all the required rules.
Receive Your License - If the property meets the necessary requirements, the council will usually issue the license for five years.

Why Work with Us?

Expert Guidance: We do all licensing.
Regulatory Compliance: We facilitate the legal safety rules that apply regarding the property.
Cost-Effective Solutions: Keeping you legally compliant with your costs low is our idea.
End-to-End Support: We fill forms and inspect property; we do everything.

Final Thoughts

Landlords in London need to know about the cost of an HMO license because the amount changes with the location of the property, among other factors. Getting an HMO license can appear very complex, but with the right kind of assistance, it is really straightforward. Property Management London will handle all the arrangements for you, so you can concentrate on earning rental income. Contact us today so we can get your HMO license arranged quickly and easily!