HMO Licence Cost in Birmingham: Mandatory, Additional and Selective Fees
Birmingham runs all three kinds of property licensing at once. A large HMO of five or more sharers needs a mandatory licence costing £1,125 to £1,300 under the fee schedule the council links from its application page. Since 5 June 2023 a smaller HMO of three or four sharers needs an additional licence at £755, and every other private let in 25 of the city's 69 wards needs a selective licence at £700. This guide sets out each fee as published on 3 October 2026, who needs which licence, what the council asks for with the application and what happens if you let without one.
In this guide
Which Birmingham licence do you need? Mandatory HMO licence fees Additional licensing for small HMOs Selective licensing in 25 wards How to apply in Birmingham Room sizes and standards Penalties for letting without a licence Worked example: a six-bed HMO in Selly Oak Frequently asked questions SourcesWhich Birmingham licence do you need?
The licence follows the occupants. Count the people, including children, and the households (a family or couple is one; each unrelated sharer is another), check whether they share a kitchen, bathroom or toilet, then check the ward.
| Who lives there | Licence needed | Fee | Where |
|---|---|---|---|
| 5 or more people, 2 or more households, sharing facilities | Mandatory HMO licence | £1,125 to £1,300 | Whole city |
| 3 or 4 people, 2 or more households, sharing facilities | Additional HMO licence | £755 | Whole city, since 5 June 2023 |
| Converted block of flats below 1991 Building Regulations, two thirds or more rented | Section 257 additional licence | £755 | Whole city |
| A family, a couple or one or two sharers in a self-contained home | Selective licence | £700 | 25 of 69 wards, since 5 June 2023 |
Fees as shown on Birmingham City Council's HMO, additional licensing and selective licensing pages, read 3 October 2026. A property licensed as an HMO does not also need a selective licence.
The additional scheme is the one that catches most new landlords out. Under the national rule a three-bed house let to three friends is an HMO but does not need a mandatory licence; in Birmingham it has needed an additional licence since 5 June 2023, wherever it is in the city. The national HMO licence guide explains the definitions in full.
Mandatory HMO licence fees
Birmingham's application page says the council introduced its current mandatory fee structure on 31 March 2022, for new applications and renewals alike, and links to a summary sheet headed HMO Fees 2022 to 2023. The fee depends on the number of occupants and is paid in two parts, a non-refundable application fee and a licence fee.
| Occupants | Part A, application fee | Part B, licence fee | Total |
|---|---|---|---|
| 5 persons | £420 | £705 | £1,125 |
| 6 to 11 persons | £470 | £745 | £1,215 |
| 12 or more persons | £515 | £785 | £1,300 |
Online application fees from the HMO Fees 2022 to 2023 summary sheet linked from Birmingham City Council's "Apply for an HMO licence" page, read 3 October 2026. The sheet is the one the council currently links; confirm the figure at the point of payment.
Three things set Birmingham apart from most councils. First, a renewal costs the same as a new licence: the summary sheet says the time spent processing either is the same. Second, there is no discount for accreditation, which the council dropped in 2022. Third, every application now gets a pre-licence inspection, which is what the fee pays for. Paper applications are no longer accepted, and an optional advice visit costs £200.
Spread over a five-year licence, a five-person HMO costs £225 a year to license, against £151 a year for a three-person house on the £755 additional licence. Put the expiry date in the compliance calendar: the council asks for renewals two months before the current licence runs out.
Additional licensing for small HMOs
The additional licensing designation came into force on 5 June 2023. It covers any HMO occupied by three or four people forming two or more households who share facilities, and it applies across the whole city. Each licence costs £755 and you need one per property. The same £755 applies to a section 257 HMO: a building converted into self-contained flats where the conversion did not meet the 1991 Building Regulations and two thirds or more of the flats are rented out. That licence covers the building as a whole; individual flats may need their own.
The council's additional licensing conditions cover health and safety, occupancy levels and refuse and recycling. No tacit consent applies, so silence does not mean approval: if you have not heard within 28 days of applying, the council asks you to email the property licensing team.
Selective licensing in 25 wards
Birmingham's selective licensing scheme also started on 5 June 2023, after the government confirmed it, and covers 25 of the city's 69 wards. Inside those wards every privately rented home needs a licence unless it is exempt. Each licence costs £700 and lasts for a maximum of five years. A designation itself can run for no more than five years, so the June 2023 schemes run to June 2028 at the latest unless the council renews them.
- Exempt: a property already licensed as an HMO, accommodation managed directly by an educational establishment, and homes let by a registered social landlord. The full list is in the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006.
- Check the ward first: the council publishes a ward checker; only addresses in the 25 wards need the licence.
Our selective licensing guide explains how these schemes work nationally and compares fees across councils.
How to apply in Birmingham
- Check the public register to see whether the address is already licensed. Licences are not transferable, so if you bought a licensed HMO you need a new licence in your own name.
- Gather the documents: a fire alarm test certificate, an emergency lighting test certificate, an Energy Performance Certificate, proof that upholstered furniture meets the Furniture and Furnishings (Fire Safety) Regulations 1988, and the fee.
- Prepare a floor plan showing the layout, room sizes and the positions of smoke alarms, emergency lighting and fire doors.
- Give the gas and electrical declarations. The council says the easiest way is to attach a current gas safety certificate, an electrical safety certificate (see the EICR cost guide) and a PAT certificate.
- Apply online through the council's form and pay Part A; Part B follows if the licence is granted.
The certificate cost calculator prices the gas, electrical and fire risk paperwork before you start.
Room sizes and standards
Every mandatory HMO licence in England must apply the national minimum bedroom sizes set in 2018: 6.51 square metres for one person over 10, 10.22 square metres for two people over 10 and 4.64 square metres for a child under 10, with no room under 4.64 square metres used for sleeping. The licence states the maximum number of occupants for each room. Smoke and carbon monoxide alarms are a legal duty in every let, licensed or not; see the alarm rules guide.
Penalties for letting without a licence
The council's own pages list three consequences: a civil penalty notice of up to £40,000, criminal prosecution with an unlimited fine, and a rent repayment order that lets tenants reclaim rent. The £40,000 maximum applies to offences committed on or after 1 May 2026, and the Renters' Rights Act 2025 doubled the maximum rent repayment order to 24 months' rent for offences from the same date. Birmingham also runs a confidential online reporting service for unlicensed properties, so tenants and neighbours can report directly. From 15 December 2026 penalties are also recorded on the landlord database, which starts with the West Midlands; the landlord fines guide has the full list.
Worked example: a six-bed HMO in Selly Oak
A six-bedroom house let to six students on a joint tenancy needs a mandatory licence at the 6 to 11 person rate: £470 with the application and £745 when the licence is granted, £1,215 in total, or £243 a year over five years. If the landlord also owns a two-bed flat let to a couple in one of the 25 selective wards, that flat needs a separate £700 selective licence, £140 a year. Together that is £1,915 of licence fees, roughly 1 percent of five years' rent on the two properties. The rental yield calculator takes licence fees as an annual cost.
Frequently asked questions
How much is an HMO licence in Birmingham?
A mandatory licence for five or more sharers is £1,125 for five people, £1,215 for six to 11 and £1,300 for 12 or more, under the fee schedule the council links from its application page, read 3 October 2026. Renewals cost the same as new licences. A smaller HMO of three or four sharers needs a £755 additional licence.
Do I need a licence for a three-person HMO in Birmingham?
Yes. Since 5 June 2023 an HMO of three or four people in two or more households sharing facilities needs an additional licence at £755, anywhere in the city.
Which areas of Birmingham need a selective licence?
25 of the city's 69 wards, since 5 June 2023. Every private let in those wards needs a £700 licence unless it is exempt, for example because it already has an HMO licence. The council publishes a ward checker.
Is there a discount for accredited landlords in Birmingham?
Not on the mandatory HMO fee. The council removed the accreditation reduction when it introduced its current fee structure on 31 March 2022.
What is the fine for an unlicensed HMO in Birmingham?
A civil penalty of up to £40,000, or prosecution with an unlimited fine, plus a rent repayment order that lets tenants reclaim up to 24 months' rent for offences from 1 May 2026.
Sources
Birmingham City Council: Apply for an HMO licence and the linked HMO Fees 2022 to 2023 summary sheet; Additional licensing for HMOs; Selective licensing, all read 3 October 2026. Legislation: Housing Act 2004 section 72, Licensing of HMOs (Prescribed Description) (England) Order 2018, Mandatory Conditions of Licences Regulations 2018, Renters' Rights Act 2025 Part 4 and GOV.UK on HMO licensing; Selective Licensing of Houses (Specified Exemptions) (England) Order 2006. See the methodology.