HMO Licence Cost in Leicester: The £900 HMO Licence and the Selective Scheme
A mandatory HMO licence in Leicester costs £900, one of the simplest fees in England: one figure, applied for online. The bigger cost for many Leicester landlords is the selective licence, £1,290, which since October 2022 has applied to every private let in parts of five wards, including small HMOs of up to four sharers. This guide sets out both fees as published on 3 October 2026, the selective areas, what the council checks before it grants a licence and when you do and do not get money back.
In this guide
Leicester licence fees Mandatory HMO licensing in Leicester The selective licensing scheme What the council checks before granting Discounts and refunds How to apply Penalties Worked example: a Westcotes terrace with three sharers Frequently asked questions SourcesLeicester licence fees
| Licence | Who needs it | Fee | How it is paid |
|---|---|---|---|
| Mandatory HMO licence | 5 or more tenants forming more than one household, sharing toilet, bathroom or kitchen | £900 | Online application |
| Selective licence | Every private let in the selective areas, including HMOs of 2 or more households with up to 4 people | £1,290 | £1,032 on application, £258 when the licence is issued |
Leicester City Council "Houses in multiple occupation" and "Selective licensing" pages, read 3 October 2026.
At £900, a five-year HMO licence in Leicester costs £180 a year, below the £1,607 standard fee in nearby Nottingham and Coventry's £944 for a five-year licence. The selective licence is the more expensive of the two, which is unusual: in most cities the HMO licence costs more. See the national HMO licence guide for other councils.
Mandatory HMO licensing in Leicester
Leicester's definition follows the national rule. A home is an HMO if three or more people in more than one household live there; it is a large HMO needing a mandatory licence if at least five tenants live there, forming more than one household, and share the toilet, bathroom or kitchen. You do not need a licence for a purpose-built flat in a block of three or more self-contained flats, for a house converted to flats that meet the 1991 Building Regulations, or where two thirds or more of the flats are owner-occupied.
The council lists the landlord's core duties: smoke alarms fitted and working, escape routes kept clear, gas and electrical safety checks carried out, communal areas and shared facilities adequate, clean and in good repair, and enough waste bins and storage. These come from the Management of Houses in Multiple Occupation (England) Regulations 2006, which apply to every HMO, licensed or not. Price the checks with the certificate cost calculator; the gas safety and EICR guides explain the intervals.
The selective licensing scheme
The scheme was introduced in October 2022 to improve rented housing in areas badly affected by poor housing, and the council says it will be reviewed in October 2027. It covers parts of these wards:
- Braunstone Park and Rowley Fields
- Fosse
- Westcotes
- Stoneygate
- Saffron
The boundary runs through wards, so check the address on the council's map. Inside the area, every rented property needs a licence, including small HMOs of two or more households with up to four people sharing. That is how Leicester licenses small HMOs in these streets: through selective licensing rather than a separate additional licensing scheme. Larger HMOs need the mandatory licence instead. Exemptions are set out in the 2006 Exemption Order and Schedule 14 of the Housing Act 2004. Our selective licensing guide explains how designations are made.
What the council checks before granting
Leicester only issues a selective licence once it is satisfied that the proposed licence holder is the most appropriate person to hold it, that the property is competently managed and that it is free from Category 1 hazards under the Housing Health and Safety Rating System. In practice the initial £1,032 pays for:
- validating the application and background checks;
- a fit and proper person assessment, for which you need a declaration dated within the last three months;
- a full inspection of the property, advice on fixing any compliance issues and a check that they have been fixed;
- drafting the licence.
The second £258 covers considering representations, issuing the final licence, keeping the public register, complaints and compliance checks during the licence. Licence holders must manage gas and electrical certification, fire safety (the council publishes a landlord fire risk assessment template), repairs, tenancy agreements and anti-social behaviour. Fire detection and alarm systems must be linked and connected to the mains, a higher standard than the national alarm rules, which do not require mains wiring. Budget for an electrician if your property still has battery alarms.
Discounts and refunds
You may be eligible for a discount if you apply within six months of buying a property in the licensing area; the council's page does not state the amount. Refunds are narrow: you get money back only if the property does not need a licence or you made a duplicate application. There is no refund if you sell during the process, if the council refuses or revokes the licence, if you withdraw, if a variation shortens the licence or if planning permission is refused. The council recommends getting planning permission before applying. The fee is not linked to the licence length, so cancelling early returns nothing.
How to apply
- Check the address on the selective licensing map, or confirm the property is a large HMO.
- For a selective licence, submit a fit and proper person declaration dated within the last three months.
- Apply through the council's online portal: the HMO form through the council account service, the selective licence through the regulatory portal. The council publishes a step-by-step PDF on making a selective licensing application.
- Pay £1,032 with the selective application and £258 when the licence is issued, or the £900 HMO fee.
If you need help, the council offers assisted application sessions on Tuesdays and Thursdays between 10am and 2.45pm, booked by email.
Penalties
Leicester publishes a selective licensing enforcement policy and acts where licence holders do not meet the requirements. Nationally, for offences from 1 May 2026, letting without a required licence carries a civil penalty of up to £40,000 or prosecution with an unlimited fine, and a rent repayment order of up to 24 months' rent. The landlord fines guide sets these out, and the East Midlands opens on the landlord database on 15 February 2027.
Worked example: a Westcotes terrace with three sharers
A landlord lets a three-bed terrace in the Westcotes part of the selective area to three unrelated sharers. Three people is below the mandatory threshold, and Leicester has no separate small-HMO scheme here, so the property needs a selective licence: £1,032 up front and £258 on issue, £1,290. If the landlord had let the same house to five sharers, it would need the £900 HMO licence instead, and no selective licence. Spread over a five-year licence the selective fee is £258 a year. Add the mains-wired interlinked alarms if they are not already fitted, and record the renewal in the compliance calendar; the rental yield calculator shows the effect on returns.
Frequently asked questions
How much is an HMO licence in Leicester?
£900 for a mandatory HMO licence, as shown on the council's website on 3 October 2026. Apply online through the council's account service.
How much is a selective licence in Leicester?
£1,290: £1,032 when you apply and £258 when the licence is issued. A discount may be available if you apply within six months of buying the property.
Which areas of Leicester need a selective licence?
Parts of Braunstone Park and Rowley Fields, Fosse, Westcotes, Stoneygate and Saffron wards. The scheme started in October 2022 and will be reviewed in October 2027.
Does a small HMO in Leicester need a licence?
Inside the selective area, yes: the selective licence covers small HMOs of two or more households with up to four people. Outside it, an HMO of three or four people does not need a licence; five or more needs the mandatory HMO licence everywhere.
Do I get a refund if Leicester refuses my licence?
No. Refunds are only given if the property does not need a licence or you applied twice. Withdrawing, selling during the process, refusal and revocation all mean no refund.
Sources
Leicester City Council: Houses in multiple occupation, Selective licensing and the selective licensing enforcement policy, 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; Management of HMOs (England) Regulations 2006; Selective Licensing of Houses (Specified Exemptions) (England) Order 2006. See the methodology.