HMO Licence Cost in Liverpool: Fees by Room Count and the Selective Scheme
Liverpool prices its HMO licence by the number of units of accommodation, meaning bedrooms. A licence for up to five units costs £1,328, rising by about £121 a unit to £1,932 for ten, then £60 a unit to a maximum of £3,620. The first £489.10 is a non-refundable administration charge. Liverpool also runs a selective licensing scheme in designated wards, started on 1 April 2022, with a full fee of £704 and discounts that can bring it to £321. This guide sets out the fees published on 3 October 2026, the shorter-licence rule, and how to apply through the council's portal.
In this guide
HMO licence fees by number of units Shorter licences cost less, but not much less Selective licensing: fees and discounts How to apply Penalties Worked example: a seven-bed HMO and a new flat Frequently asked questions SourcesHMO licence fees by number of units
Liverpool's fee is in two parts. Payment 1, £489.10, is taken when you submit the application and is non-refundable. Payment 2 is requested when the council is ready to grant the licence and carry out compliance checks. The same fees apply to new licences and renewals for up to five years.
| Units of accommodation | Payment 1 | Payment 2 | Total | Per year over 5 years |
|---|---|---|---|---|
| Up to 5 | £489.10 | £838.90 | £1,328 | £266 |
| 6 | £489.10 | £959.90 | £1,449 | £290 |
| 7 | £489.10 | £1,080.90 | £1,570 | £314 |
| 8 | £489.10 | £1,201.90 | £1,691 | £338 |
| 9 | £489.10 | £1,321.90 | £1,811 | £362 |
| 10 | £489.10 | £1,442.90 | £1,932 | £386 |
| 11 | £489.10 | £1,502.90 | £1,992 | £398 |
| Each unit above 10 | Plus £60 | Maximum £3,620 |
Liverpool City Council, "Apply for or renew an HMO licence", read 3 October 2026. The 11-unit figure is the council's own worked example; per-year figures are our division of the total by five, rounded.
Per room the fee is fairly flat, which suits larger houses; the rental yield calculator spreads it over the licence: about £266 for a five-bed house and £193 a room for a ten-bed. A five-bed house costs more to license here than in Leeds (£975) or Newcastle (£1,000), though less than in Bradford (£1,625.05). See the national HMO licence guide for the wider picture.
Shorter licences cost less, but not much less
Licences can run for up to five years, but the council may grant a shorter one if the property has been unlicensed for any period when it should have been licensed, if it has recent evidence of poor management, if you do not respond to notices or information requests, or if you do not have the correct planning consents. The list is not exhaustive. For a shorter licence Payment 1 stays at £489.10 and Payment 2 is charged at 40 percent for a one-year licence and 70 percent for a three-year licence.
| Licence length, up to 5 units | Payment 2 | Total | Per year |
|---|---|---|---|
| 5 years | £838.90 | £1,328.00 | £265.60 |
| 3 years (70 percent) | £587.23 | £1,076.33 | £358.78 |
| 1 year (40 percent) | £335.56 | £824.66 | £824.66 |
Our calculation from the percentages on Liverpool City Council's HMO page, read 3 October 2026.
A one-year licence costs three times as much per year as a five-year one, and you pay Payment 1 again at every renewal. The planning point is easy to miss: a licence can be shortened where the correct planning consents are missing, so check the planning position with the council before converting a family house to an HMO.
Selective licensing: fees and discounts
A selective landlord licensing scheme covering designated wards started on 1 April 2022. Within the designated area most private lets need a licence; properties with an HMO licence are exempt, and the 2006 Exemption Order lists the rest. A designation can last no more than five years, so this one runs to 31 March 2027 at the latest unless the council makes a new one. Watch the council's page for any replacement scheme.
| Selective licence type | Initial | Final | Total |
|---|---|---|---|
| Full property licence fee | £232.32 | £471.68 | £704 |
| New rental property licence (early bird) | £233.28 | £252.72 | £486 |
| New rental property, landlord membership discount | £233.48 | £215.52 | £449 |
| New rental property, EPC C or above | £223.10 | £189.90 | £422 |
| New rental property, multi-flat in same block | £232.10 | £189.90 | £422 |
| New property, EPC C or above, membership discount | £234.85 | £150.15 | £385 |
| New property, EPC C or above, plus multi-flat | £232.70 | £125.30 | £358 |
| New property, EPC C or above, multi-flat and membership | £234.33 | £86.67 | £321 |
| Landlord providing permanent homes for the council's homelessness duty | No fee |
Liverpool City Council, "Fees, discounts and exemptions", read 3 October 2026. The council reviews licence fees each year.
The early bird rate applies to properties new to the rental market after 31 July 2022 where you apply before the property is tenanted or within 14 days of it being occupied, or within 14 days of buying with a tenant in place. The discounts then stack on top: £64 for an EPC of C or above, £64 where every flat in a block is licensed by the same holder, and £37 for active membership of Propertymark, Safeagents, Liverpool Student Homes, the NRLA or the North West Property Owners Association. You must be a member before you apply, and the council may refuse a discount where it has taken enforcement action against you. An EPC of C saves money here as well as meeting the 2030 standard; the EPC cost guide covers getting a new certificate.
How to apply
- Read the standards. The council's HMO licence guidance sets out the health, safety and welfare standards a licensed HMO must meet. The national minimum bedroom sizes apply: 6.51 square metres for one adult, 10.22 for two.
- Register on LAR, the council's licensing and regulation portal. It can only be accessed from the UK.
- Choose the application type: HMO Licence Initial or HMO Licence Renewal, and pay Payment 1 by card with 3D Secure.
- Track and pay Payment 2 through the same account when the council is ready to grant.
It is your responsibility to keep a valid licence at all times; the council may remind you before expiry but does not have to. Refunds are only given for duplicate applications, exempt properties or the wrong application type, not if you withdraw, are refused or ask for the licence to be revoked. Price the certificates the council will ask about with the certificate cost calculator.
Penalties
Operating a licensable HMO or selectively licensable property without a licence is an offence under the Housing Act 2004. For offences committed on or after 1 May 2026 the maximum civil penalty is £40,000 and tenants can claim a rent repayment order of up to 24 months' rent. An unlicensed period also counts against you when the council decides the length of your eventual licence, which costs more per year. The landlord fines guide sets out the full regime.
Worked example: a seven-bed HMO and a new flat
A landlord licenses a seven-bed HMO near the universities for five years at £1,570, and buys a one-bed flat in the selective area with an EPC of C, applying within 14 days and holding NRLA membership: £385. Total £1,955, or £391 a year. If the HMO had been unlicensed for a period and was granted a one-year licence instead, Payment 2 would be 40 percent of £1,080.90, £432.36, so £921.46 for the year and the same again next year. The rental yield calculator shows what that does to net yield, and the compliance calendar keeps the renewal date in view.
Frequently asked questions
How much is an HMO licence in Liverpool?
£1,328 for up to five units of accommodation, £1,449 for six, £1,570 for seven, up to £1,932 for ten, then £60 a unit more to a maximum of £3,620. Fees read on the council's website on 3 October 2026.
Is the Liverpool HMO application fee refundable?
No. Payment 1 of £489.10 is a non-refundable administration charge. Refunds are only given for duplicate applications, exempt properties or the wrong application type.
How much is a selective licence in Liverpool?
£704 for a full licence, £486 at the early bird rate for a property new to the rental market, and as little as £321 with the EPC C, multi-flat and membership discounts combined. Landlords helping the council house homeless households pay nothing.
Why would Liverpool give me a one-year HMO licence?
If the property was unlicensed when it should have been licensed, if there is recent evidence of poor management, if you ignore notices or if planning consents are missing. Payment 2 is then 40 percent of the full figure, so the licence costs more per year.
How do I apply for an HMO licence in Liverpool?
Online through the council's LAR portal: register, choose HMO Licence Initial or Renewal, and pay Payment 1 by card. The portal can only be used from the UK.
Sources
Liverpool City Council: Apply for or renew an HMO licence, Selective licensing fees, discounts and exemptions and Licences for landlords in parts of Liverpool, 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.