HMO Licence Cost in Newcastle upon Tyne: Fees, Discounts and the Selective Areas
Newcastle City Council charges £1,000 for a mandatory or additional HMO licence, £900 to renew a mandatory licence and £900 for a selective licence, under the fee structure that has applied to all property licences since 1 November 2023. Discounts of £100 for accreditation and £100 for an EPC of C or above can stack. Selective licensing now covers eight areas of the city, the newest of which, Byker Old Town and Greater High Cross, started on 1 October 2026. This guide sets out the fees, the areas, the one-year licence rule and the penalties.
In this guide
Newcastle licence fees Five years, or one Selective and additional licensing areas Conditions and standards Penalties Worked example: two lets in Benwell and Jesmond Frequently asked questions SourcesNewcastle licence fees
| Licence | Part 1, application and processing | Part 2, enforcement | Total |
|---|---|---|---|
| Additional and mandatory HMO licence | £300 | £700 | £1,000 |
| Mandatory HMO renewal | £250 | £650 | £900 |
| Selective licence | £250 | £650 | £900 |
| Selective block licence, per dwelling | £250 | £650 | £900 |
Newcastle City Council, Fee structure for all property licences from 1 November 2023, linked from the council's property licensing FAQ page, read 3 October 2026.
| Discount or charge | Amount |
|---|---|
| Accreditation | £100 off |
| EPC rating of C or above | £100 off |
| Valid application within one month of buying the property (new licences only) | £50 off |
| Temporary exemption notice | £0 |
| Variation, for example a change of address or mortgagee | £0 |
| Accreditation reinspection after a failed inspection | £50 |
| Switching from an HMO licence to a selective licence when occupancy changes | £250 |
| Switching from a selective licence to an HMO licence when occupancy changes | £300 |
Same fee document, read 3 October 2026.
An accredited landlord with an EPC C property pays £800 for a new HMO licence and £700 for a selective one. At £200 a year for a five-bed HMO over five years before discounts, Newcastle is among the cheaper big cities; Bristol charges £1,886 for the same licence. The national HMO licence guide has the comparison. The EPC discount rewards work you will need for the 2030 EPC C standard anyway.
Five years, or one
A licence can be issued for up to five years. The council's FAQ is blunt about who gets what: professional landlords who apply and comply get a five-year licence; landlords who fail to apply or have a history of non-compliance get a one-year licence, so that they are more closely regulated and pay more. Paying the full fee every year instead of every five years multiplies the cost fivefold, which makes applying on time the cheapest decision available.
Selective and additional licensing areas
Newcastle has three types of licensing: mandatory HMO licensing, which applies across England to five or more sharers; additional HMO licensing for smaller HMOs in designated areas; and selective licensing, under which every private let in a designated area needs a licence unless exempt. The council says its schemes are based principally on deprivation and anti-social behaviour, and that it drew the boundaries using areas with more than 20 percent private renting, anti-social behaviour, poor management, poor conditions and crime.
Eight selective licensing areas are designated. The scheme that started in April 2025 includes:
- Cowgate
- West End Terraces
- Howdene Road, part of Howlett Hall Road, Ravenburn Gardens and part of Swinley Gardens in Benwell
- Lemington
- Denton Court
- Columbia Grange
A further scheme covering Byker Old Town and Greater High Cross started on 1 October 2026, under a public notice of designation dated February 2026. Check the boundary documents on the council's site for the exact streets, and the council's licence types document if you are unsure which licence applies. An empty property does not need a licence; one that becomes let does. A resident landlord with more than two unrelated lodgers may need an additional licence. Our selective licensing guide explains the rules behind designations.
Conditions and standards
All licensed properties must meet the council's licensing conditions, published on its site. Typical requirements are a current gas safety certificate, a satisfactory EICR, working smoke and carbon monoxide alarms, tenancy management and anti-social behaviour procedures. HMO licences also apply the national minimum room sizes of 6.51 square metres for one adult and 10.22 square metres for two. The certificate cost calculator prices the paperwork.
Penalties
Failing to apply is a criminal offence. The council's FAQ quotes a financial penalty of up to £30,000 and a rent repayment order of up to 12 months' rent, but those are the figures from before the Renters' Rights Act: for offences committed on or after 1 May 2026 the maximum civil penalty is £40,000 and a rent repayment order can reach 24 months' rent. The council can also make a management order and take control of the property. See the landlord fines guide. The North East is called forward to the landlord database on 15 June 2027.
Worked example: two lets in Benwell and Jesmond
An accredited landlord owns a two-bed flat in the West End Terraces selective area, EPC C, and a five-bed student HMO in Jesmond with an EPC of D. The flat costs £900 less £200, £700. The HMO licence costs £1,000 less £100 for accreditation, £900. Total £1,600, or £320 a year if both licences run five years. Upgrading the HMO to C before renewal would save another £100 on the next licence; renewing on time keeps it at the £900 renewal fee rather than a new application. Use the compliance calendar to track the dates and the rental yield calculator for the cost.
Frequently asked questions
How much is an HMO licence in Newcastle?
£1,000 for a new mandatory or additional HMO licence (£300 plus £700) and £900 to renew a mandatory licence, under the fee structure in force since 1 November 2023, read on 3 October 2026. Accreditation and an EPC of C or above take £100 off each.
How much is a selective licence in Newcastle?
£900: £250 for the application and processing and £650 for enforcement. The same £100 discounts apply, and a valid application within one month of buying takes off £50.
Which areas of Newcastle have selective licensing?
Eight areas, including Cowgate, West End Terraces, part of Benwell around Howdene Road, Lemington, Denton Court and Columbia Grange from April 2025, and Byker Old Town and Greater High Cross from 1 October 2026.
Why would Newcastle give me a one-year licence?
The council issues one-year licences to landlords who fail to apply or have a history of non-compliance, so they pay the fee more often and are more closely regulated. Compliant landlords get five years.
What is the fine for not licensing in Newcastle?
For offences from 1 May 2026, a civil penalty of up to £40,000 or prosecution, plus a rent repayment order of up to 24 months' rent. The council can also take over management of the property.
Sources
Newcastle City Council: Property licensing schemes in Newcastle, Selective licensing, Property licensing FAQs and the fee structure from 1 November 2023, 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.