How much does an HMO licence cost?

HMO licence fees are not set on a single UK scale: England, Wales and Scotland leave the fee to the local authority, while Northern Ireland has a statutory per-person cap. The figures below separate the legal fee rule from market estimates, because councils and licence areas change their charges.

How much does an HMO licence cost?

An HMO licence costs whatever the council sets in England, Wales and Scotland, with no national fee or legal maximum; in Northern Ireland the statutory maximum is £75 per person per year from 1 August 2025, replacing the old £45 cap. In England and Wales, Housing Act 2004 section 63 says: “The authority may, in particular, require the application to be accompanied by a fee fixed by the authority,” and GOV.UK summarises it as: “You'll be charged a fee which is set by the council.” Scotland uses the same local-fee model: “The local authority sets the standards required and also sets the fees charged for a licence application.” For an HMO licence cost in Coventry or any other English council area, the right figure is the current council fee schedule, not a UK tariff. As a market guide, one 2025 compilation put English mandatory HMO licences at “£500–£2,500, with most fees around £800–£1,230,” while Belfast currently charges £62 per person per year but cannot exceed the statutory Northern Ireland cap.

How much does it cost to set up an HMO, beyond the licence fee?

Setting up an HMO beyond the licence fee is a market-cost exercise rather than a statutory tariff: a typical conversion is estimated at £40,000–£120,000, and fire-safety works for a 6-bedroom HMO are estimated at £4,000–£9,000. No UK statute sets a pound figure for HMO conversion, fire doors, alarms, furniture or decoration; the legal sources set licensing and local-control rules, not a fixed fit-out budget. HMO Builders’ 2026 market estimate says: “A typical HMO conversion in 2026 runs between £40,000 and £120,000, depending on property condition, the number of rooms, and the spec you're targeting,” and adds: “For a 6-bedroom HMO, budget £4,000-£9,000 for comprehensive fire safety compliance, depending on the alarm specification and property layout.” In England, a C3 dwellinghouse to C4 small HMO change is permitted development unless local Article 4 controls remove that right; Northern Ireland differs because Belfast says: “All new HMOs must have planning permission and building control approval.” In Scotland, licence administration has an extra protection: an authority “cannot, for example, charge fees for inspections or variations to a licence.”

Last reviewed August 2026.

Sources

• Housing Act 2004, s.63 — “The authority may, in particular, require the application to be accompanied by a fee fixed by the authority.” Source
• Housing Act 2004 licensing fees explanatory memorandum — “Following consultation the Government has decided not to cap the fees which the local authority can charge for licensing.” Source
• GOV.UK HMO licence page — “You'll be charged a fee which is set by the council.” Source
• Welsh Government HMO landlord guidance — “Each local council sets its own fees for licensing.” Source
• Scottish Government HMO consultation — “The local authority sets the standards required and also sets the fees charged for a licence application.” Source
• Housing (Scotland) Act 2006, s.161 — “The Scottish Ministers may by order make provision about the charging of fees under subsection (1).” Source
• Houses in Multiple Occupation (Fees) Regulations (Northern Ireland) 2019 as amended by SR 2025/124 — “In regulation 2 (maximum HMO licence application fee) of the Houses in Multiple Occupation (Fees) Regulations (Northern Ireland) 2019(3) for “£45” substitute “£75”.” Source
• Belfast City Council HMO application page — “The HMO licence application cost depends on the number of people living in the property; this is £62 per person living in the property per year.” Source
• Belfast City Council HMO application page — “There is no maximum fee.” Statute supersedes this for Northern Ireland.” Source
• Independent Landlord licensing fees compilation — “Mandatory licences: £500–£2,500, with most fees around £800–£1,230.” Source
• Denbighshire Council HMO page — “A basic fee of £890 is worked out on the cost for 5 habitable rooms in a building of 3 or more storeys.” Source
• Town and Country Planning (General Permitted Development) (England) Order 2015, Schedule 2 Part 3 Class L — “(b)from a use falling within Class C3 (dwellinghouses) of the Schedule to the Use Classes Order, to a use falling within Class C4 (houses in multiple occupation) of that Schedule.” Source
• Scottish HMO benchmark standards — “It cannot, for example, charge fees for inspections or variations to a licence.” Source
• Belfast City Council HMO application page — “All new HMOs must have planning permission and building control approval.” Source
• HMO Builders, HMO conversion costs UK budget breakdown — “A typical HMO conversion in 2026 runs between £40,000 and £120,000, depending on property condition, the number of rooms, and the spec you're targeting.” Source
• HMO Builders, HMO conversion costs UK budget breakdown — “For a 6-bedroom HMO, budget £4,000-£9,000 for comprehensive fire safety compliance, depending on the alarm specification and property layout.” Source