[Landlord UK] HMO licensing fines increased to £40,000 on 1 May — and the selective licensing trap catching landlords who don’t think they run HMOs

First — the civil penalty for operating an unlicensed HMO increased from £30,000 to £40,000 on 1 May 2026 under the Renters Rights Act. Multiple breaches can be charged simultaneously so the combined exposure can go well above that. On top of that tenants can still apply for a Rent Repayment Order covering up to 12 months rent as a completely separate consequence.

Second — the selective licensing trap. Over 60 councils now run selective licensing schemes covering all privately rented properties in designated areas, not just HMOs. A standard single-let family home in parts of Liverpool, Nottingham, Salford, Newham or Waltham Forest needs a licence. A lot of landlords in those areas either don’t know the scheme exists or moved into the area after it was introduced without checking.

Worth mentioning for anyone with licences from 2019 or 2020 — they’re expiring now. Operating after expiry is treated the same as never having had a licence, and applying retrospectively doesn’t cure the period of unlicensed operation.

Anyone had experience applying across multiple council areas with different schemes running simultaneously?