Nottingham HMO Licensing: Mandatory £1,070 Licence Fee Explained for Private Landlords

The first question most landlords ask is whether their property actually needs a licence. In Nottingham, the threshold is lower than the national mandatory standard, which means more properties are caught than landlords often expect.

Under the national mandatory HMO licensing rules, a property occupied by 5 or more people forming 2 or more households automatically requires a licence. However, Nottingham City Council operates an Additional Licensing Scheme covering properties occupied by 3 or more people in 2 or more households — meaning a standard 3-bed let to 3 sharers almost certainly requires a licence. This additional scheme has been in operation since 2018 and affects thousands of properties across the city.

A property qualifies as an HMO if tenants share at least one basic amenity, such as a kitchen or bathroom. This includes bedsit-style conversions, shared student houses, and any property converted into self-contained or non-self-contained flats that does not meet the Building Regulations standard applicable from 1991.

Selective Licensing also applies in several Nottingham wards, covering standard single-family lets — so landlords with mixed portfolios should check whether their non-HMO properties require a separate licence under that scheme too.

What Does an HMO Licence Cost in Nottingham?

The 5-year HMO licence fee charged by Nottingham City Council is £1,070 for most properties. This breaks down into two stages: a non-refundable application fee of £535 paid upfront, and a further £535 due upon the grant of the licence.

Landlords who are accredited through a recognised scheme, such as the National Residential Landlords Association (NRLA), may be eligible for a £50 discount on the total fee, bringing the cost to £1,020 for the 5-year term. Given that mandatory licensing applies nationally, this accreditation discount is worth pursuing before you submit your application.

For properties requiring an HMO licence under the mandatory national scheme (5 or more occupants), the fee structure follows the same £1,070 base rate in Nottingham. Licences are not transferable — if you sell the property or change the ownership structure, a new licence must be obtained, triggering a fresh application fee.

How Do You Apply for an HMO Licence in Nottingham?

Applications are submitted online through Nottingham City Council's licensing portal. The process typically takes between 8 and 12 weeks from the date of a complete submission, though complex cases or those requiring inspections can take longer.

You will need to nominate a licence holder, who must be the most appropriate person — usually the landlord or a managing agent — and demonstrate that they are a fit and proper person. This involves declaring any criminal convictions, civil penalties, or previous licence refusals within the last 5 years.

An inspection of the property will generally be carried out by the council's Private Sector Housing team before or shortly after the licence is granted. Properties must meet minimum room size standards: bedrooms used by a single adult must be at least 6.51 square metres, and rooms used by 2 adults must be at least 10.22 square metres. Rooms below 4.64 square metres cannot be used as sleeping accommodation at all.

Gas Safety Certificates must be renewed annually, and Electrical Installation Condition Reports (EICRs) are required every 5 years. Both documents must be in date at the time of application.

What Documents Do You Need to Apply?

Nottingham City Council requires the following supporting documents as part of a complete HMO licence application:

• A valid Gas Safety Certificate (dated within the last 12 months)
• An EICR dated within the last 5 years
• An Energy Performance Certificate (EPC) — minimum rating of E
• Fire safety evidence including interlinked smoke alarms on every storey and heat detectors in kitchens
• A floor plan of the property showing room dimensions and usage
• Proof of ownership or written authority from the freeholder if you are a leaseholder

Properties with 5 or more occupants over 2 storeys require a fire risk assessment carried out by a competent person. Carbon monoxide alarms must be fitted in every room containing a solid fuel appliance, and from 2022 this requirement was extended to rooms with gas appliances too.

What Happens If You Don't Have a Licence?

Operating an unlicensed HMO in Nottingham is a serious criminal offence. The council can pursue prosecution in the Magistrates' Court, where fines are unlimited, or issue a Civil Penalty Notice of up to £30,000 per offence. In practice, Nottingham City Council has issued penalties ranging from £5,000 to £20,000 for first-time non-compliance in recent enforcement actions.

Beyond financial penalties, tenants in an unlicensed HMO can apply to a First-tier Tribunal for a Rent Repayment Order (RRO), requiring the landlord to repay up to 12 months' rent. On a property let at £1,500 per month, that represents an exposure of £18,000 — entirely separate from any council penalty.

Landlords found guilty of operating without a licence can also be placed on the database of Rogue Landlords and letting agents, which remains publicly visible and can affect future licence applications for up to 5 years.

What This Means for Nottingham Landlords

Nottingham's additional licensing scheme, combined with its selective licensing coverage, means that the majority of private landlords in the city are operating within a licensed framework — whether they know it or not. The 3-person threshold catches far more properties than the national mandatory standard, and the council's enforcement team has been actively prosecuting non-compliant landlords since the scheme's expansion.

The practical steps are straightforward: check whether your property meets the 3-person occupancy threshold, gather your safety certificates, budget for the £1,070 fee, and submit your application before your tenants move in or before your current licence expires. A licence runs for 5 years from the date of grant, giving you a clear compliance window — but it does not renew automatically.

Nottingham landlords who act early, maintain their safety documentation, and engage with the council's licensing team proactively face no criminal risk and a predictable, manageable cost.