The short answer
In Peterborough, an HMO with 5 or more people needs a mandatory HMO licence. Since 26 January 2026, HMOs with 3 or 4 people need a licence too, under the council's additional licensing scheme. Letting an HMO that should be licensed without a licence is an offence.
Is your property an HMO?
An HMO is a home shared by people from more than one household who share facilities such as the kitchen, toilet or bathroom. It can be anything from bedsits with their own kitchens and a shared bathroom to room lets where everyone shares the kitchen and bathroom.
A household can be one person or several. People who are related, or living as a couple, count as one household. The council's examples:
| Who lives there | Households |
|---|---|
| Two friends | 2 |
| Three friends | 3 |
| A couple and one friend | 2 |
| A couple living with parents | 1 |
| A couple living with three friends | 4 |
| Two families | 2 |
The council expects landlords and managers to make appropriate checks that tenants who say they are related really do form one household.
Which licence do you need?
| People living in the HMO | Licence | Since |
|---|---|---|
| 3 or 4 | Additional HMO licence | 26 January 2026 |
| 5 or more | Mandatory HMO licence | Already required |
If you already hold a selective licence for an HMO with 3 or 4 people, it moves across to the additional licensing scheme automatically – you do not need both.
What an additional licence costs
| Part | What it covers | Fee |
|---|---|---|
| Part A | Processing the application, paid when you apply | £588 |
| Part B | Compliance work for the scheme | £512 |
| Total | £1,100 |
The fee is the same whenever in the scheme you apply, and licences cannot be transferred. An additional licence cannot be moved to the mandatory scheme if more people move in: a mandatory licence needs its own application.
Getting advice before you apply
The council's Housing Standards team offers free standard advice on fire precautions and escape routes, kitchens and bathrooms, space and overcrowding, and management. A more detailed advice service, including a site visit, is also available for a fee (£190 plus VAT for the first two hours).
Penalties
Running an HMO that should be licensed without a licence can lead to a civil penalty of up to £40,000, or prosecution and an unlimited fine. A rent repayment order can require repayment of rent for up to 24 months, and a conviction can stop someone holding an HMO licence or managing an HMO anywhere in England.
If a licence is refused
The council must give reasons, and you can appeal to the First-tier Tribunal within 28 days of the decision. You will see a draft licence first, with the chance to comment on its conditions.
Not sure where you stand? Book a free rental valuation and tell us who lives at the property. We help with HMO licence applications and deal with the council with you, for £250 plus the council's fee.
Sources
- Peterborough City Council, HMO licensing information (opens in a new tab) – last updated 2 September 2026
- Peterborough City Council, Additional HMO licensing (opens in a new tab) – last updated 4 September 2026
- Peterborough City Council, Selective licensing scheme (opens in a new tab)
Checked 28 September 2026. The council's pages are the authority; check them before you rely on this guide.