Birmingham Section 257 HMO Licence for Converted Buildings

Converted blocks of flats in Birmingham face a licensing layer that catches many freeholders off guard. If the building was converted into self-contained flats, the conversion work did not comply with the applicable building standards and still does not comply, and less than two-thirds of the flats are owner-occupied under the statutory definition, the entire building counts as a Section 257 HMO under the Housing Act 2004 — and needs its own licence on top of any licences required for the individual flats inside it.

What Makes a Building a Section 257 HMO

Three conditions must all be met:

1. The building was converted into self-contained flats. Each flat has its own kitchen, bathroom and entrance — they are not sharing facilities like a traditional HMO.
2. The conversion work did not comply with the applicable building standards and still does not comply with them. For work completed before 1 June 1992 (or covered by regulation 20 of the 1991 Regulations), the standard is equivalent to the Building Regulations 1991 as at that date; later conversions are assessed against the requirements in force at the time.
3. Less than two-thirds of the self-contained flats are owner-occupied under the statutory definition. If the building has six flats and five or more are privately rented, this part of the test is met.

This definition catches a specific type of property: older, poorly converted blocks where fire separation, sound insulation and structural standards may not meet modern codes. Birmingham City Council's additional licensing designation, which runs city-wide from 5 June 2023 to 4 June 2028, explicitly includes Section 257 buildings.

Who Applies

The freeholder or head lessor of the building — the person responsible for the building's communal areas, structure and shared services — must apply for the Section 257 additional HMO licence. This is a licence for the building as a whole, covering corridors, stairways, fire routes and shared infrastructure.

Individual flat owners or leaseholders do not apply for the Section 257 licence. However, their individual flats may separately need their own licences:

• A flat within the building that is let to a single family or a single tenant in one of Birmingham's 25 selective licensing wards needs a selective licence (£700).
• A flat occupied by three or more unrelated sharers forming two or more households needs an additional or mandatory HMO licence in its own right, depending on the number of occupants.

The building-level Section 257 licence and the individual flat licences are separate applications with separate fees.

Fees and Application

The Section 257 additional HMO licence costs £755, matching the standard additional HMO licence fee. It follows the same two-stage payment structure — a Stage 1 application fee and a Stage 2 grant fee — and the same online application process through Birmingham City Council's Property Licensing Portal.

The documentation requirements are more demanding than a standard flat licence. In particular, the council will expect:

• Fire risk assessment for the communal areas, compliant with the Regulatory Reform (Fire Safety) Order 2005
• Metric floor plans of the building showing communal areas, fire doors, escape routes, smoke alarms and CO detectors
• Gas safety certificates for any communal gas installations
• EICR covering the communal electrical installation

The management of a Section 257 building is governed by the Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007, which impose duties on the building manager to maintain fire precautions, utility supply, common parts and waste facilities. Failure to comply is an offence under Section 234(3) of the Housing Act 2004, but a person has a defence if they had a reasonable excuse under Section 234(4). These duties apply whether or not the building holds a valid licence.

The Enforcement Angle

Operating a Section 257 building without the required licence carries the same penalties as any other unlicensed letting in Birmingham: civil penalties up to £40,000 per offence (since May 2026 under the Renters' Rights Act reforms) or prosecution with an unlimited fine. Tenants in the individual flats can also apply for rent repayment orders covering up to 24 months of rent if the building-level licence is missing.

The risk compounds because many freeholders of older converted blocks are unaware that the building itself needs licensing separately from the individual flats. If neither the building licence nor the individual flat licences are in place, each missing licence is a separate offence.

Our Birmingham Landlord Licensing Guide covers all three licensing schemes operating in Birmingham and explains how Section 257 buildings fit into the scheme hierarchy, so freeholders and flat landlords can work out exactly which licences their building needs.

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