Birmingham Selective Licensing vs HMO Licensing: Which One Do You Need?

Birmingham runs three licensing schemes at once, and working out which one applies to your property trips up more landlords than any other part of the compliance process. The schemes overlap geographically, and which one applies depends on occupancy and ward. A single rental unit generally needs one applicable licence, but Section 257 converted buildings can require a licence for the building alongside separate licences for individual flats.

The Three Schemes at a Glance

Mandatory HMO licensing covers non-exempt properties occupied by five or more people forming two or more separate households who share amenities. This is a national scheme under Part 2 of the Housing Act 2004, and it applies across all 69 Birmingham wards. Fee: approximately £1,100.

Additional HMO licensing covers non-exempt properties occupied by three or four people forming two or more households sharing amenities. Birmingham's scheme runs city-wide, all 69 wards, from 5 June 2023 to 4 June 2028. It also covers Section 257 converted buildings. Fee: £755.

Selective licensing covers non-HMO private rentals in 25 designated wards, subject to statutory exemptions. This includes single-family lets, couples, and two unrelated tenants. Fee: £700. The scheme runs on the same 2023–2028 timeline.

The Priority Order

The schemes follow a strict statutory hierarchy — mandatory HMO at the top, selective at the bottom:

Step 1: Count the occupants and households. Five or more people in two or more households? Unless an exemption applies, the property needs a mandatory HMO licence. Location does not matter.

Step 2: Three or four people in two or more households? Unless an exemption applies, an additional HMO licence is required. This applies city-wide and displaces selective licensing even if the property is in one of the 25 designated wards.

Step 3: Fewer than three people, or a single household? If the non-exempt property is in a designated ward, it needs a selective licence. If it is in a non-designated ward, no licence is required under the current scheme.

Common Confusions

"My property is in Bournbrook & Selly Park with four students — do I need both licences?" No. Four unrelated students form four households, triggering additional HMO licensing. That displaces the selective scheme. You need one additional HMO licence at £755, not a selective licence.

"I have two unrelated tenants in Ladywood — is that an HMO?" No. Two occupants forming two households is below the three-person HMO threshold. The property is a non-HMO in a selective ward, so it needs a selective licence at £700.

"My property is in Sutton Coldfield — do I need any licence?" Sutton Coldfield is outside the 25 selective wards. If the property is a single-family let or occupied by fewer than three people forming fewer than two households, no licence is needed. If it has three or more occupants in two or more households, the city-wide additional HMO scheme applies.

What About Additional Licensing vs Additional HMO Licensing?

These are the same thing. "Additional licensing" and "additional HMO licensing" refer to the same scheme — Birmingham's city-wide designation under Section 56 of the Housing Act 2004 for smaller HMOs that fall outside the mandatory national scheme. Some council documents use both terms interchangeably.

Getting the Classification Right Matters

Applying for the wrong licence wastes time and money. If you submit a selective licence application for a property that is actually an HMO, the council will reject it. You then need to start a new application under the correct scheme, with a different fee.

The Birmingham Landlord Licensing Guide includes a scheme determination flowchart that takes you from your property's occupancy count and ward location to the exact licence type, fee, and application route — no guesswork involved.

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