Gateshead Additional HMO Licensing: Rules for Shared Houses With 3–4 Occupants

Gateshead's additional HMO licensing scheme catches a category of shared houses that many landlords assume are too small to need a licence. If your property has three or four occupants from two or more separate households sharing facilities like a kitchen or bathroom, and it sits within one of the 16 designated LSOAs, you need an additional HMO licence — even though the property is below the five-person mandatory threshold.

What Counts as an Additional HMO

Under the Housing Act 2004, a house in multiple occupation (HMO) is any property where three or more people from two or more separate households share amenities. The national mandatory licensing threshold kicks in at five or more occupants. Below that, the council can run its own additional scheme to cover the gap.

Gateshead's additional HMO licensing captures properties with exactly three or four occupants from two or more households. A classic example: a three-bedroom terrace let to three unrelated professionals or students, each on a joint tenancy, sharing the kitchen and bathroom. They form three separate households under the legal definition, so the property is an HMO.

People who are married, in a civil partnership, cohabiting, or related (parents, siblings, children, grandparents, uncles, aunts, nephews, nieces, cousins) count as one household. Everyone else counts separately.

Where the Scheme Applies

The additional HMO scheme covers all 16 designated LSOAs — the same areas as both phases of selective licensing combined. It started on 1 June 2025 and runs until 31 May 2030. This is a single scheme, not phased: even properties in Phase 2 selective areas have been under additional HMO licensing since June 2025.

How It Differs From Mandatory HMO Licensing

Mandatory HMO licensing applies borough-wide (and nationally) to properties with five or more occupants from two or more households. It is a permanent national requirement, not a local scheme. Gateshead's additional licensing only applies within the 16 designated LSOAs and expires in 2030.

The displacement hierarchy works top-down: if a property qualifies for a mandatory HMO licence, it does not also need an additional one. The mandatory licence displaces the additional, which in turn displaces a selective licence.

Fees

Additional HMO licensing is more expensive than selective:

• Part A (processing): £585.80
• Part B (scheme management): £390.50
• Total: £976.30

Compared to £850 for a selective licence and £1,099.68 for a mandatory HMO licence (up to 14 beds). The £75 accredited landlord discount applies to Part B for NRLA, Propertymark, Safeagent, UKALA, RICS or Guild members.

Floor Plans: An Extra Requirement

HMO applications (both additional and mandatory) require property floor plans showing room dimensions, escape routes and amenity locations. This is not required for selective licence applications. Make sure your floor plans show each room's size in square metres — HMOs must meet minimum room sizes (6.51m² for a single occupant aged 10+, 10.22m² for two).

Common Confusion: The Three-Nurse Scenario

A landlord lets a house to three healthcare workers who each have their own bedroom but share the kitchen and bathroom. The landlord thinks it is a normal house let. In fact, three unrelated people from three separate households sharing amenities makes it an HMO. If the house is in a designated LSOA, it needs an additional HMO licence, not a selective one — and the fee is £126.30 higher.

Getting the scheme type wrong can lead to refusal, in which case Part A is retained. Gateshead provides full refunds for applications submitted in error, such as duplicate applications or properties outside the scheme. If you selected the wrong category, contact the council before paying for another application.

The Gateshead Landlord Licensing Guide includes a scheme decision flowchart that works through the hierarchy step by step, so you apply for the right licence the first time.

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