Do You Need a Licence for 3 Tenants in Portsmouth?

In most English councils, a property only needs an HMO licence when it houses five or more people. Portsmouth is different. The council's citywide Additional HMO Licensing scheme, active since 1 September 2023 and running until 31 August 2028, catches properties with just three occupants from two or more households sharing amenities. That third unrelated tenant is the trigger.

When Three Tenants Means a Licence

The scheme applies when three or four people from two or more separate households share a kitchen, bathroom or toilet. "Household" means a single person, a couple, or a family unit. Three friends sharing a terraced house are three households. A couple and their friend are two households — still caught if there are three people total.

A resident landlord with up to two lodgers is exempt. Add a third lodger and the exemption disappears — the property needs an additional HMO licence.

The Cost

An additional HMO licence for a new 5-year application in Portsmouth costs £886 total (£222 Part 1 plus £664 Part 2 at 2026 rates). The 5-year term requires accreditation, a valid EPC at Band E or above, current safety certificates and no justified complaints in the past year. If the other criteria are met, lacking accreditation or the EPC leaves the maximum term at 2.5 years, costing £917 — actually more expensive for a shorter period.

For renewals, the 5-year rate drops to £845 provided the application is submitted at least 14 days before the current licence expires.

Why Small Landlords Get Caught

The typical scenario is a landlord who lets a two-bedroom property to a couple and a single friend. Two households, three people, shared kitchen — that is an HMO under Portsmouth's scheme. Many landlords do not realise this because national mandatory licensing only starts at five occupants. Portsmouth's additional scheme fills the gap below that threshold, and it covers every ward in the city.

The council identifies unlicensed properties by cross-referencing council tax records, electoral roll data and planning databases. A property recorded as having multiple unrelated occupants but absent from the licensed HMO register is flagged for investigation.

The Penalty for Operating Without One

A civil penalty of up to £40,000 per offence, or criminal prosecution with an unlimited fine. Tenants can also apply for a rent repayment order of up to 24 months of rent. The licensing obligation depends on the scheme criteria, so check the occupier and household count before a letting arrangement changes.

What to Do

Check how many separate households share the property. If the answer is two or more and there are three or more people total, you need an additional HMO licence. Submit through the Metastreet portal, email all supporting documents to [email protected], and pay the Part 1 fee to get your application "duly made" and protect yourself while it is processed.

Our Portsmouth Landlord Licensing Guide includes the full scheme decision tree and application workflow for small HMOs.

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