Licence Application Process

Understanding the property licensing application process

Once you have submitted a mandatory HMO, additional or selective licence application, there is often confusion about what happens next. Apart from an acknowledgement of receipt, you may hear nothing for several months.

In due course, the council will process your property licence application. Exactly how this is done varies considerably. Whilst some councils want to inspect your property, others will process your application based on a desktop examination of the paperwork.

Once the council is ready to approve or refuse your licence application, they must follow the prescribed process in Schedule 5 of the Housing Act 2004. We have prepared this simple guide to explain what this means in practice.

Notice of intention to approve your licence application

If the council intend to approve your licence application, they will issue a notice setting out the reasons for their decision. At the same time, they will send you a copy of the draft licence with all the proposed terms and conditions.

The council must send this information to the applicant and all interested parties and allow at least 14 days for any written representation to be submitted.

When the draft licence is received, there is a tendency for landlords and agents to think the job is done, file the paperwork and wait for the final licence to arrive. That is entirely the wrong thing to do and if you read on, you will find out why.

The draft property licence

When you receive the draft licence, it is important to check it carefully to ensure the details are correct and that you understand and accept all the terms and conditions.

Why is this important? Once a licence has been granted, you cannot change the licence holder without applying for a new licence and paying another licence application fee. Plus, if the licence holder fails to comply with a licence condition, they are committing a criminal offence and could be prosecuted or issued with a civil penalty of up to £30,000. Saying you did not read the conditions is not a reasonable excuse!

Ten point guide to checking your draft property licence

We have complied this ten point checklist to help you check your draft property licence:

1. Is the proposed licence holder correct? Should it be an individual, limited company or another legal entity?

2. Is the property address correct?

3. What is the proposed length of the licence? It can be up to five years.

4. Is the council proposing to backdate your licence start date?

5. Do you agree with the proposed occupancy limit for the property and the individual rooms within it?

6. If occupancy is being reduced due to undersized rooms, has the council allowed a reasonable time to achieve compliance?

7. Has the council correctly applied the mandatory conditions in Schedule 4 of the Housing Act 2004?

8. Are selective licence conditions restricted to the use, management and occupancy of the property, or has the council added extra conditions about property condition and contents which are not permitted?

9. Are all the licence conditions fair, reasonable and clearly defined so you know what is required and by when?

10. Are there any property-specific conditions requiring works to be carried out? If so, is the schedule of work reasonable and has the council allowed sufficient time for you to complete the work?

As you can see, there is a lot to consider and you will only have a short time to prepare a written representation. If you need expert professional advice, you will find our contact details below.

Notice of intention to refuse your licence application

Whilst it doesn’t happen often, the council could decide to refuse your licence application. If that happens, they will issue a notice setting out the reasons for their decision.

The council must send this information to the applicant and all interested parties and allow at least 14 days for any written representation to be submitted.

Receiving a notice of intention to refuse can be a heart stopping moment and requires urgent attention. It could be that the proposed licence holder and/or manager is not fit and proper, that the management arrangements are inadequate or that the property is deemed unsuitable for the proposed use. The notice will explain the reasons so you must study it carefully.

Preparing a licence representation

There are two main reasons for submitting a licence representation:

the council is proposing to refuse the licence application and you want them to reverse their decision; or
the council is proposing to approve the licence application, but you want to negotiate changes to the occupancy limit and/or terms and conditions on the licence.

Either way, it is important to prepare a detailed representation that explains your reasons and contains constructive suggestions about how the licence should be amended.

Some councils ask you to upload your representation to an online system whereas others accept representations by email or post. Either way, make sure you follow any instructions, submit the representation by the deadline and get confirmation of receipt.

What happens next

The council must consider your representation before deciding whether to approve or refuse the licence application. If the council propose to reverse their decision or modify the licence, they will normally issue an amended draft licence and repeat the consultation process.

Alternatively, if the council decide not to alter their decision, they will approve or refuse the licence application and send a copy of the licence to all interested parties within 7 days of making their decision.

Appealing to the First-tier Tribunal

Once a licence has been approved or refused, the landlord can appeal to the First-tier Tribunal within 28 days if they disagree with the council’s decision. If you are considering this option, we would encourage you to seek expert professional advice at the earliest opportunity.

Conclusion

We hope this guide helps you to successfully navigate the licence application process. If things get complicated and you need expert professional advice to prepare a licence representation, negotiate with the council or pursue a First-tier Tribunal appeal, please don’t hesitate to get in touch. You can read client reviews on Trustpilot here and submit an online enquiry here.

Examples of cases we have successfully resolved

2025

South London: the local authority issued a draft selective licence refusal as the landlord had not responded to correspondence. We submitted a representation explaining this was an unintended oversight and asked that the decision be reversed. The council agreed and issued a notice of intent to grant the licence (case ref 24/399)

2023

South London: the local authority issued a draft HMO licence with a proposed occupancy limit of one person for this four bedroom property. We prepared a licence representation explaining why the limit was set too low. The council agreed and the occupancy limit was increased to five people comprising four households (case ref: IN1869)

2022
North London: the local authority issued a draft HMO licence with a proposed occupancy limit of three people comprising two households. We prepared a licence representation explaining why the limit was set too low. The council agreed and the occupancy limit was increased to five people comprising three households (case ref: IN1270/46).

2021
North London: the local authority issued a draft HMO licence with a proposed occupancy limit of three people comprising two households. We advised the landlord on a proposed scheme of works to increase the occupancy limit and prepared a licence representation. The council agreed and the occupancy limit was increased to four people comprising four households (case ref: 224).

South London: the local authority issued a draft HMO licence with a proposed occupancy limit of five people. We prepared a licence representation explaining why the council should allow a couple to live in the largest room. The council agreed and the occupancy limit was increased to six people (case ref: 255).

East London: the local authority granted a selective licence with an occupancy limit of three people. We successfully negotiated for a higher occupancy limit. Whilst we requested a higher limit of four people, the council reissued the licence with an occupancy limit of five people with no alterations to the property (case ref: 266).

North London: the local authority insisted the landlord must apply for an HMO licence costing over £1,000. We reviewed the case and determined no licence was needed. We liaised directly with the council and they agreed with our view that no licence was needed (case ref: IN1188).

South London: landlord applied for an additional licence for a four person HMO. They received a draft selective restricting occupancy to a single household. Helped landlord to negotiate with the council. Prepared a licence representation. The matter was resolved and an additional licence granted allowing occupancy by four people (case ref: IN1155).

2020
North London: additional licence. Draft licence with an occupancy limit of three people in two households. Helped landlord negotiate with the council whilst improving the internal layout. A revised occupancy limit of four people in four households was agreed (case ref: 224)

2019
South East England: mandatory HMO licence. Council proposed adding a licence condition requiring wash hand basins in every bedroom. We successfully negotiated for the proposed licence condition to be removed (read here)

South East London: selective licence. Following receipt of a draft licence, we helped our client negotiate for three licence conditions to be deleted and a fourth condition to be amended (case ref: 158)

West London: mandatory HMO licence. Following receipt of a draft licence, we helped our client negotiate for the maximum occupancy to be increased from five to ten people by negotiating the provision of additional kitchen facilities (case ref: 152)

South East London: additional licence. Following receipt of a draft licence, we helped our client negotiate a five year licence and an 18 month period to resolve an occupied but undersized bedroom (ref: 138)

North West England: mandatory HMO licence. Following receipt of a draft licence proposing to exclude two bedrooms from use as they were considered too small, we helped out client negotiate for all six bedrooms to be occupied

2018
South East London: additional licence. Following receipt of a notice of intention to refuse the licence as the kitchen was deemed too small for three sharers, we helped our client negotiate for the decision to be reversed and the licence was approved (case ref: 81)

North East London: additional licence. Following receipt of a draft licence, we helped our client negotiate changes to various licence conditions that were not appropriate to the nature and occupancy of the property (case ref: 48)

2017
North West London: additional licence. Following receipt of a draft licence that restricted occupation to nil occupants, we helped our client negotiate a scheme of works which resulted in occupancy being increased to five people (case ref: 7)