Houses in multiple occupation (HMO) - application fees
New licence application fees 2024-25
The total fee for a new licence is £1,353. It is valid for up to five years (though it can be shorter under some circumstances) - after this, an application must be made to renew the licence.
The fee is payable in two stages:
- The first payment of £804 must be made at the time of application.
- The second payment of £549 must be made when you have been sent your draft licence. This must be paid within 21 days or your full licence will not be granted.
The owner or manager of the HMO is responsible for ensuring a licensing application is made.
It is a legal offence not to be licensed, and can result in either:
- An unlimited fine if convicted in the Magistrates Court
- A civil penalty imposed by the Council of up to £30,000. We are very robust in enforcing this requirement.
Renewal applications 2024-25
The fee to renew a licence (where there has been no significant change to the building or occupancy) is £949. A renewed licence is usually valid for up to 5 years (though it can be shorter under some circumstances), following which an application must be made for further renewal.
The renewal fee is payable in two stages:
- The first payment of £670 must be made at the time of application.
- The second payment of £309 must be made when you have been sent your draft licence. This must be paid within 21 days or your full licence will not be granted.
The fee to renew a licence (unless there has been a significant change to the building or occupancy) is reduced as there is less clerical work to do when processing the licence.
The licensee is responsible for making sure an application is made to renew a licence before it has expired.
It is a legal offence not to be licensed, and can result in either:
- An unlimited fine if convicted in the Magistrates Court
- A civil penalty imposed by the Council of up to £30,000. We are very robust in enforcing this requirement.
If a licence is revoked at any time before the licence expires, the fee paid is non-refundable.
Fee calculations and discounts
Calculating the fee
The total fee is made up of:
- the costs associated with the processing of the application
- the costs involved in the running of the scheme per licensee.
If you would like more information on how we do this, please email housing.standards@derby.gov.uk.
Discounts
If multiple applications are made by the same person or company at the same time:
- The full fee is payable for the first application.
- A discount of £100 is applied to each additional application.
Making a payment
The first part of the fee must be paid at the same time as the application, and the second part of the fee paid within 21 days of you receiving your draft licence.
Refused applications and shorter licences
Refused applications
If an application is refused because the licensee is not considered to be 'fit and proper', you will only be charged for the processing work undertaken to the point of refusal.
If this happens, somebody else deemed to be 'fit and proper’ will have to be set as the licensee. If they can't be found, we have a duty to take over the management of the house.
Licences for less than 5 years
Licences may be issued for less than five years in certain circumstances, such as if we have significant concerns about the management standards in a property.
The cost of the licence in these circumstances will consist of:
- The first part of the fee (costs associated with the application processing).
- A proportionate amount of the scheme running costs (the second part of the fee)
For example, if we issue a licence for three years instead of five, the second part of the fee will be 60% of the running costs for five years.
If we decide to renew a licence for five years after the initial shorter period, the applicant will have to pay the full renewal fee payable at that particular time.
More information
If you have any queries, please contact housing.standards@derby.gov.uk.