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Landlord Licensing in Peterborough: Mandatory, Selective & Additional HMO Licensing Explained

Name: Landlord Licensing in Peterborough: Mandatory, Selective & Additional HMO Licensing Explained
Brand: Progressive Lets
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By Wayne Beecham | Created on 8th September 2026

A large part of the private rented sector in Peterborough is formed by HMOs (Houses in Multiple Occupation), providing housing to students, young professionals and those looking for more affordable accommodation compared to individually renting a property.

For landlords, renting out an HMO property can deliver bigger rental yields but there are some extra responsibilities and licensing requirements to work through.

There have been some significant changes to landlord licensing in Peterborough over the last few years and now landlords must navigate three overlapping licensing schemes.

We provide updated guidance on HMO licensing in Peterborough, including licensing criteria and fees.

What is an HMO?

An HMO is defined by Peterborough City Council as being occupied by ‘five or more persons who form two or more households, and who share basic amenities such as a kitchen, bathroom and toilet’. It’s sometimes known as a house share.

(A ‘household’ would be a single person, a couple, or a group of people who are directly related.)

HMOs can vary from a bed-sit where each room has its own kitchen but shares a bathroom, to lettings where each person has their own room but shares kitchen and bathroom facilities.

Landlords or property managers are expected to ‘conduct appropriate checks’ to be confident about whether their property is a single let or an HMO.

Mandatory HMO Licensing in Peterborough: Fees, Penalties & How to Apply

The fee for mandatory HMO licences is currently £1,100 (split across two payment stages) and the licence runs for five years.

Applying for a licence

You can apply for a licence online but it’s important to fill everything in correctly, and you have to pay the application fee. If the council is not happy that all the boxes have been ticked, you may have to apply again, and you will not get your application fee back and will have to pay a new fee on top.

Anyone can apply but must nominate a person or company to be the licence holder. This could be the property owner or the managing agent.

Penalties for avoiding getting a licence

If a mandatory licence is required, it’s important to get one, as running an HMO without a licence could attract a civil penalty of £40,000, or an unlimited fine in the courts. The fine limit increased on 1 May 2026 from £30,000 to £40,000 under the Renters’ Rights Act.

If a landlord or manager is convicted of not holding the correct licence, they may be deemed not a ‘fit and proper person’ and they may not be allowed to operate an HMO anywhere in England.

Another sting in the tail is that courts could make a rent repayment order which could mean paying back all rents received over the last two years (this has increased from a limit of 1 year).

However, as long as landlords or lettings managers get everything right, HMOs can be very lucrative.

Selective Licensing in Peterborough

The Selective Licensing scheme was reintroduced by Peterborough City Council on 11 March 2024. The scheme previously ran from 2016 to 2021 but lapsed. Now it has been relaunched and runs until 10 March 2029.

Selective Licensing provides local authorities with greater control over the private rented sector, aiming to tackle issues like anti-social behaviour and poor housing conditions.

The application fee is £908 (split across two payment stages) and the penalty for not having a selective licence is up to a £40,000 civil penalty.

The scheme runs across the following designated areas:

Bretton
Central
East
Fletton and Stanground
Fletton and Woodston
North
Orton Waterville
Park
Paston and Walton
Stanground South

Since the scheme relaunched, over 7,000 applications have been submitted, with more than 6,400 licences issued. Peterborough City Council conducts two rounds of property inspections within the 5-year licence duration and penalties for not having a licence are strongly enforced.

The application for a Selective Licence generally requires:

A written tenancy agreement and tenant information pack
Annual gas safety checks and five-yearly electrical (EICR) checks
Working smoke alarms and carbon monoxide detectors
Prompt action on anti-social behaviour reports

The full conditions attached to a licence application are listed on the Peterborough City Council website.

Additional HMO Licensing: What’s Changed Since 2023

On 26 January 2026, Peterborough City Council introduced the new, city-wide Additional HMO Licensing scheme that runs until 25 January 2031. The launch of the scheme followed on from a public consultation and Cabinet approval that happened on 2 October 2025.

The application fee for Additional Licences is £1,100, paid across two parts.

Additional Licences are required for smaller HMOs that do not meet the Mandatory Licence requirements, specifically, HMOs that are occupied by three or four unrelated people sharing facilities. There are also a small number of Section 257 HMOs (buildings converted into flats that don’t meet 1991 Building Regulations standards) that require an Additional Licence.

To support landlords in the transition over to the new licensing requirements in Peterborough, where a Selective Licence was already issued but the property now meets Additional Licensing requirements (3-4 person properties), the licence is converted to an Additional Licence. This does not incur an additional fee and another application is not required.

The deadline for applying for an Additional Licence for existing qualifying properties was 26 April 2026, so landlords with unlicensed rented properties can face a financial penalty of up to £40,000 from this date.

Which Licence Do I Need?: Peterborough Landlord Licensing Comparison Table

Licence type	Properties covered	Area
Mandatory HMO Licensing	HMOs with 5+ occupants from 2+ households sharing facilities	City-wide	Ongoing – national scheme
Selective Licensing	Privately rented properties that fall within the designated areas	Designated areas only	11 Mar 2024 – 10 Mar 2029
Additional HMO Licensing	HMOs with 3–4 unrelated occupants sharing facilities, plus qualifying Section 257 HMOs	Citywide	26 Jan 2026 – 25 Jan 2031

Fit and Proper Persons checks explained

You must ensure the house is suitable for the number of tenants and the owner/manager is a fit and proper person, which usually means no criminal records or breach of landlord laws. The fit-and-proper person test applies consistently across all three licence types and not just the Mandatory Licence scheme.

The council must also be sent an updated gas safety certificate every year and be provided with electrical safety licenses for wiring and all appliances.

There are also various conditions relating to fire safety.

What Happens If You Don’t Have the Right Licence?

There are several serious consequences for landlords found to be renting a property out without the right licence. Running an unlicensed rented property can result in enforcement actions such as:

Civil penalties of up to £40,000
Unlimited court fines
Rent repayment orders of up to 24 months’ rent payments
Losing ‘fit-and-proper’ status on future licence applications

You can find further information about enforcement action in the public warning published by Peterborough City Council before the Additional Licensing scheme was introduced.

Award-winning Services

Here at Progressive Lets, we have extended our award-winning services to include profitable HMO management across Cambridgeshire, Northamptonshire and Lincolnshire.

If you currently have an HMO, or are looking to source your first or next one, we are here to help every step of the way. Please don’t hesitate to contact us.

Frequently Asked Questions

Do I need an HMO licence if all my tenants are related to each other?

No. A property only becomes an HMO if it houses two or more separate households, and Peterborough defines a household as a single person, a couple, or a group of directly related people. A house let entirely to one family or one related group falls outside HMO licensing altogether, however many people live there.

What could make a landlord fail the fit and proper person test?

Common grounds include unspent convictions for violence, dishonesty, drugs or sexual offences, breaches of landlord-tenant law, discrimination findings, or a history of illegal eviction or licence refusal. The council can assess this at application and again at renewal, so a clean record needs maintaining throughout the licence term, not just when applying.

What happens if my Selective Licence property later qualifies for Additional Licensing?

Peterborough City Council converts an existing Selective Licence into an Additional Licence automatically if the property becomes a 3-4 person HMO, with no new fee or fresh application needed. Landlords still need to notify the council when occupancy changes, so the correct licence type is recorded against the property.

What’s a Section 257 HMO and how does it differ from a standard HMO?

A Section 257 HMO is a building converted into self-contained flats before building regulations from 1991 came into effect, and which doesn’t meet those conversion standards, rather than a house shared by unrelated tenants. In Peterborough, qualifying Section 257 properties fall under Additional Licensing even though they don’t resemble a typical shared house.

Do I need planning permission for an HMO in Peterborough as well as a licence?

Possibly, depending on location. Peterborough introduced an Article 4 Direction covering Fletton and Woodston, the Hamptons and Park Ward, removing permitted development rights so converting a house into a small HMO needs planning permission in those areas. Licensing and planning are separate systems, so holding one doesn’t exempt a landlord from the other.

Can a landlord appeal if Peterborough City Council refuses an HMO licence application?

Yes. A landlord can appeal a refusal, condition or revocation to the First-tier Tribunal (Property Chamber), usually within 28 days of the council’s decision. Requesting the council’s reasoning in writing first is worthwhile, since many issues get resolved informally before a formal appeal becomes necessary.

Does holding an HMO licence affect a landlord’s insurance?

Yes, in most cases. Many landlord and HMO insurance policies require a valid licence as a condition of cover, and running an unlicensed HMO can give an insurer grounds to void a claim entirely. Landlords should check their policy wording and confirm licensing status with their insurer whenever a property’s occupancy changes.

Can a letting agent handle HMO licensing on my behalf?

Yes. Many landlords instruct a letting or HMO management agent to prepare licence applications, coordinate the required gas, electrical and fire safety checks, and track renewal dates across overlapping schemes. Progressive Lets manages HMO compliance and licensing for landlords across Peterborough and the wider region, and can advise on which scheme applies to a specific property.

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Wayne Beecham

Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.

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Landlord Licensing in Peterborough: Mandatory, Selective & Additional HMO Licensing Explained

What is an HMO?