Jonathan Dinsdale, senior associate in law firm Blandy & Blandy’s Dispute Resolution team, looks at the licensing changes being introduced by Reading Borough Council and the implications for landlords and letting or management agents.
Reading’s rental market is undergoing a major change. With the aim of improving housing standards, the management of properties and safety, Reading Borough Council has formally designated a borough-wide ‘Additional Licensing Scheme’ that will fundamentally change how smaller Houses in Multiple Occupation (HMOs) are managed.
What is a house in multiple occupation (HMOs)?
An HMO is a residential property where at least three tenants live together, forming more than one “household” (meaning they aren’t a single family), and share basic amenities like a kitchen, bathroom, or living room. See Reading Borough Council’s ‘Houses in Multiple Occupation Management Pack’ for further information.
What are additional licensing schemes?
Introduced under the Housing Act 2004, additional licensing schemes are a regulatory measure that can be implemented by a local authority (i.e. Reading Borough Council) targeted at shared houses with fewer (typically three to four) occupants than the five-person licensing threshold nationally.
Limited exemptions apply in relation to certain types of properties, namely Section 257 HMOs. See Reading Borough Council’s website for further guidance.
As with all HMOs, rental properties will be required to meet certain standards relative to the number of occupants. Key requirements include minimum bedroom sizes, sufficient kitchen and food storage facilities, and the number of toilets, basins, and washing facilities.
What are the purposes of the proposed licences?
The licenses will contain conditions that license holders must comply with, to help prevent overcrowding, promote the responsible management of HMOs and maintain good housing standards. Additional property specific conditions can also be imposed where this is deemed necessary.
Who needs to be aware of the changes?
Landlords who operate HMOs in the administrative area of Reading and any letting or managing agents they have appointed to manage these properties need to be aware of the changes and indeed take action to ensure that they remain compliant.
What are the deadlines and how to apply?
From 1 March 2026, almost all Houses in Multiple Occupation (HMOs) in the borough will require a licence. Previously, only “large” (five or more people) HMOs were required to have a license. Now, “small” HMOs, with three or four people from two or more households, not already subject to mandatory licensing, must also apply for a license. In most cases, resident landlords (owner-occupiers) who share basic facilities (like a kitchen or bathroom) with up to two lodgers do not need a licence.
Reading Borough Council’s Home Safe application portal went live on 1 February 2026. All letting or managing agents with clients operating HMOs in Reading must register with Home Safe by 1 March 2026 to allow landlords to add their agent to a licence application.
The registration process for landlords opens on 1 March 2026. Once landlords have registered and added details of their relevant properties, they will be able to apply for the licence required to be fully compliant.
Face-to-face guidance sessions are being held at Reading Borough Council’s offices on Thursday 26 February to provide further information, including in relation to who needs to apply, what documentation is required, and how to remain compliant once licensed. For further information on the scheme, visit Reading Borough Council’s website.
Is planning permission required?
The Council will consult the Planning Enforcement team and take into account whether a HMO has planning consent when assessing a licensing application. Areas of the borough (Park, Redlands, and Katesgrove wards) are subject to an ‘Article 4 Direction’ that has removed permitted development (PD) rights to convert family homes into small HMOs. Any landlords are advised to contact Reading Borough Council for further information regarding planning.
How much will a license cost?
Obtaining an additional licence for an HMO costs £1,500, the same as a mandatory HMO license for a five-bedroom property. This fee is split into two parts:
Part A (application processing) £750 submitted with application
Part B (maintenance of the scheme) £750 once draft licence is issued
How long will a license be valid for?
Licences can be granted for a period of up to five years but the Council may grant shorter licenses in certain situations.
Failure to comply
Operating without a licence after March 2026 is a criminal offence, potentially leading to:
Unlimited fines or Civil Penalty Notices up to £30,000.
Rent Repayment Orders (RROs), where a landlord may have to pay back up to 12 months of rent to tenants.
Landlords will be unable to serve a valid Section 21 notice to evict tenants while a property remains unlicensed.
A property may be subject to increased inspections and enforcement, and additional fines imposed by Reading Borough Council.
Future changes
Following these changes, taking effect from 1 March 2026, Reading Borough Council is also proposing to introduce selective licensing schemes, under the Housing Act 2004, in specific areas of the borough. It has highlighted Battle Park and Redlands wards as being under current consideration.
Selective licensing allows a local authority to target specific areas where housing standards are a known issue.
If introduced in the borough, it will apply to all privately rented properties (houses and flats) occupied by a single household in selective licensing scheme areas.
For further information or legal advice, please visit www.blandy.co.uk.
