HMO Licence in Reading: Fee, Who Needs One and How to Apply

The fee, from Reading’s own page

'The table shows the fee for a HMO with up to 5 letting rooms/units; a supplement of £28 per additional letting room/unit will be applied. Band Licence fee: Standard rate for new and renewal applications: Part A £1,125, Part B £375, Total £1,500. Late fee (application more than 12 weeks late): Part A £1,375, Part B £375, Total £1,750.' Extra charges: incomplete application £50, missed inspection £52.

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Reading’s new-licence fee sits above the median of the 34 councils whose fee we could read from their own pages (£1,364). The cheapest verified is Islington at £288 and the dearest Lambeth at £2,530; fee structures differ — some charge per room or in occupancy bands, so a large HMO can cost far more than the headline figure above.

Who needs a licence in Reading

The national rule is the same everywhere in England and Wales — gov.uk: “You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply: it is rented to 5 or more people who form more than 1 household; some or all tenants share toilet, bathroom or kitchen facilities; at least 1 tenant pays rent (or their employer pays it for them).” … “A licence is valid for a maximum of 5 years. You must renew your licence before it runs out. You need a separate licence for each HMO you run.” Whether a smaller shared house needs a licence depends on whether the council runs an additional or selective scheme:

Additional licensing (smaller HMOs): yes. Borough-wide (Reading Borough Council Additional Licensing Scheme). Scheme dates: from 2026-03-01. Fee £1,500. Check the scheme map before letting to three or four sharers.

Selective licensing (all private lets in an area): not confirmed either way on the pages we read — check the council’s licensing pages before letting to fewer than five.

Article 4 direction on new HMOs: yes. Reading (see article-4-directions page) Converting a family home into a small HMO in those areas needs planning permission as well as any licence.

Letting a licensable HMO without a licence is an offence; the penalties, rent repayment orders and the fee’s tax treatment are on the HMO licence in England guide.

The Reading numbers around an HMO

• How many HMOs: the council estimated 3,272 HMOs in Reading, of which an unstated number of were mandatory-licensable and 1,193 licences had been issued (LAHS 2024-25, MHCLG) — every council’s figures.
• Rents: the average 4+-bedroom rent in Reading is £2,352 a month (ONS, July 2026) against £1,573 across all sizes — rents, prices and yield in Reading.
• EPC: 38% of EPCs lodged here in the last year were below band C, the level a rented home needs by 1 October 2030 (EPC ratings in Reading).
• Council tax: Band D is £2,613 for 2026/27; in an HMO let room by room the landlord is usually the liable person.

How to apply

Applications go to the council, not to a national body. Have the floor plans, gas and electrical certificates, fire-safety details and the manager’s details ready; most councils take a non-refundable first payment on submission and the balance on grant (the quote above shows where Reading splits its fee, if it does).

Apply or check on Reading’s site

All councils compared · Student HMOs and Ground 4A · Renters’ Rights Act rules