Short answer
Birmingham landlords work with us remotely; our office is in Blackburn and visits are by appointment. Since 5 June 2023, privately rented homes in 25 of the city's 69 wards need a £700 selective licence, and HMOs with three or four occupants need a £755 additional licence. Every new small HMO in the city has also needed planning consent since 8 June 2020.
Local rules checked against council and government pages.
Which Birmingham licence does my property need?
One of three, depending on who lives there and where it is. A property never needs both an HMO licence and a selective licence.
| Licence | Applies to | Fee |
|---|---|---|
| Selective | Privately rented homes in 25 of 69 wards, from 5 June 2023 | £700, up to 5 years |
| Additional HMO | HMOs with 3 or 4 occupants from 2 or more households sharing facilities, from 5 June 2023 | £755 per property |
| Mandatory HMO | HMOs with 5 or more occupants from 2 or more households, nationally | Set by the council |
The selective scheme exempts properties already licensed as HMOs, those managed by an educational establishment and those let by housing associations (Birmingham City Council). The council has an online checker for whether your ward is covered. The additional HMO licence is set out separately (Birmingham City Council), and the national rules are on GOV.UK.
Do I need planning permission for an HMO in Birmingham?
Yes, anywhere in the city. Since 8 June 2020, a planning application has been needed before a family home is let as a shared house for three to six people (Birmingham City Council).
Before 2020 that change needed no permission. HMOs that were already lawfully in use keep that use, so ask for evidence of the HMO's history when you buy one.
How are Birmingham licence and HMO costs taxed?
- Licence fees, selective or HMO, are allowable expenses of the letting business.
- Safety and management costs needed to meet licence conditions, such as gas and electrical checks and fire alarm servicing, are allowable.
- Furniture and appliances replaced in rooms or shared kitchens qualify for replacement of domestic items relief. The first purchase for a new HMO does not.
- Stamp Duty at the higher rates for additional dwellings applies when an individual landlord buys another home, HMOs included (GOV.UK). It is added to the cost for Capital Gains Tax, not deducted from rent.
Does Birmingham charge extra council tax on second homes?
From 1 April 2025, Birmingham charges a 100% premium on second homes, which doubles the bill (Birmingham City Council).
Unfurnished homes empty for a year or more have paid a 100% premium since 1 April 2024. It rises to 200% after 5 years and 300% after 10 years. Council tax a landlord pays during a gap between tenants is an allowable expense.
How we work with Birmingham landlords
Our only office is in Blackburn (72 St James's Road, Blackburn BB1 8ET), so Birmingham landlords work with us at a distance. You upload licence invoices, agent statements and receipts securely, and we prepare the accounts and walk you through them on a video call.
You are welcome to visit by appointment if you would rather meet.
Questions from Birmingham landlords
Is my Birmingham property in a selective licensing ward?
Use the council's ward checker on its selective licensing page, with the full postcode. Check every property separately, as neighbouring streets can fall in different wards.
I let a Birmingham house to four sharers. Which licence do I need?
An additional HMO licence, at £755, if the four are from two or more households sharing a kitchen or bathroom. You do not need a selective licence as well.
Should I hold Birmingham HMOs in a limited company?
It depends on your income, your borrowing and whether you are buying or already own the properties. Moving existing HMOs into a company can trigger Stamp Duty and Capital Gains Tax. Our portfolio planning service runs both sets of numbers.
Do I have to come to Blackburn to work with you?
No. Birmingham landlords work with us by phone, video and secure upload. You are welcome at our office by appointment.
Official sources
- Selective licensing Birmingham City Council
- Additional licensing for HMOs Birmingham City Council
- City-wide Article 4 Direction relating to houses in multiple occupation Birmingham City Council
- Council tax premium charges Birmingham City Council
- House in multiple occupation licence GOV.UK
- Stamp Duty Land Tax: residential property rates (higher rates for additional dwellings) GOV.UK
Figures were checked against these sources on . Tax rules change: check the source or ask us before acting.
Please note: council schemes, fees and boundaries change, and some of the rules above are proposals or consultations. This page is general information at the date shown, not advice. Check the council's own page for your address, or ask us, before acting.