Birmingham City Council updated its selective and additional HMO licensing guidance on 13 May 2026, confirming that civil penalty notices now carry a maximum of ?40,000 following the commencement of the Renters' Rights Act on 1 May 2026. The council's ongoing selective licensing scheme (June 2023?June 2028) and citywide additional HMO licensing (3+ occupant properties) remain in force, with heightened enforcement expected.
Birmingham City Council's selective licensing guidance, last updated 13 May 2026, confirms that landlords who fail to obtain the necessary licences may face a civil penalty notice of up to ?40,000, may face criminal prosecution leading to an unlimited fine, and that tenants are entitled to seek repayment of rent through a rent repayment order.
Birmingham City Council currently operates one additional licensing scheme covering the entire city, running from 5 June 2023 until 4 June 2028. Selective licensing requires that all privately rented properties in designated wards must obtain a licence regardless of the number of occupants and households formed. Birmingham also operates a selective licensing scheme running from 5 June 2023 until 4 June 2028.
The rules around the licensing of HMOs changed on 5 June 2023. From that date, a smaller HMO ? a property with three or four occupants ? needs a licence before it can be rented out. Under previous rules, an HMO only required a licence if it was rented to five or more people from different households who shared facilities.
Birmingham City Council's well-documented financial difficulties have created an unexpected compliance dynamic: with the council under pressure to maximise revenue and enforcement officers facing scrutiny over their activity, enforcement of licensing violations and housing standards breaches is expected to increase rather than decrease. Landlords in Birmingham who are not in full compliance ? particularly regarding HMO and selective licensing ? should expect enforcement activity to remain high. This makes compliance more important, not less, during the council's financial recovery period.
Action required
Landlords in Birmingham must hold a valid selective licence (where applicable by ward) and a separate additional HMO licence for any property with three or more occupants not covered by mandatory licensing. Any unlicensed property is now exposed to a civil penalty of up to ?40,000 per offence.
Effective
2026-05-01
This content is for general informational purposes only and does not constitute legal, financial, or professional advice. Always verify information against the original source and seek independent professional guidance before acting on any regulatory matter.