A new licensing scheme for HMOs, agreed by leaders of Portsmouth council, will be implemented from September 1 2023.

Licensing of HMOs will be extended to smaller ones with three or four occupants. Currently, only HMOs with five or more occupants require a licence.

Smaller HMOs which are seen to be well managed during the licence application process will be given a licence for up to five years. 

The five year licence costs £746 per year; a two and a half year licence works out at £772 a year; or £1,035 for a one-year licence. The council describes the licence fee as equating to “about” £2.86 per week per property over five years.

Some 4,000 additional properties are expected to be included in the new licensing regime, which has been sharply criticised by local landlords and others, who have said it will deter the letting of smaller HMOs.

A council spokesperson says: “We are grateful to more than 1,000 people who responded to the public consultation, and unsurprisingly there were some strong views expressed from our city’s landlords.

“We’ve listened to their concerns, particularly about the burden that licences put on landlords who are already providing excellent homes for their tenants.

“One aspect of the policy change we will debate will be introducing a tiered approach to these new licences if we decide to implement them. This would allow landlords we see providing good properties to hold licences for longer, cost them less and with fewer inspections than those who perform poorly and require regular review.”