New licensing scheme launched for shared rented properties

Landlords in Reading may now need a licence for shared rented homes under a new borough-wide scheme, which came into effect on 1 March 2026.

The Additional Licensing scheme applies to certain houses in multiple occupation (HMOs) not covered by the national mandatory licensing scheme. It is aimed at improving properties for Reading renters and is now in force, requiring more landlords of privately rented homes to obtain a licence.

Which properties need a licence?

Landlords must apply for an Additional Licence if their property:

• is occupied by three or four people
• forms two or more households (for example, three unrelated friends, or a couple sharing with another person); and 
• has shared facilities such as a kitchen or bathroom

The scheme applies to flats and houses of any size or number of storeys.

Applying for a licence

Landlords of affected properties must apply by 31 May to avoid possible enforcement action or a late application fee.

Applications require:

• safety and compliance documents
• payment of the licence fee
• agreement to licence conditions

A separate licence is needed for each qualifying property.

Licence fees and inspections

The licence fee is £1,500 for up to five years, split into two payments of £750:

• £750 payable on submission of the application 
• £750 payable when the draft licence is issued 

All licensed properties will be inspected to check they meet the required standards.

Reading Borough Council has appointed Home Safe to help manage applications, inspections, and compliance activity.

Failing to comply

Landlords who fail to apply could face:

• a £250 late application surcharge
• civil penalties of up to £30,000 per offence
• prosecution and an unlimited fine

Support

Home Safe is holding support sessions at the Civic Centre on 21 May for landlords who need help with applications.

Further information

More information on eligibility and how to apply is available via the Council’s website at www.reading.gov.uk/hmo  and the Home Safe application portal https://home-safe.org.uk/landlords/licence-schemes 

Comments

Matt Yeo, Lead Councillor for Housing at Reading Borough Council said:  

We know that Reading is home to a high number of rental properties, which is why the Council intends to do all it can to further drive up living standards for the many thousands of tenants who live in them.

Our additional licensing scheme aims to improve property conditions, increase our ability to enforce better private rented standards and target areas where we anticipate the most issues. We are pleased with engagement from the sector to date.  We are reminding landlords and agents that it is a criminal offence for an agent to operate or manage a licensable property without a valid licence in place.

Mike Brook, Scheme Manager at Home Safe, said:

We are pleased to be working in partnership with Reading Borough Council to deliver its Additional Licensing Scheme. Our role is to support a clear and straightforward application process, while helping ensure properties meet the required standards. 

Guidance for landlords and agents, together with the online application portal, is available on the Home Safe website. We urge anyone who believes their property falls within the scope of the scheme to review the criteria and to submit an application as soon as possible. If you are unsure whether your property falls within the scope of the scheme, you should contact Reading Borough Council or Home Safe for guidance.