Peterborough City Council has launched a sweeping new housing crackdown that will affect an estimated 2,000 privately rented properties across the city. From 26 January 2026, landlords renting out certain shared homes must hold an Additional HMO Licence, or risk facing unlimited fines, rent repayment orders, and possible council takeover of their properties.
The new rules form part of the council’s Additional HMO Licensing Scheme, introduced under the Housing Act 2004, and will remain in force until 25 January 2031, unless revoked earlier.
What’s changed – and why it matters
Until now, national rules only required a licence for larger HMOs housing five or more people. Peterborough’s new scheme goes further.
Under the expanded rules, landlords now need a licence if their property is rented to:
- Three or four people
- Who are not all related
- And who share a kitchen, bathroom or toilet
This means many smaller shared houses, bedsits and privately rented homes that previously operated outside licensing rules are now firmly in scope.
The council says the move is designed to raise housing standards, improve safety, and tackle persistent problems such as poor management, overcrowding, waste dumping and anti-social behaviour.
Council: “Apply now or face serious consequences”
Peterborough City Council confirmed it approved the scheme on 2 October 2025, with enforcement beginning this month.
A council spokesperson said the authority will maintain a public register of licensed properties and actively pursue non-compliant landlords.
Failure to comply carries severe penalties. A landlord who rents out a property that requires a licence but does not have one can be prosecuted and, if convicted, face an unlimited fine. Breaching the conditions of a licence can also lead to prosecution.
In serious cases, landlords may also be ordered to repay up to 12 months’ rent to tenants, and the council may consider revoking the licence and stepping in to manage the property directly.
Councillor backs tougher enforcement
Councillor Christian Hogg, Cabinet Member for Housing and Regulatory Services, welcomed the scheme’s launch.
“I welcome the introduction of Additional Licensing and the positive effects it will have on our communities,” he said. “It strengthens the work we already do with landlords and gives us a more active role in ensuring private tenants live in homes that are safe, well-managed and of a high standard.”
He urged landlords not to delay. “I would strongly encourage those affected to apply for licences at the earliest opportunity. Our Housing Standards team and Home Safe are always happy to provide guidance and support.”
Section 257 rules target poorly converted flats
The scheme also tightens controls on certain converted buildings.
Freeholders will need an Additional Section 257 HMO Licence if they own a property that:
- Has been converted into self-contained flats
- Does not meet 1991 Building Regulations standards
- And where more than one third of the flats are let on short-term tenancies
These conversions have long been linked to fire risks and poor living conditions, and the council says licensing will allow closer inspection and enforcement.
How landlords can stay compliant
The council has issued clear guidance for landlords and managing agents:
- Check your property
If your property is occupied by three or more people from two or more households who share facilities, it likely needs a licence. - Apply before renting
Applications must be made before operating the property as a licensable HMO. - Meet licence conditions
Licensed properties must comply with safety, maintenance and management standards, which will be set out during the application process. - Stay informed
The council and its partners provide advice via online resources, email and written guidance.
A licence will cost £1,100 and last for five years.
Home Safe partnership rolls out inspections
The scheme is being delivered in partnership with Home Safe, which will manage applications and carry out inspections on behalf of the council.
Mike Brook, Scheme Manager at Home Safe, said: “We’re proud to be supporting the council in raising standards. Help and guidance is available online, and landlords should apply now to ensure they’re compliant.”
Final warning to landlords
With enforcement powers now live and penalties severe, the message from the council is clear: check your property, apply early, and don’t take the risk.
For further details, landlords and agents can contact the council by emailing additional.licensing@peterborough.gov.uk or visiting the council and Home Safe websites.
