THE PROPERTY FILTER TAKE
Telford and Wrekin Council revoked its additional HMO licensing scheme for three and four-person shared houses, with effect from 15 September 2026.
Smaller HMOs in the borough no longer need a £1,522 additional licence, but mandatory licensing for five or more occupants still applies.
Consider checking whether you are owed a refund on an additional licence application, and diarising the 14 March 2027 West Midlands registration deadline.
Landlords of three and four-person shared houses in Telford and Wrekin no longer need an additional HMO (house in multiple occupation) licence. The council revoked its borough-wide scheme on 11 September 2026, and the designation ceased to have effect at 00:01 on 15 September 2026, according to the council's instrument of revocation. This is one council's decision in England, not a change to national rules.
What has Telford and Wrekin Council revoked?
The council made the designation on 14 May 2026 under section 56 of the Housing Act 2004, covering the entire borough. It had an effective date of 25 August 2026, according to the council's public notice of revocation. It was varied by an addendum dated 28 August 2026. Both versions are now revoked.
The scheme targeted HMOs with three or four tenants, which mandatory licensing does not cover (Telford & Wrekin Council newsroom, May 2026). The licence fee was £1,522 per licence, with a 10% early bird reduction for valid applications submitted by 24 August, according to the NRLA's August 2026 licensing blog. Its stated effective date of 25 August fell 21 days before the revocation took effect.
If you have already applied, the council says you "will be contacted shortly with information and a refund if applicable" (Telford & Wrekin Council HMO page, updated 15 September 2026). No refund amounts or dates have been published.
Who still needs an HMO licence in Telford?
Mandatory licensing is untouched. A privately let property with five or more occupants, forming two or more households, is an HMO and requires a mandatory licence (Telford & Wrekin Council HMO page). The council's fee for a five-occupant HMO is £1,522.42, rising to £1,873.77 for 21 or more occupants.
The penalty for non-compliance is serious. Operating a licensable HMO without a licence carries an unlimited fine in the criminal courts, or a civil penalty of up to £40,000, according to the same council page. If you are weighing an HMO purchase in the borough, our free HMO valuation calculator shows how licensing status feeds into value.
Planning rules are also tightening. An Article 4 Direction (an order removing permitted development rights, so a change of use needs planning permission) was confirmed on 26 February 2026. It takes effect on 27 February 2027, after which every change from a family home to an HMO needs planning permission, the council states. The council told The Negotiator it will review additional licensing again in 2027. Our property investment strategies guides explain how Article 4 changes HMO planning.
Why did the council revoke the scheme, and what comes next?
The National Residential Landlords Association (NRLA) issued a letter before claim (a formal warning of legal action) on 19 August. It argued the consultation was "so unfair as to be unlawful" (The Negotiator). Section 56 of the Housing Act 2004 requires a council to take reasonable steps to consult affected people before designating (legislation.gov.uk). The NRLA said Telford failed to publicise the designation properly and failed to provide key consultation documents (NRLA, as reported by Property Reporter).
The council's formal reasons are different. Its instrument cites the need for clarity about the designation's status and operative date, and likely timescales to implementation. It also cites avoiding unnecessary costs to the council and reviewing other local and national HMO measures. A council spokesperson told The Negotiator it did not believe the challenge "diminishes the thoroughness of the consultation process".
Ben Beadle, chief executive of the NRLA, called it "a major win for landlords". He said it "sends a message to councils across the country: if you do not exercise your powers within the limits of the law, you will be challenged."
The next deadline you need to know is national. Under the Renters' Rights Act 2025, the "Register your rental property" service starts in the West Midlands on 15 December 2026. The deadline to register is 14 March 2027, and the annual fee is £65 per property (GOV.UK Housing Hub). The council told The Negotiator it welcomed the West Midlands being among the first areas required to register. Our free property resources cover the wider Renters' Rights Act changes.
Key takeaways
Telford and Wrekin Council's additional HMO licensing designation ceased to have effect at 00:01 on 15 September 2026, 21 days after its stated effective date of 25 August.
Three and four-person HMOs in the borough no longer need the £1,522 additional licence; applicants may receive a refund, the council says.
Mandatory HMO licensing still applies to properties with five or more occupants from two or more households, with civil penalties of up to £40,000.
An Article 4 Direction takes effect on 27 February 2027, requiring planning permission for every new HMO in the borough.
Landlords with let properties in the West Midlands must register on the national service by 14 March 2027, once it opens on 15 December 2026, at £65 per property per year.
Frequently asked questions
Do I need an additional HMO licence in Telford now?
Will I get my licence fee back?
Is this a government U-turn on HMO licensing?
Could Telford bring additional licensing back?
When do landlords with let properties in Telford need to register on the national database?
