LetLens / Licensing by council / Arun
Landlord licensing in Arun
Mandatory HMO licensing applies across England, so a property in Arun let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Arun also runs additional HMO licensing, which can bring smaller HMOs, or every private rental, into licensing.
The licence you need turns on who lives in the property. Find the line that describes your let.
- Required by national lawThe same in all 296 English councils. Not an Arun decision.
Your propertyLet to 5 or more people forming 2 or more households who share a kitchen, bathroom or toilet
You needMandatory HMO licence In force England-wide
It costs£2,387 for a 5-bedroom HMO£2387 base + £50/occupant over 5
WhereEverywhere in Arun, as everywhere in England. Scope, fee schedule and source
- What Arun requires on topSchemes this council chose to run, and what differs from the council next door.
Your propertyA smaller shared house the national scheme does not reach, typically 3 or 4 sharers forming 2 or more households
You needAdditional HMO licence In force
It costs£2,347, the same for an HMO of any size
Where3 designated wards, not the whole of Arun. Scope, fee schedule and source
Your propertyLet privately inside a designated area, whether or not it is an HMO
You needNo selective licence No scheme
- Planning permission, a separate questionNot licensing. Whether you may create an HMO at all, decided by the council’s planning side.
Your planConverting a house (use class C3) into a small HMO (use class C4)
You needPlanning permission In force in part of the council (14.7%)
WhereInside the designated area: Marine (Bognor Regis), Hotham (Bognor Regis) and River (Littlehampton). Outside it the right still applies. The direction, its dates and its boundary
Each fee is for the example property named on its own line, from the council’s published schedule. Other sizes are priced separately; the full schedules, discounts and surcharges are below.
Or open BN18 0TG, a postcode near the centre of Arun, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Arun, in the council’s own words, with the designations in force, the whole published fee schedule and the source for every figure. The three regimes can stack: a property can need a licence under one and still be caught by another.
Mandatory HMO licensing In force England-wide
Fee, 5-bed HMO£2,387£2387 base + £50/occupant over 5
- Where it applies
- National scheme
- Which properties
- HMO rented to 5 or more people forming 2 or more households who share a toilet, washing or cooking facilities (mandatory HMO licensing, s55/s254-257 Housing Act 2004)
The published fee schedule
- Base fee
- £2,387
- Base fee, paid in two parts
- £1,942 on application, then £445 when the licence is granted
- Size charge
- £50 per occupant above 5
- Licence term
- Up to 5 years
- Fee schedule dated
- April 2026
Other charges
- HMO licence pre-application advice (up to 2 hours, then £81/hr): £180
- Online assistance completing HMO licence application, per hour: £81
- Requested Private Sector Housing advice to meet standards (up to 2 hours, then £81/hr): £180
- Immigration inspections (up to 2 hours, then £81/hr) - inspection and report: £180
- Supplying a copy of documentation (e.g. HMO licence, formal notice) - inspection and report: £25
Additional HMO licensing In force
Licence fee, any size£2,347
- Where it applies
- 3 designated wards
- Which properties
- Any HMO in the designated wards that is NOT subject to mandatory licensing - i.e. HMOs occupied by 3 or 4 persons forming 2 or more households sharing amenities, AND section 257 HMOs (converted blocks of flats where <2/3 owner-occupied and the conversion did not comply with the 1991 Building Regulations), irrespective of the number of storeys; excludes properties listed in Schedule 14 Housing Act 2004
- Designations in force
- Arun District Council Additional HMO Licensing Scheme Designation 2024
- Designation period
- 1 February 2025 to 31 January 2030
Arun District Council Additional HMO Licensing Scheme Designation 2024 covers Hotham, Marine, River.
The published fee schedule
- Fee
- £2,347
- Paid in two parts
- £1,902 on application, then £445 when the licence is granted
- Licence term
- Up to 5 years
- Fee schedule dated
- April 2026
Other charges
- Section 257 building - up to 6 flats: Part 1: £2,023
- Section 257 building - up to 6 flats: total (Part 1 + Part 2 £445): £2,468
- Section 257 building - more than 6 flats: Part 1: £2,144
- Section 257 building - more than 6 flats: total (Part 1 + Part 2 £445): £2,589
- Section 254 converted building (mixed-use, non-self-contained/self-contained units): Part 1: £1,942
- Section 254 converted building: total (Part 1 + Part 2 £445): £2,387
Selective licensing No scheme
Article 4 and HMO planning permission in Arun In force in part of the council (14.7%)
An HMO Article 4 direction is in force in Arun covering Marine (Bognor Regis), Hotham (Bognor Regis) and River (Littlehampton), so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. We hold 761 of Arun's 5,185 postcodes inside a designated area, about 14.7% of the council. Most of the council is outside it, so the right still applies to the majority of addresses here.
HMO Article 4 direction, Marine (Bognor Regis), Hotham (Bognor Regis) and River (Littlehampton)
- Area
- Marine (Bognor Regis), Hotham (Bognor Regis) and River (Littlehampton)
- Right removed
- C3 to C4 (small HMO)
- In force from
- 19 January 2023
A licence is not planning permission
These are two separate consents from two separate parts of the council, and getting one does not give you the other. A licensing team can grant an HMO licence for a property that needed planning permission and never got it.
Where the permission was needed and is missing, the usual consequence lands on the licence. Councils commonly grant a short licence, often twelve months rather than the full term, to give the owner time to apply. If permission is not applied for, is refused, or an appeal fails, the council will generally refuse to extend and let the licence expire, and will generally refuse a fresh application outright once permission has been finally refused. At that point the property cannot lawfully be let as an HMO at all.
This is council practice rather than a statutory rule, and it varies, so confirm it with Arun before you rely on it. Nottingham City Council publishes its version explicitly and is quoted here as a worked example of the approach.
The research note behind this verdict
What happens if you let without a licence
Letting or managing an unlicensed property that needs a licence is a criminal offence, under section 72 of the Housing Act 2004 for an HMO and section 95 for a property caught by selective licensing. A council can prosecute, or impose a civil penalty instead. For conduct on or after 1 May 2026 that penalty can be up to £40,000 per offence, raised from £30,000 by the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026. Tenants and the council can also apply for a rent repayment order, which for conduct from the same date can claw back up to two years of rent, up from one, under section 103 of the Renters' Rights Act 2025.
Both of those maxima apply only to conduct on or after 1 May 2026. Earlier conduct is still judged against the old £30,000 and twelve-month limits. Each breach is normally penalised separately, so an unlicensed portfolio in Arun multiplies the exposure rather than capping it.
The letting market in Arun
Licensing is only one side of the sum. These are medians from real listings we have collected, with the number of listings behind each one, because a median over a handful of adverts is a different claim from a median over hundreds.
- Median room rent£668 pcmFrom 128 room listings in Arun.
- Median whole-property rent£1,251 pcmFrom 91 whole-property listings.
- Typical 4-bed rent£2,084 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+60%Five rooms let individually against one four-bedroom whole-property let, before the extra cost, licensing and voids that come with an HMO.
- Median sale price£335,000Across 653 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let4.5%Median whole-property rent for a year against the median sale price. Before voids, management, repairs, licensing and finance, all of which a real return has to carry.
- Gross yield, 5-room HMO12.0%Five rooms at the median room rent against the same median sale price. The higher figure is what pays for the licence, the extra management and the higher voids, rather than being profit on top of them.
- Typical household income£38,868Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure8.6%444 of 5,185 indexed postcodes.
- Postcodes in Flood Zone 3321 (6.2%)The Environment Agency's highest-probability zone. Lenders and insurers ask about this one by name, and it is a subset of the exposure above.
Room rent by outcode
Room rent is fairly even across Arun’s outcodes, which is worth knowing too: the council-wide median above travels reasonably well here.
| Outcode | Median room rent | Room listings | Check a postcode |
|---|---|---|---|
| PO22 | £694 pcm | 20 | Check PO22 |
| PO21 | £675 pcm | 47 | Check PO21 |
| BN17 | £650 pcm | 30 | Check BN17 |
Postcode districts in Arun
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 5,185 Arun postcodes. Open one of its postcode districts to see the verdict, the local rent evidence and the investment model.
Common questions
Do I need an HMO licence in Arun?
Mandatory HMO licensing applies across England, so a property in Arun let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Arun also runs additional HMO licensing, which can bring smaller HMOs, or every private rental, into licensing. Additional HMO licensing covers 3 designated wards.
How much does an HMO licence cost in Arun?
£2,387 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £2387 base + £50/occupant over 5. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Arun?
An HMO Article 4 direction is in force in Arun covering Marine (Bognor Regis), Hotham (Bognor Regis) and River (Littlehampton), so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. We hold 761 of Arun's 5,185 postcodes inside a designated area, about 14.7% of the council. Most of the council is outside it, so the right still applies to the majority of addresses here.
Which wards in Arun are covered by licensing?
Additional HMO licensing under Arun District Council Additional HMO Licensing Scheme Designation 2024 covers Hotham, Marine, River. A designation can cover only part of a named ward, so check the exact address rather than relying on the ward name alone.
What is the penalty for letting an unlicensed property in Arun?
Letting or managing a property that needs a licence without one is a criminal offence under the Housing Act 2004. The council can prosecute or impose a civil penalty, which for conduct on or after 1 May 2026 can be up to £40,000 per offence, raised from £30,000 by the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026. Tenants or the council can also seek a rent repayment order covering up to two years of rent for conduct from that date, up from one year, under section 103 of the Renters' Rights Act 2025. Each breach is normally penalised separately. Indicative only, not legal advice.
Do I need planning permission for an HMO in Arun?
Where an Article 4 direction applies, yes: it removes the permitted-development right to change a house (use class C3) into a small HMO (use class C4), so that change needs a planning application. An HMO for seven or more residents needs permission anywhere, Article 4 or not. Planning is separate from licensing, and a licence does not give you permission. Where permission was needed and not obtained, councils commonly grant a licence for about twelve months rather than the full term, and generally refuse to extend it if permission is not then granted, which leaves the property unable to be let as an HMO. Practice varies by council, so confirm it with Arun.
Can I convert a house into a small HMO in Arun without planning permission?
Not inside the Article 4 area. The direction removes the permitted-development right, so a change of use from C3 to C4 needs a planning application. Outside the designated area the right still applies. Check the exact address against the boundary before you commit.
About Arun
Arun is a local housing authority in South East, with a population of about 161,000 and 5,185 live postcodes indexed by LetLens. It is the licensing authority for every private rented property inside its boundary, and the local planning authority that decides whether an Article 4 direction applies.
Nearby councils
Licensing stops at the council boundary, so a street on the other side of it can carry a different scheme and a different fee.
Contact Arun
Arun licensing team · [email protected] · 01903 737755