LetLens / Licensing by council / Exeter
Landlord licensing in Exeter
Mandatory HMO licensing applies across England, so a property in Exeter let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Exeter runs no additional or selective licensing scheme of its own, so smaller shared houses and ordinary rentals do not need a council licence here.
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 Exeter 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£1,071.20 for a 5-bedroom HMO£1071 base + £10/bedroom over 5
WhereEverywhere in Exeter, as everywhere in England. Scope, fee schedule and source
- What Exeter 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 needNo additional HMO licence No scheme
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 (14.9%)
WhereInside the designated area: a mapped boundary. 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 EX2 4TR, a postcode near the centre of Exeter, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Exeter, 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£1,071.20£1071 base + £10/bedroom over 5
- Where it applies
- National scheme
- Which properties
- HMOs occupied by 5 or more persons forming 2 or more households who share an amenity such as a kitchen, bathroom or toilet (mandatory HMO licensing under Part 2, Housing Act 2004)
The published fee schedule
- Base fee
- £1,071.20
- Base fee, paid in two parts
- £298.70 on application, then £772.50 when the licence is granted
- Size charge
- £10.80 per bedroom above 5
- Licence term
- Up to 5 years
- Fee schedule dated
- 2025
Discounts
- Accredited under a nationally recognised scheme (reduction applied at Part B stage): £125
Other charges
- Worked example only, not a separate fee: Part B for a 7-bedroom HMO = £772.50 + 2 x £10.80: £794.10
Additional HMO licensing No scheme
Selective licensing No scheme
Article 4 and HMO planning permission in Exeter In force in part of the council (14.9%)
An HMO Article 4 direction is in force in Exeter covering a mapped boundary, 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 542 of Exeter's 3,630 postcodes inside a designated area, about 14.9% 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, a mapped boundary
- Area
- a mapped boundary
- Right removed
- C3 to C4 (small HMO)
- In force from
- 23 December 2024
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 Exeter 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 Exeter multiplies the exposure rather than capping it.
The letting market in Exeter
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£653 pcmFrom 176 room listings in Exeter.
- Median whole-property rent£1,236 pcmFrom 94 whole-property listings.
- Typical 4-bed rent£1,905 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+71%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£295,000Across 356 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let5.0%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 HMO13.3%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£39,468Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure15.0%543 of 3,630 indexed postcodes.
- Postcodes in Flood Zone 3408 (11.2%)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 Exeter’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 |
|---|---|---|---|
| EX4 | £650 pcm | 90 | Check EX4 |
| EX2 | £650 pcm | 77 | Check EX2 |
Postcode districts in Exeter
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 3,630 Exeter 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 Exeter?
Mandatory HMO licensing applies across England, so a property in Exeter let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Exeter runs no additional or selective licensing scheme of its own, so smaller shared houses and ordinary rentals do not need a council licence here.
How much does an HMO licence cost in Exeter?
£1,071.20 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £1071 base + £10/bedroom over 5. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Exeter?
An HMO Article 4 direction is in force in Exeter covering a mapped boundary, 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 542 of Exeter's 3,630 postcodes inside a designated area, about 14.9% of the council. Most of the council is outside it, so the right still applies to the majority of addresses here.
What is the penalty for letting an unlicensed property in Exeter?
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 Exeter?
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 Exeter.
Can I convert a house into a small HMO in Exeter 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 Exeter
Exeter is a local housing authority in South West, with a population of about 133,000 and 3,630 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 Exeter
Exeter licensing team · [email protected] · 01392 277888