LetLens / Licensing by council / Newcastle-under-Lyme
Landlord licensing in Newcastle-under-Lyme
Mandatory HMO licensing applies across England, so a property in Newcastle-under-Lyme let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Newcastle-under-Lyme 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 a Newcastle-under-Lyme 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£750 for a 5-bedroom HMO£750 base + £11/bedroom over 5
WhereEverywhere in Newcastle-under-Lyme, as everywhere in England. Scope, fee schedule and source
- What Newcastle-under-Lyme 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 (0.2%)
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 ST5 6FA, a postcode near the centre of Newcastle-under-Lyme, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Newcastle-under-Lyme, 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£750£750 base + £11/bedroom over 5
- Where it applies
- National scheme
- Which properties
- 5 or more occupiers forming 2 or more households who share toilet, bathroom or kitchen facilities (mandatory HMO licensing, Housing Act 2004 s55/s254, Licensing of HMOs (Prescribed Description) (England) Order 2018). Council states 'If an HMO has 5 or more occupiers, it is a licensable HMO and the landlord must apply for a licence.'
The published fee schedule
- Base fee
- £750
- Size charge
- £11 per bedroom above 5
- Renewal
- £555
- Licence term
- Up to 5 years
Additional HMO licensing No scheme
Selective licensing No scheme
Article 4 and HMO planning permission in Newcastle-under-Lyme In force in part of the council (0.2%)
An HMO Article 4 direction is in force in Newcastle-under-Lyme 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 7 of Newcastle-under-Lyme's 3,203 postcodes inside a designated area, about 0.2% 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)
- Made
- 17 December 2015
- Confirmed
- June 2016
- In force from
- 22 December 2015
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 Newcastle-under-Lyme 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 Newcastle-under-Lyme multiplies the exposure rather than capping it.
The letting market in Newcastle-under-Lyme
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£494 pcmFrom 136 room listings in Newcastle-under-Lyme.
- Median whole-property rent£897 pcmFrom 105 whole-property listings.
- Typical 4-bed rent£1,315 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+88%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£195,000Across 376 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let5.5%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 HMO15.2%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£34,639Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure1.6%51 of 3,203 indexed postcodes.
- Postcodes in Flood Zone 332 (1.0%)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.
Postcode districts in Newcastle-under-Lyme
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 3,203 Newcastle-under-Lyme 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 Newcastle-under-Lyme?
Mandatory HMO licensing applies across England, so a property in Newcastle-under-Lyme let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Newcastle-under-Lyme 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 Newcastle-under-Lyme?
£750 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £750 base + £11/bedroom over 5. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Newcastle-under-Lyme?
An HMO Article 4 direction is in force in Newcastle-under-Lyme 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 7 of Newcastle-under-Lyme's 3,203 postcodes inside a designated area, about 0.2% 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 Newcastle-under-Lyme?
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 Newcastle-under-Lyme?
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 Newcastle-under-Lyme.
Can I convert a house into a small HMO in Newcastle-under-Lyme 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 Newcastle-under-Lyme
Newcastle-under-Lyme is a local housing authority in West Midlands, with a population of about 130,000 and 3,203 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 Newcastle-under-Lyme
Newcastle-under-Lyme licensing team · [email protected] · 01782 742562