LetLens / Licensing by council / Shropshire
Landlord licensing in Shropshire
Mandatory HMO licensing applies across England, so a property in Shropshire let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Shropshire 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 Shropshire 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£1,458 for a 5-bedroom HMO£1458 base + £176/bedroom over 5
WhereEverywhere in Shropshire, as everywhere in England. Scope, fee schedule and source
- What Shropshire 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 None in force
WhereNo direction here, so this is normally permitted development. 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 SY2 6NH, a postcode near the centre of Shropshire, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Shropshire, 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£1,458£1458 base + £176/bedroom over 5
- Where it applies
- National scheme
- Which properties
- HMOs occupied by 5 or more persons forming 2 or more households who share amenities such as a kitchen or bathroom (mandatory HMO licensing under s55/s254 Housing Act 2004, Prescribed Description Order 2018)
The published fee schedule
- Base fee
- £1,458
- Base fee, paid in two parts
- £1,055 on application, then £403 when the licence is granted
- Size charge
- £176 per bedroom above 5
- Licence term
- Up to 5 years
- Fee schedule dated
- 1 April 2026
Additional HMO licensing No scheme
Selective licensing No scheme
Article 4 and HMO planning permission in Shropshire None in force
No HMO Article 4 direction is in force in Shropshire, so converting a house into a small HMO occupied by no more than six residents (use class C4) is normally permitted development and does not need planning permission on those grounds. An HMO for seven or more residents falls outside class C4 and needs permission anyway.
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 Shropshire multiplies the exposure rather than capping it.
The letting market in Shropshire
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£577 pcmFrom 133 room listings in Shropshire.
- Median whole-property rent£944 pcmFrom 145 whole-property listings.
- Typical 4-bed rent£1,191 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+142%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£272,750Across 1,036 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let4.2%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 HMO12.7%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£36,735Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure3.5%441 of 12,692 indexed postcodes.
- Postcodes in Flood Zone 3202 (1.6%)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 Shropshire’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 |
|---|---|---|---|
| SY1 | £610 pcm | 30 | Check SY1 |
| SY3 | £575 pcm | 27 | Check SY3 |
Postcode districts in Shropshire
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 12,692 Shropshire 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 Shropshire?
Mandatory HMO licensing applies across England, so a property in Shropshire let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Shropshire 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 Shropshire?
£1,458 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £1458 base + £176/bedroom over 5. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Shropshire?
No HMO Article 4 direction is in force in Shropshire, so converting a house into a small HMO occupied by no more than six residents (use class C4) is normally permitted development and does not need planning permission on those grounds. An HMO for seven or more residents falls outside class C4 and needs permission anyway.
What is the penalty for letting an unlicensed property in Shropshire?
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.
About Shropshire
Shropshire is a local housing authority in West Midlands, with a population of about 325,000 and 12,692 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 Shropshire
Shropshire licensing team · [email protected] · 0345 678 9067