Local authorities have been allowed to set fees at their own discretion but these fees must reflect the actual costs to the local authority of HMO licensing. Landlords and agents should contact the local authority in which a property is situated to find out the cost of the licence fee.
A toolkit has been produced by the Government and other interested parties to help local authorities set fees levels for the mandatory Licensing of Houses in Multiple Occupation, and any discretionary schemes they are proposing for Selective and Additional Licensing of properties.  You can find the toolkit at www.lga.gov.uk/OurWork.asp?lsection=59&ccat=247

No maximum fee has been set. The Government seems to beleive that experience from existing registration schemes where there has been a cap on fees suggests that local housing authorities will charge the maximum allowed regardless of whether that is the actual cost of licensing.  As a result in some areas the fees won’t cover the costs and in others landlords will end up paying more than they should for the service. The fee levels do vary widely from one part of the country to another and this could provide another problem for landlords and their agents.

The Government is encouraging local housing authorities to consider careful treatment of landlords and agents who are members of an accreditation scheme or those who belong to a professional association.  Because they should already meet the standards of accreditation or their association, the application process may be more straightforward and the fee should reflect this.