HMO Licensing in London: A Borough-by-Borough Guide 2025

Understanding HMO Licensing Across London

London does not have a single HMO licensing regime. Mandatory licensing operates at the national level, but the Housing Act 2004 also grants local authorities the power to introduce additional and selective licensing schemes that extend licensing requirements well beyond the mandatory threshold. The result is a patchwork of obligations that varies significantly from one London borough to the next. A landlord operating HMOs across multiple boroughs must understand the specific requirements in each area.

Mandatory HMO Licensing: The National Threshold

Mandatory HMO licensing applies throughout England to properties occupied by five or more people from two or more separate households, where residents share facilities such as a kitchen or bathroom. This threshold applies in every London borough regardless of any local scheme. A mandatory licence is required before the property can lawfully be let. Operating without a licence is a criminal offence carrying an unlimited fine and the risk of a civil penalty of up to £30,000, as well as exposure to Rent Repayment Orders from tenants.

Additional Licensing Schemes by Borough

Additional licensing schemes extend the licensing requirement to smaller HMOs below the mandatory threshold. The following London boroughs operate or have recently operated additional licensing schemes that cover all HMOs regardless of size:

Hackney operates one of the most comprehensive additional licensing schemes in London, requiring a licence for all HMOs in the borough — including those with fewer than five occupants. Hackney has maintained this position for a number of years and renewals have consistently extended the coverage.

Tower Hamlets has operated additional licensing covering all HMOs, reflecting the high density of shared accommodation in the borough and historically high rates of landlord non-compliance identified by the council.

Southwark operates additional licensing across designated areas, targeting those wards with the highest concentration of HMO activity and the greatest history of poor property conditions.

Lambeth has introduced additional licensing covering all HMOs across the borough, one of several inner south London boroughs that have chosen borough-wide coverage rather than targeting specific wards.

Lewisham, Newham, Islington, and Camden all operate additional licensing schemes. The precise scope and designated areas should be confirmed directly with each borough as schemes are periodically renewed and the geographic coverage may change at each renewal.

Selective Licensing Schemes

Selective licensing applies to all privately rented properties in a designated area — not just HMOs. It was pioneered in Newham, which introduced the first borough-wide selective licensing scheme in England in 2013 and has renewed it multiple times since. Every private rented property in Newham requires a selective licence.

Waltham Forest operates selective licensing across designated wards, targeting areas identified by the council as experiencing low housing demand or significant anti-social behaviour — the legal grounds required under the Housing Act 2004 for a selective licensing designation.

Croydon and Brent both operate selective licensing across parts of their boroughs. Parts of Southwark also fall under selective licensing in addition to the HMO additional licensing scheme in that borough.

Checking Your Property

The only reliable way to confirm whether your property falls within a licensing designation is to check directly with the relevant London borough. All London borough councils are required to publish details of their licensing designations, and most provide online postcode checkers. Designations change when schemes expire and are renewed, and the geographic coverage may shift between scheme generations. Do not assume that a property that did not require a selective licence two years ago is still outside a designated area today.

Licence Duration, Application Requirements, and Fees

HMO licences typically run for five years, subject to the landlord maintaining compliance with all conditions. Applications require proof of the applicant identity and their right to manage the property, a current Landlord Gas Safety Record (CP12), a current EICR rated satisfactory, a current Fire Risk Assessment, a floor plan indicating room dimensions, and — for larger HMOs — evidence of planning permission or a certificate of lawful use. Some boroughs also require evidence of Legionella risk assessment and PAT testing.

Fees vary considerably. A typical HMO licence fee in London falls between £500 and £2,000 depending on the borough and the size of the property. Additional licensing and selective licensing fees are generally lower than mandatory HMO licence fees but still represent a significant ongoing cost for landlords operating multiple properties across several boroughs.

Consequences of Operating Without a Licence

A landlord operating a licensable HMO or a property in a selective licensing area without a licence faces a civil penalty of up to £30,000 per property. Tenants may apply to the First-tier Tribunal for a Rent Repayment Order requiring repayment of up to twelve months of rent. The landlord may be subject to a banning order preventing them from letting property in England, and their details may be added to the rogue landlord database. Applications for planning permission may also be affected by a history of non-compliance with housing licensing obligations.