London Borough Licensing: What Landlords Must Know

The Three Types of Landlord Licensing in London

Three separate licensing regimes apply to residential landlords in England, two of which require local authority designation and the third of which is nationally mandatory:

1. Mandatory HMO Licensing

Under the Housing Act 2004 (as amended by the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018), a House in Multiple Occupation must be licensed if it:

• Has five or more occupants forming more than one household
• Shares facilities such as kitchen, bathroom or WC
• Is at least three storeys tall (though this restriction was removed in October 2018 — the current national mandatory HMO licensing applies to properties of any number of storeys meeting the occupancy test)

This scheme is national and applies in every London borough. Operating a licensable HMO without a licence is a criminal offence carrying an unlimited fine and the possibility of a rent repayment order from tenants. The local borough issues and enforces the licence.

2. Additional HMO Licensing

Boroughs can designate additional licensing schemes for HMOs that fall below the mandatory licensing threshold — for example, smaller shared houses with three or four occupants. Many London boroughs have introduced additional licensing, including Hackney, Islington, Waltham Forest, Lewisham and others. The specific criteria and fees vary by borough and by scheme designation period.

3. Selective Licensing

Selective licensing allows a borough to require all private landlords in a defined geographical area to hold a licence — regardless of property type or number of occupants. It is aimed at improving management standards and reducing anti-social behaviour in areas with high concentrations of private rented properties.

Selective licensing requires Secretary of State approval for schemes covering more than 20% of a borough's geographical area or 20% of its housing stock. Schemes covering less than these thresholds can be introduced without approval. London boroughs with current or recent selective licensing schemes include Newham (England's first selective licensing scheme, introduced 2013), Southwark, Waltham Forest, Croydon, Hounslow, Brent and several others.

London Boroughs Currently Operating Schemes (as of mid-2025)

The following is a representative (not exhaustive) list of schemes known to be in operation:

• Newham: Borough-wide selective licensing. All privately rented properties require a licence.
• Southwark: Selective licensing in multiple wards plus additional HMO licensing borough-wide.
• Waltham Forest: Additional HMO licensing and selective licensing in designated areas.
• Hackney: Additional HMO licensing covering all HMOs below the mandatory threshold.
• Brent: Selective licensing in several wards.
• Hounslow: Selective licensing in multiple wards.
• Croydon: Selective licensing in designated areas.
• Islington: Additional HMO licensing borough-wide.

Licensing scheme boundaries, fees and conditions change regularly. The definitive source is the individual borough's housing licensing page on their website. The government's national database of licensing designations (available at gov.uk) is a useful starting point but may not reflect very recent scheme changes.

What a Licence Typically Requires

Licence conditions vary between schemes but typically require the landlord to:

• Hold a valid Gas Safety Record (CP12) for all gas appliances
• Hold a valid Electrical Installation Condition Report (EICR) renewed at least every five years
• Ensure smoke and carbon monoxide alarms are fitted in prescribed locations and tested
• Provide an EPC with at least a minimum band E rating
• Manage the property in accordance with prescribed management standards, including responding to repair requests within specified timeframes
• In HMO schemes, meet prescribed amenity standards for the number of occupants — including prescribed ratios of bathrooms, WCs and kitchen facilities

Consequences of Operating Without a Licence

An unlicensed landlord faces multiple overlapping risks:

• Criminal prosecution: Operating a mandatory or additional HMO without a licence is a criminal offence under the Housing Act 2004. Fines were unlimited after amendments in 2015.
• Civil penalty: Local authorities can impose civil penalties of up to £30,000 per offence as an alternative to prosecution.
• Rent repayment order: Tenants (or the local authority) can apply to the First-tier Tribunal for a Rent Repayment Order, requiring the landlord to repay up to 12 months' rent received while the property was unlicensed.
• Invalid Section 21 notice: A landlord who is required to hold a licence but does not cannot serve a valid Section 21 notice while the property is unlicensed.
• Criminal record: A prosecution for unlicensed letting can result in the landlord being recorded as a convicted person — relevant to future licence applications and to their ability to act as a director of a property company.

Practical Compliance Steps for London Landlords

• Check your borough's current licensing requirements before letting or re-letting any property — schemes change and coverage areas expand.
• Apply for a licence before the tenancy commences where possible, to avoid the risks associated with unlicensed letting.
• Ensure all mandatory documentation — Gas Safety Record, EICR, EPC, deposit protection certificate, How to Rent guide — is provided to tenants at the start of the tenancy and retained on file.
• Keep compliance documentation up to date — licence renewal typically requires current versions of all certificates.
• For HMO properties, instruct a qualified plumber to assess whether bathroom and kitchen facilities meet the prescribed amenity standards for the number of occupants before the licence inspection.