Property Licensing and HMO Compliance in London 2026: A Landlord Guide

Types of Property Licensing That Apply in London

Property licensing in England operates at three levels. Mandatory HMO licensing, which applies nationally and does not require a local authority scheme to be in place, applies to all houses in multiple occupation with five or more occupants forming two or more households, regardless of the number of storeys. Additional HMO licensing is a discretionary scheme that a local authority can introduce to extend licensing requirements to HMOs that fall below the mandatory threshold, for example HMOs with three or four occupants. Selective licensing is a further discretionary scheme that a local authority can introduce in respect of all privately rented properties within a defined area, not just HMOs, where the authority can demonstrate that the area suffers from low housing demand, significant and persistent antisocial behaviour, or other prescribed conditions.

In London, selective licensing has become widespread. As of 2026, more than twenty of the thirty-two London boroughs operate at least one selective licensing scheme, and several boroughs including Newham, Southwark, Lambeth, and Lewisham operate borough-wide or near borough-wide schemes that require the majority of privately rented properties within their boundaries to be licensed. The existence and extent of selective licensing schemes changes regularly as schemes expire and new ones are introduced. London landlords must check the licensing requirements for each borough where they hold rental property and must apply for a licence before renting out any property that falls within a scheme, not after the tenancy has started.

What Licensing Conditions Require of London Landlords

A property licence typically attaches conditions that the licence holder must satisfy throughout the period of the licence. For HMO licences, the conditions commonly include requirements relating to the provision and maintenance of fire detection systems, the fitting and maintenance of appropriate fire doors, the provision of adequate kitchen and bathroom facilities for the number of occupants, the maintenance of means of escape in case of fire, and minimum room size standards. For selective licences, the conditions are typically less onerous but commonly include requirements that the property is maintained in a good state of repair, that gas safety certificates and EICRs are maintained and copies provided to the local authority, that the property is managed by a fit and proper person, and that tenants are provided with prescribed information including a copy of the licence.

The licence conditions relating to gas safety and electrical safety overlap with the standalone regulatory requirements under the Gas Safety Regulations and the Electrical Safety Standards Regulations, but the consequence of a breach is different: a breach of a licence condition is an offence under the Housing Act 2004 that can result in a fine of up to five thousand pounds per breach, separately from any fine that might arise under the gas or electrical safety regulations themselves. London landlords who are managing properties in a licensed area must ensure that their compliance processes cover not only the requirements of the safety regulations but also the specific conditions attached to the property licence.

HMO Management Standards and What They Require for Plumbing and Heating

The Management of Houses in Multiple Occupation (England) Regulations 2006 impose ongoing management duties on HMO managers, including duties relating to the maintenance of water supply, drainage, heating, and all other services within the HMO. The manager must ensure that any defect in the water supply, drainage, heating, or hot water supply is repaired without undue delay after it has come to the manager attention. The regulations do not specify a fixed timeframe but the courts and local authorities treat "without undue delay" as requiring a faster response than the reasonable time standard under section 11, reflecting the higher-risk nature of HMO occupation where multiple occupants share facilities and any failure in communal services affects all residents simultaneously.

Prestige Engineers work with London HMO operators and managing agents to carry out gas safety checks, boiler servicing, plumbing repairs, and heating system maintenance across HMO properties throughout the capital. We understand the specific requirements of HMO management and can provide the documentation, including gas safety records, boiler service records, and plumbing repair job sheets, that London local authorities require when auditing HMO licence compliance. For landlords who are uncertain whether their properties require a licence, or who need to assess whether their current maintenance arrangements satisfy the licence conditions, we can provide a compliance review as part of a property inspection visit.