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London landlord licensing schemes: what landlords need to know

Landlord licensing in London has expanded significantly in recent years, with more boroughs using selective licensing and additional HMO licensing to bring large parts of the private rented sector under closer oversight. For landlords, the key risk is simple: if your property falls within a licensing area and you don’t apply in time, you may face enforcement action — even if the property is well managed.

LandlordZONE has reported on multiple large-scale schemes being approved or expanded across the capital, including Hackney voting through two licensing schemes that will require licences for most privately rented homes in the borough.

What landlord licensing is and why councils use it

Licensing is enabled by the Housing Act 2004, which gives councils the power to require landlords to apply for licences and meet conditions around property standards and management. (See legislation overview via the UK Government: Housing Act 2004)

Councils typically argue that licensing helps them target:

  • poor conditions and hazards
  • anti-social behaviour linked to badly managed PRS homes
  • landlords who repeatedly ignore safety and management duties

In practice, this means landlords may need a licence even if they’ve never had compliance issues — depending on the borough and the scheme area.

The main licence types landlords see in London

Mandatory HMO licensing

Applies to larger HMOs (under national rules). Councils can also layer additional conditions on top of mandatory requirements.

Additional licensing (smaller HMOs)

Councils can extend licensing to smaller HMOs, for example where three or more people share facilities. LandlordZONE has reported on Westminster’s plans to renew an additional HMO licensing scheme and the fees involved.

Selective licensing (non-HMO private rentals)

Selective licensing can cover most or all privately rented homes in a defined area — even where the property is a single-family let. LandlordZONE has covered Westminster green-lighting a huge selective licensing scheme across 15 wards.

How big can these schemes get?

Some London schemes cover tens of thousands of homes — and in some boroughs, they can become effectively borough-wide. LandlordZONE has reported on Islington expanding selective licensing and increasing fees as schemes widen over time.

Elsewhere, government approval has also been required for very large schemes. LandlordZONE reported on Brent being given the green light for what was described as one of the largest selective licensing schemes in the capital.

What licensing usually requires from landlords

While conditions vary by borough, licensing typically expects landlords to evidence core compliance, such as:

  • gas safety compliance and ongoing checks
  • electrical safety documentation where required
  • smoke/CO alarm compliance
  • suitable property management arrangements
  • responding to repairs and hazards appropriately

Councils may also require specific documentation at application stage, and may inspect either before granting the licence or during the licence period.

Fees and renewals: what to budget for

Licence fees vary widely by borough and by scheme type, and are typically charged per property for a multi-year licence period.

LandlordZONE reporting shows how fees can rise as schemes expand — for example, Islington’s expansion included an increase in the five-year fee.

Because fees and discounts differ across councils (and sometimes include early-bird pricing), landlords should always check:

  • scheme start date
  • whether a transitional period applies
  • the fee schedule and any discounts
  • what documents are required before submission

Penalties: what happens if you don’t have the right licence?

Letting an unlicensed property when a licence is required can lead to:

  • civil penalties or prosecution
  • restrictions on serving certain notices (depending on circumstances)
  • tenants applying for rent repayment orders in relevant cases

LandlordZONE has repeatedly highlighted how expensive licensing failures can be, including a case where a landlord was ordered to repay rent after failing to keep licensing in place.

There’s also growing sensitivity around how licensing is administered and whether councils apply rules correctly — LandlordZONE covered councils being accused of breaking the law over property licensing schemes in the context of challenges to scheme processes.

How to check “how” and “where” licensing applies to you

How to check if your property needs a licence

  1. Go to your borough council website and search “property licensing” (most councils have an address checker or ward map).
  2. Confirm whether your property falls under:
    • mandatory HMO licensing
    • additional HMO licensing
    • selective licensing
  3. Note the scheme start date and whether you must apply before letting (or by a specified deadline).

FAQs

Do all London landlords need a licence?

No — only landlords whose properties fall within a scheme area (selective/additional) or meet HMO rules. Some borough schemes are extensive, so checking your address is essential.

What’s the difference between selective and additional licensing?

Selective licensing can apply to most private rentals in an area, while additional licensing typically targets HMOs that fall outside national mandatory HMO rules.

Can I be penalised if I applied but the council hasn’t processed it yet?

Councils vary, but delays can create risk if you cannot evidence a valid application/temporary cover. Keep proof of submission and payment, and chase acknowledgements.

What’s the biggest mistake landlords make with licensing?

Assuming licensing only applies to HMOs. In many London boroughs, selective licensing can include “standard” single-family lets.

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