In London, all boroughs require a landlord license for Houses in Multiple Occupation (HMOs) if over a certain size. Beyond that, some private rentals require Selective Licensing in certain London boroughs.
Landlord licensing schemes in London are constantly changing, with local councils updating the rules all the time.
We understand how difficult it can be for landlords to stay on top of requirements. At J Property Management London, we are experts at helping landlords across all boroughs understand their landlord responsibilities and assisting them with their property management needs. Get in touch today to see how we can help!
What Are London Landlord Licenses?
Landlord licenses in London are a way for local authorities to maintain quality of living conditions for rentals in the area. It’s a way for them to control the number of tenants in a property and ensure that conditions are safe. The landlord licenses also manage the impact of rentals on local neighbourhoods. In London, landlord licenses must be acquired from the local council for certain rented homes before they are let to tenants.
Types Of London Landlords Licenses
There are 3 main types of London landlord licenses including:
Mandatory HMO License
HMO licenses are mandatory in all London boroughs. They apply to Houses in Multiple Occupation (HMO) – any properties with five or more occupants from two or more households.
Additional License
In some London boroughs, local councils require additional licenses for smaller HMOs of 3-4 tenants from two or more households.
Selective License
In areas where poor housing conditions or negative impact on the neighbourhood are more common, landlords may need to acquire a selective license to rent their properties. This occurs in some London boroughs but varies by street.
It is a key landlord responsibility to check that they have the right license before renting out their property to tenants.
When Do You Need A Landlord License In London?
In London, you need a mandatory landlord license in any HMO that’s rented out to 5 or more people from 2 or more households as their primary residence with shared amenities like bathroom, kitchen and toilet. That is true across all London boroughs.
You’ll only need an additional HMO license in certain London boroughs and in certain scenarios, such as 3 or 4 people from 2 or more households living in a rental as their primary residence and sharing amenities. This varies between different local councils.
Which London Boroughs Need Selective Licensing?
Certain areas of the following London boroughs need selective licensing including:
- Barking & Dagenham
- Bexley
- Brent
- Ealing
- Enfield
- Greenwich
- Hammersmith & Fulham
- Haringey
- Lambeth
- Lewisham
- Newham
- Redbridge
- Southwark
- Waltham Forest
- Westminster
Selective licenses vary on a street by street basis and are designed to improve conditions in certain areas of the borough more prone to antisocial behaviour, excess rubbish or noise-related problems.
What’s The Difference Between Selective License And Additional License?
Additional licences are applicable to smaller HMOs – 3 or 4 tenants rather than 5 or more – and are only required in certain areas. Selective licenses could apply to any type of privately rented home and are completely area-dependent.
How Can You Apply For A London Landlord License?
To check if you need a London landlord license and apply, you can visit the website of your London borough. Here, you can determine what type of license you need based on your property type and its location.
Applications for landlord licenses must be made online and payment can also be made digitally.
How Much Are London Landlord Licenses?
London landlord licenses vary in price depending on the type of license (mandatory HMO, additional HMO or selective licences). They also vary depending on the London borough as fees are set by the local council.
Generally speaking, the prices are:
- Mandatory HMO licence: From £500 to up to £5,500
- Additional HMO license: Around £700 – £1,500
- Selective licenses: £500-£1,000 (covering a 5-year period).
Prices vary significantly by location and certain boroughs offer discounts for things like property condition, EPC ratings or for landlords with a property portfolio of multiple properties.
How Do You Know If You Need A Landlord License In London?
You may need a landlord license in London depending on the type of property and the area of London.
If you are renting to more than two tenants from separate households, you may fall under mandatory licensing laws depending on the location in London. You can check if your property is subject to mandatory licensing or an additional or selective license on your local borough’s website.
To know if you require a London landlord license, you need to establish if your property counts as an HMO and then check your specific borough’s website to see their housing schemes.
What Happens If You Don’t Have A London Landlord License?
If you fail to comply with licensing requirements for your local area and don’t have a valid London landlord license, you could face:
- Civil penalties of up to £30,000
- Rent repayment for your tenants of up to 12 months’ rent
- Criminal prosecution
- Inability to evict tenants
- A banning order on renting out your property.
Renting out a property without the correct landlord license is a criminal offence in the UK and could lead to criminal prosecution, unlimited fines and even jail time.
Understand Required Landlord Licenses With J Property Management
As a landlord, it’s important to stay on top of the latest licensing requirements – something made more difficult by the fact that local councils don’t always make their licensing schemes very clear!
Landlords need to be aware of their responsibilities and obligations in order to avoid legal or financial ramifications. That’s why having a clear landlord checklist or seeking help from an expert London property management company can make sure you’re staying compliant.
At J Property Management, we are experts in helping London landlords understand their obligations, stay compliant and optimise their rentals. Contact us today to see how we can help!
