Landlord Licensing Schemes & HMO Licensing Regulations (London – 2026 Update)

Property licensing across London has expanded significantly in 2026. While Mandatory HMO Licensing remains a nationwide legal requirement, Additional HMO and Selective Licensing schemes now operate across most London boroughs, with varying rules, ward coverage and fees.

Failure to hold the correct licence can result in fines of up to £30,000, rent repayment orders, criminal prosecution, and the loss of Section 21 possession rights.

Property Hub Ltd helps landlords navigate these complex and constantly changing requirements.

What Is Landlord Licensing?

Landlord licensing is enforced under the Housing Act 2004 and is designed to:

• Improve property standards and safety
• Reduce overcrowding and poor management
• Protect tenants
• Enable councils to regulate private renting

Licensing obligations apply to:

• Landlords
• Property owners
• Managing agents acting under written instruction

Each London borough operates its own schemes, meaning licensing requirements vary by location, property type and occupancy.

The Three Types of Property Licensing

1. Mandatory HMO Licensing (All London Boroughs)

This applies nationwide and is unchanged in 2026.

A licence is required if a property:

• Is occupied by 5 or more people
• Forms 2 or more households
• Shares facilities (kitchen, bathroom, toilet)

This applies regardless of the number of storeys.

2. Additional HMO Licensing

Councils may require licences for smaller HMOs, typically:

• 3–4 occupants
• 2 or more households
• Converted flats not meeting 1991 Building Regulations

This is now one of the fastest-growing schemes across London.

Major New Schemes & Updates (2026)

Central & North London

• Camden – Borough-wide Additional (HMOs with 3+ people)
• City of London – Mandatory only
• Haringey – Borough-wide Additional; Selective in 15+ wards
• Islington – Borough-wide Additional (renewed Feb 2026); Selective in 10 wards
• Westminster – Selective licensing active across 15 wards (since late 2025)

East & South-East London

• Barking & Dagenham – Borough-wide Selective
• Greenwich – Borough-wide Additional; Selective in specific wards
• Hackney – Borough-wide Additional; Selective in 10+ wards
• Havering – Borough-wide Additional; Selective in Beam Park, Harold Wood, Rainham & others
• Newham – Borough-wide Additional & Selective (excluding Royal Victoria & Stratford Olympic Park)
• Redbridge – Borough-wide Additional; Selective in most wards
• Tower Hamlets – Borough-wide Additional; Selective in 19 wards

West & South-West London

• Ealing – Borough-wide Additional; Selective in 10+ wards
• Hammersmith & Fulham – Borough-wide Additional; Selective on 24 specific streets
• Hounslow – Borough-wide Additional; Selective in designated wards
• Kensington & Chelsea – Additional HMO licensing for all 3+ person HMOs
• Lambeth – Selective licensing across 10+ wards (expanded late 2025)
• Wandsworth – Borough-wide Additional; Selective expanding April 2026

Typical 2026 Licence Fees

• Selective Licensing: £600 – £1,000
• Additional HMO: £900 – £1,500
• Mandatory HMO: £1,200 – £2,500+ (often room-based)

Common Discounts

• EPC C or above: £50–£100 reduction
• Accreditation: NRLA / LLAS members often receive ~10% discount
• Multiple properties: Reduced fees for blocks or portfolios

Enforcement Warning – 2026

• London councils now use Council Tax data-matching and tenancy intelligence to identify unlicensed rentals
• You cannot serve a Section 21 notice
• You may face a Rent Repayment Order (up to 12 months’ rent)
• You risk civil penalties up to £30,000
• Serious cases can lead to banning orders and public registers

How Property Hub Ltd Supports Landlords

• Identifying which licences apply to your property
• Advising on mandatory, additional and selective schemes
• Assisting with applications (where instructed)
• Supporting compliance across multiple London boroughs

Licensing mistakes are costly — compliance is always cheaper than enforcement

Need Licensing Advice?

Property Hub Ltd – Lettings Team

info@propertyhubltd.com

0208 903 1002