If you rent out a home in London, there is a good chance the council requires a licence for it. Some licences apply nationally, others only in certain boroughs or wards, and schemes start and end every year. In 2026 alone, Hackney, Islington, Brent and Havering all launched new schemes, while Tower Hamlets closed its selective scheme.
This guide explains which licence your property may need, what it costs, how to apply and what happens if you get it wrong. It is part of our guides to managing your rental property. If you just want the answer for one address, use the free licence checker above: enter the postcode and we will tell you which scheme applies.
In short:
- Mandatory HMO licence: needed anywhere in England if 5 or more people from 2 or more households share facilities.
- Additional HMO licence: needed for smaller HMOs (usually 3 or 4 people) where the council runs a scheme.
- Selective licence: needed for single-family lets and other non-HMO rentals in designated areas.
- No licence: if none of these apply, you still need to meet all the usual safety and tenancy rules.
Free licensing check
Do you need a licence to rent out your property?
Enter the postcode and answer three quick questions. We'll tell you which licence the council requires, what it costs, when it starts and how to apply.
- Every London borough’s schemes
- Free, in under a minute
- Fees, dates and how to apply
What has changed for landlord licensing (2024 to 2027)
Licensing rules have moved more in the last two years than in the decade before. Councils have more freedom to launch schemes, fines are higher, and a national landlord register is on the way.
| Date | Change | What it means for you |
|---|---|---|
| 15 July 2027 | PRS Database registration opens for London | Every London landlord must register themselves and each rental property within a 3-month window. |
| 15 December 2026 | PRS Database launches (West Midlands first) | National register rolls out region by region, with a £65 fee per property per year. |
| 30 September 2026 | Tower Hamlets selective scheme ends | Single-household lets in Weavers, Whitechapel and Spitalfields no longer need a selective licence. HMOs still do. |
| 1 May 2026 | Renters’ Rights Act main changes in force | Rent Repayment Orders doubled to up to 24 months’ rent. Hackney’s new schemes also started that day. |
| Late 2025 | Civil penalties raised | Maximum council fine for serious offences, including licensing offences, rose from £30,000 to £40,000. |
| 23 December 2024 | Selective licensing approval rule scrapped | Councils no longer need the Housing Secretary’s sign-off for large selective schemes, so borough-wide schemes are easier to introduce. |
Sources: Renters’ Rights Act penalties, selective licensing General Approval 2024, PRS Database rollout, Tower Hamlets selective licensing.
Is your property an HMO?
A house in multiple occupation (HMO) is, in most cases, a home let to 3 or more people who form 2 or more households and share a kitchen, bathroom or toilet. A household is one person, a couple, or a family living together. Three friends sharing a flat is an HMO; a couple and their two children is not.
Free licensing check
Do you need a licence to rent out your property?
Enter the postcode and answer three quick questions. We'll tell you which licence the council requires, what it costs, when it starts and how to apply.
- Every London borough’s schemes
- Free, in under a minute
- Fees, dates and how to apply
Under the Housing Act 2004, a property is an HMO if it meets one of these tests:
- Standard test: 3 or more people, 2 or more households, sharing basic amenities, living there as their main home.
- Self-contained flat test: the same as above, but inside a single flat.
- Converted building test: a building converted into bedsits or non-self-contained units, with 3 or more people in 2 or more households.
- Section 257 HMO: a building converted into self-contained flats where the conversion did not meet the 1991 Building Regulations and fewer than two-thirds of the flats are owner-occupied.
- HMO declaration: the council has formally declared the property an HMO.
When an HMO does not need a licence
Some properties are not treated as HMOs for licensing, even if they look like one. The main exemptions are:
- Homes let to just 2 people who form 2 households (for example, two unrelated sharers).
- Properties managed or controlled by a council, housing association or other registered social landlord.
- Buildings run by the police, fire service or NHS bodies.
- A resident landlord living with no more than 2 lodgers.
- Buildings regulated under other legislation, such as some student halls run by universities, and religious communities.
Occupancy can change at every tenancy, so a property that was not an HMO last year can become one when a new sharer moves in. Check each time the household mix changes, and before you let your property to sharers for the first time.
The three types of property licence
There are three licensing regimes in England. One is national; the other two exist only where a council has designated an area.
| Mandatory HMO | Additional HMO | |
|---|---|---|
| Who sets it | National law | Your council |
| Applies to | HMOs with 5+ people from 2+ households | Smaller HMOs, usually 3 or 4 people, plus some section 257 buildings |
| Where | All of England | Borough-wide or specific wards |
| Typical London fee (5 years) | £900 to £1,650 | £840 to £1,650 |
| Maximum scheme length | Permanent | 5 years, then renewal |
Mandatory HMO licensing
Since October 2018, any HMO with 5 or more occupants from 2 or more households needs a mandatory licence, however many storeys it has. The main exception is a flat in a purpose-built block of 3 or more self-contained flats. Mandatory licences come with national minimum bedroom sizes and a duty to follow the council’s refuse scheme.
Additional HMO licensing
Additional licensing lets a council extend licensing to HMOs that fall below the mandatory threshold, typically 3 or 4 sharers. It is not about extra hazards: it simply widens the net. Many London boroughs now run it borough-wide, including Brent (from February 2026), Islington (from February 2026), Hackney (from May 2026) and Havering (from March 2026).
Selective licensing
Selective licensing covers private rentals that are not HMOs, such as a flat let to a couple or a house let to a family. Councils can designate an area where there is poor housing, anti-social behaviour, high crime, deprivation or low demand. Since December 2024, they no longer need central government approval for large schemes, so expect more of them.
Can a property need more than one licence?
No single property needs two licences at once: an HMO licence covers it, so an HMO in a selective area needs an HMO licence rather than a selective one. But which HMO licence applies depends on occupancy, and it can change mid-tenancy. If a 4-person share gains a fifth tenant, it moves from additional to mandatory licensing.
How much does a property licence cost in London?
Most London licences cost between £600 and £1,650 and last up to five years, so budget roughly £120 to £330 a year per property. Each council sets its own fee, often split into two parts (Part A on application, Part B once the licence is granted), and HMO fees usually rise with the number of rooms or occupants.
| Borough | Licence | Fee | Notes |
|---|---|---|---|
| Brent | Additional (borough-wide, from 2 Feb 2026) | £840 | Discount for London Landlord Accreditation Scheme members |
| Hackney | Additional (borough-wide, from 1 May 2026) | £1,400 | Paid in two parts |
| Hackney | Selective (17 wards, from 1 May 2026) | £925 | |
| Hammersmith & Fulham | Mandatory HMO | £1,387 for 5 bedrooms | Plus £170 per extra bedroom |
| Hammersmith & Fulham | Additional or selective | £597.50 | Discount for accredited landlords |
| Havering | Selective (from 18 Mar 2026) | £950 | Part A £570, Part B £380 |
| Islington | Mandatory or additional HMO | £900 + £100 per letting | £1,400 for a 5-person share |
| Islington | Selective (Finsbury Park, Tollington, Hillrise) | £850 | |
| Tower Hamlets | Additional (borough-wide) | £1,323 + £68.50 per room | Up 75% from April 2026 |
Many councils offer discounts for accredited landlords, early applications or good EPC ratings (Islington takes £50 off for EPC A to C; look up your rating on our EPC register for landlords). Late applications often cost more. Licence fees are generally an allowable expense when you work out your rental income tax. The licence checker above shows the current fee for your postcode.
Sources: NRLA licensing update, Jan 2026, Islington, Havering, Tower Hamlets, Hammersmith & Fulham.
How to apply for a property licence
You apply to the council where the property is, not where you live, and you must apply before the property becomes licensable. Decisions can take weeks or months in busy boroughs, but once a valid application is in, you have a defence against the offence of letting without a licence.
Free licensing check
Do you need a licence to rent out your property?
Enter the postcode and answer three quick questions. We'll tell you which licence the council requires, what it costs, when it starts and how to apply.
- Every London borough’s schemes
- Free, in under a minute
- Fees, dates and how to apply
- Check whether a licence is needed. Use the checker above or your council’s licensing page.
- Gather your documents. Usually a gas safety certificate, electrical installation condition report (EICR), EPC, fire safety and alarm details, a floor plan with room sizes, tenancy agreement template and proof of ownership.
- Decide who holds the licence. The holder must pass the council’s “fit and proper person” test. Overseas landlords often name a UK managing agent as holder.
- Apply online and pay Part A. Incomplete applications are one of the most common reasons for delays.
- Council inspection. Many councils inspect before or after granting, especially for HMOs.
- Pay Part B and receive the licence. It will list the maximum number of occupants and the conditions you must follow.
- Diarise renewal. Licences last up to 5 years, and some are granted for just 1 year if there are concerns.
What conditions come with a licence?
Every licence carries conditions, and breaking one is an offence in its own right. Typical conditions include:
- Gas: annual gas safety check by a Gas Safe engineer, with a copy to tenants.
- Electrics: an EICR at least every 5 years, and safe electrical appliances.
- Alarms: a working smoke alarm on every storey, and a carbon monoxide alarm in any room with a fixed combustion appliance (except gas cookers).
- Fire safety: fire doors, escape routes and, for larger HMOs, fire detection and emergency lighting to council standards.
- Room sizes (HMOs): at least 6.51 m² for one adult and 10.22 m² for two adults. Rooms under 4.64 m² cannot be used for sleeping.
- Amenities: enough kitchens, bathrooms and toilets for the number of occupants.
- Management: a written statement of terms for tenants, prompt repairs, clean common areas and proper refuse storage.
What happens if you rent without a licence?
Letting a licensable property without a licence is a criminal offence, and the Renters’ Rights Act has made it far more expensive. Councils can now issue a civil penalty of up to £40,000 per offence (up from £30,000) without going to court, or prosecute for an unlimited fine.
| Consequence | Who acts | Maximum |
|---|---|---|
| Civil penalty for no licence or breaching licence conditions | Council | £40,000 per offence |
| Prosecution | Council, in the magistrates’ court | Unlimited fine and a criminal record |
| Rent Repayment Order | Tenant or council, at the First-tier Tribunal | Up to 24 months’ rent (was 12 months before 1 May 2026) |
| Banning order and rogue landlord database entry | Council | Ban from letting or managing property |
| Management order | Council | Council takes over management and collects the rent |
The Act also lets tenants pursue a Rent Repayment Order against superior landlords in rent-to-rent arrangements, not just their immediate landlord. Where a council applies after a successful prosecution or unchallenged penalty, the tribunal must award the maximum.
What if the council refuses or revokes a licence?
The council must give written reasons and let you respond before a final decision. You can appeal to the First-tier Tribunal (Property Chamber). Refusal usually follows a failed fit and proper person test or a property that cannot be brought up to standard.
What can tenants do?
Tenants who think their home should be licensed can check the council’s public register and report it to the council’s private housing team. They can also apply to the tribunal for a Rent Repayment Order, and councils can apply on their behalf.
Sources: Landlord Law Blog on local authority fines, Renters’ Rights Act penalties explained.
Licensing and the new landlord database
The PRS Database does not replace licensing: you will need both. Registration is a separate legal duty under the Renters’ Rights Act (our 50 landlord questions, answered covers the wider Act), and councils will use the database to spot unlicensed properties.
- When: registration opens in the West Midlands on 15 December 2026 and reaches London on 15 July 2027. Each region then has 3 months to register, with a national deadline of 14 November 2027.
- What: a landlord entry for you, plus a separate entry for each rental property, including compliance details such as any licence held.
- Cost: £65 per property per year.
- Penalties: failing to register can lead to fines of up to £40,000 and restricts your access to most possession grounds.
Landlords with properties in more than one region can register their whole portfolio from 15 December 2026, and early registration is allowed.
Sources: Rocket Lawyer on registration dates, Sherrards on the London start date, LLCR on fees.
London council licensing pages
Editor note: this keeps the existing council links from the live page. Run a link check before publishing, as several councils have moved pages since 2024.
For the final word on your property, go to your council’s licensing page. Apply through the council’s own portal or its appointed provider.
| Borough | Licensing page |
|---|---|
| Barking and Dagenham | Council website |
| Barnet | Council website |
| Bexley | Council website |
| Brent | Licensing portal |
| Bromley | Council website |
| Camden | Council website |
| Croydon | Council website |
| Ealing | Council website |
| Enfield | Council website |
| Greenwich | Council website |
| Hackney | Council website |
| Hammersmith and Fulham | Council website |
| Haringey | Council website |
| Harrow | Council website |
| Havering | Council website |
| Hillingdon | Council website |
| Hounslow | Council website |
| Islington | Council website |
| Kensington and Chelsea | Council website |
| Kingston upon Thames | Council website |
| Lambeth | Council website |
| Lewisham | Licensing portal |
| Merton | Council website |
| Newham | Council website |
| Redbridge | Council website |
| Richmond upon Thames | Council website |
| Southwark | Council website |
| Sutton | Council website |
| Tower Hamlets | Council website |
| Waltham Forest | Council website |
| Wandsworth | Council website |
| Westminster | Council website |
Free licensing check
Do you need a licence to rent out your property?
Enter the postcode and answer three quick questions. We'll tell you which licence the council requires, what it costs, when it starts and how to apply.
- Every London borough’s schemes
- Free, in under a minute
- Fees, dates and how to apply
Frequently asked questions
It depends on the borough, the ward and who lives there. A flat let to a single family needs a licence only if it is in a selective licensing area. A flat shared by 3 or more unrelated people may need an HMO licence. Use the checker above to find out for your postcode, and our instant rental valuation to see what it could earn.
Up to 5 years. Councils can grant a shorter licence, often 1 year, if they have concerns about the property or the landlord. If the scheme ends, your existing licence usually stays valid until its end date.
Up to £40,000 per offence as a civil penalty, or an unlimited fine if prosecuted. Tenants can also claim back up to 24 months’ rent through a Rent Repayment Order.
No. Licences are personal to the holder and the property. A new owner or new managing agent holder must apply for a new licence.
Yes, but councils expect someone local who can manage the property and respond to issues. Many overseas landlords name their UK managing agent as the licence holder, which is a core part of our property management service for overseas landlords. You can also compare local estate agents in your area.
Councils estimated 472,823 HMOs in England in 2023-24, of which 131,061 needed a mandatory licence. Only 93,319 were licensed, which is why councils are stepping up enforcement. (source)
No. You will need to register on the PRS Database from July 2027 for London properties and hold any licence your council requires.
Last Updated on September 28, 2026