Selective landlord licensing in South and East London

If you’re thinking of renting out property, you need to know about landlord licences. Depending on the location and size of your privately rented property, you might need to apply for a licence before you find tenants. Failing to get a licence if you need one, could land you with a steep fine and even a criminal record. 

Even so, the laws around selective landlord licensing aren’t that simple. While it’s a legal requirement to apply for a licence if you’re renting out a large house in multiple occupation (HMO) throughout England and Wales, local councils can set up so called ‘selective’ and ‘additional’ licensing schemes in their areas too.  

For example, there are selective licensing schemes in south east London areas such as Southwark and Lewisham, so if you are a landlord with property here, you will need to check whether you require a selective licence. 

If you’re not sure what this entails, and you’re a new landlord in south or east London, this article explores the rules that apply in these areas. 

Landlord licensing schemes – what are they? 

Landlord licensing schemes are designed to help local councils maintain high standards in the private rented sector. They are a way of checking landlords are ‘fit and proper’ people to rent out homes, rather than rogue operators, and that their properties meet minimum standards of health and safety, and decency.  

There are three types of licensing in operation for the private rented sector in England and Wales: 

Mandatory licensing 

Landlords with large HMOs – i.e. those with five or more tenants sharing facilities, must, by law, obtain a licence from their local council – this is called mandatory licensing. This rule applies to all HMO properties. 

The requirements for an HMO licence can vary slightly across different local authorities but include meeting the required standards for fire, gas and electrical safety, adequate space and amenities and the landlord or managing agent must be deemed ‘fit and proper’.  

Documents generally required for the application for an HMO licence include: 

• Energy Performance Certificate (EPC) 
• Electrical Installation Condition Report (EICR) 
• Gas Safety Certificate 
• Floor plans 
• Fire Safety Certificate 
• Tenancy agreement 

There may be additional documents required depending on which local authority the property is under. 

Want to know more? It’s also worth reading about fire safety regulations for landlords, what landlord insurance you need, and the full scope of legal requirements for landlords.

Additional licensing 

The Housing Act 2004 stipulates that local councils may introduce additional landlord licensing schemes in their areas, for HMOs which are not covered by mandatory licensing. 

Licence conditions of granting an additional licence include meeting the required standards for fire safety, amenities, gas and electrical safety and property management. 

Documents generally required for the application for an additional licence include: 

• Energy Performance Certificate (EPC) 
• Electrical Installation Condition Report (EICR) 
• Gas Safety Certificate 
• Floor plans 
• Fire Safety Certificate 
• Tenancy agreement 

In some local authorities, additional documents may be requested as part of the application. 

Selective licensing 

The act also permits councils to introduce selective licensing schemes. These can apply to all privately rented properties in an area whether or not they are HMOs. Selective licensing is intended for areas where there is a lot of private sector housing along with poor quality properties and high incidence of crime and anti-social behaviour. 

To be granted a selective licence, the proposed licence holder must pass the fit and proper test and DBS check, have no serious criminal convictions and should have an approved landlord accreditation. 

Properties must meet fire safety and property condition standards. Landlords must submit documentation including: 

• Gas Safety Certificate 
• Energy Installation Condition Report (EICR) 
• Energy Performance Certificate (EPC) 
• Floor plans 

How do I check if a property needs an HMO licence? 

If you let your property to five or more unrelated tenants who share facilities, you will need a mandatory licence. For other types of rental property, check your local council’s website to find out whether additional or selective licences are needed in your property’s neighbourhood. Tower Hamlets and Southwark are two London boroughs with selective and additional licensing schemes – we look at these schemes in detail below. 

How do I get a landlord licence? 

You should apply for a licence via your local council website. Check what information you need before you apply as this could include floorplans, room sizes, gas and electrical safety certificates and proof of building insurance. You may also need to join a landlord accreditation scheme, to help demonstrate you are a fit and proper person. 

How much will my licence cost? 

Fees for property licensing vary depending on the local authority and whether you need a mandatory, additional or selective licence. In some cases, licensing fees are paid in two instalments – on application and when your licence is issued.  

Visit your council website for current costs but, as an example, in Southwark the total cost of a mandatory licence is £1,575 plus £105 for each bedroom above the initial five bedrooms. 

An additional licence in the borough costs £1,365 and a selective licence is £945. In Tower Hamlets, however, you’ll pay £750 to £780 per licence and in the borough of Greenwich the fees are £508.50 for a mandatory licence and £872.59 for a selective licence. Find out more about fees in council areas across south and east London: 

• Hackney 
• Lewisham 
• Newham 
• Southwark 
• Tower Hamlets 

What happens if you don’t get a selective licence when you need one? 

If you don’t apply for the correct licence, you risk prosecution and a criminal record – or a civil penalty under the Housing Act 2004 of up to £30,000. If you rent out an unlicensed property, you may also find yourself on the London rogue landlords register which would make it difficult for you to rent out property in any borough in future. 

Are there exemptions from selective licensing? 

Some properties are exempt from mandatory and selective licensing. In Southwark, for example, these include some properties which have been converted into flats, or where the owner lives on the premises as a main residence. Properties that are under a temporary exemption notice, holiday lets and long leases (over 21 years) are also exempt.  

Check your local authority website or contact the housing team if you think your property may be exempt. 

How long does selective licensing last? 

Licences generally last for five years but in some cases, such as there being housing related problems or evidence of poor management, the local authority may decide to grant a licence for a short period of 1-3 years. 

Want to find out more? You may also find it useful to explore how to increase rent lawfully, how to improve your EPC rating, and rent guarantee insurance for landlords.

Landlord licence schemes in South and East London 

Landlord licensing in Southwark 

Southwark has four designated areas where selective licensing applies to the following wards: 

Designation 1 

• Newington 
• Champion Hill 

Designation 2 

• Faraday 
• St Giles 
• Goose Green 

Designation 3 

• North Walworth 
• Nunhead & Queens Road 
• Old Kent Road 
• Peckham 

Designation 4 

• Camberwell Green 
• Chaucer 
• Dulwich Hill 
• Dulwich Wood 
• London Bridge & West Bermondsey 
• Peckham Rye 
• Rotherhithe 
• Rye Lane 
• South Bermondsey 
• Surrey Docks 

Southwark has an additional licensing scheme applying to certain HMOs that are not covered by mandatory licensing. These include shared houses and smaller bedsits occupied by three or more people in two or more households. 

Landlord licensing in Tower Hamlets 

Tower Hamlets’ additional licensing scheme also covers HMOs where three or more people are living as two or more households sharing facilities. It applies across the borough except for the wards which are subject to selective licensing designations. 

The Tower Hamlets selective scheme applies to the Weavers, Whitechapel, and Banglatown & Spitalfields wards. It applies to all privately rented properties in these wards unless they are already covered by mandatory licensing. 

Landlord licensing in Greenwich 

The selective licensing scheme in Greenwich borough takes in Woolwich Riverside, Woolwich Common, Shooters Hill, Plumstead Common and Plumstead Glyndon wards. 

If you’re a landlord in south or east London who’s concerned about whether your property falls inside a selective licensing scheme, taking care of licenses is part of our service for landlords. We cover south east London areas including Deptford, New Cross and Canary Wharf. Contact us to discuss how we can help you today.