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London property licensing for landlords

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All you need to know about London property licensing

Any property that is privately rented in the UK may require a property license depending on the number of occupants, households and the borough in which the property is located. Whilst any property with five or more occupants from two or more households will require a mandatory HMO (House in Multiple Occupation) license, the requirements for other properties depend on the schemes in place, which vary across different local councils / local authorities, and new licensing schemes are being introduced regularly. As a landlord, you do NOT want to get caught out as failure to obtain a license, if one is required, can result in hefty fines and penalties.

Determining if a licence is necessary and, if so, which type, is crucial for compliance since each council has different rules, requirements, and costs for issuing a licence. Some councils have an additional licensing scheme for properties with three or more occupants from two or more households, and some also have selective licensing schemes, either borough-wide or for specific areas. If a landlord is found guilty of letting a property without the correct licence, the council may prosecute and is likely to impose the heaviest fines and penalties possible.

Penalties for non-compliance

⚠️ What are the consequences of not getting the correct licence?

London’s private rental sector is highly regulated and local councils are responsible for ensuring good housing standards, and their enforcement officers take this role very seriously. . Landlords who fail to comply with licensing requirements face substantial fines and penalties under the Housing Act 2004 and similar legislation. Ignorance is never a defence, and so its vital landlords keep a close eye on the licensing requirements where their property is.

Some of the severe actions councils take against landlords without a proper licence include

Civil penalties: Fines of up to £30,000 for letting a property without a proper licence.
Criminal prosecution: Renting homes without a licence is a criminal offence, with the potential for unlimited fines for intentional misconduct.
Rent repayment orders (RROs) : Tenants and councils can claim up to 12 months' rent paid to the landlord for renting an unlicensed property.
Decline eviction notices: Until the Renters’ Rights Act comes into force, landlords can still claim possession of their property via Section 21 notices. However, the notice is invalid if the rented property does not have a licence.
Compensations and other costs : In addition to fines, if found guilty of negligence resulting in tenant harm, additional victim surcharges and legal fees will apply to the landlord.

A few years ago, Brent Council prosecuted a landlord for failing to secure a licence for three rental properties in the Borough, who was fined £90,000. The penalty is proof how both Councils view failure to comply – licences for the three properties would have only cost £1,620, so it cost a considerable amount more and probably equated to 2 years rent.

Westminster landlords are the latest to need licences

The City of Westminster is the latest council to introduce a selective licence scheme for landlords across all its wards, barring Pimlico South, St James' and Vincent Square, which becomes effective on 24th November 2025. Westminster Council has its own terms and conditions which landlords must comply with. One requirement is that a landlord based outside the UK must now have a dedicated managing agent for the property, even if the property is located within a portered block where there is a manager and concierge for the entire block.

What should landlords be aware of?

Many landlords are not aware that there are two parts to being a landlord – part one is finding a tenant either directly or via a letting agent; part two is management of the property, namely dealing with the maintenance issues in the property and collecting the rent. Many landlords try to save money by not employing a management agent, and often tenants, when surveyed, say that the lack of a professional management agent gives them a below-par service; some even mentioned they worry about the lack of safety maintenance, such as smoke detectors. The compliance regulations applied today to landlords are very onerous and, as such, using a professional management company can reassure the tenant as well as ensure landlords are compliant. Benham and Reeves offer a complete one-stop lettings and management service tailored to the requirements of the council. Whether it is Westminster or any other London Borough, we can help our clients let their homes stress-free by ensuring we acquire the correct property licence.

Can a landlord find a tenant themselves and use a professional management agent to manage?

Westminster council requires overseas landlords to employ a professional management company to ensure their properties comply with all regulations. There are onerous requirements placed both on the landlord and on the agent, so its vital landlords are careful who they employ, as ultimately the landlord is responsible if anything goes wrong.

The good news is that if you find a tenant yourself or via a small lettings agent who you do not feel confident can manage the property correctly, then you can choose a different management agent to manage the property for you.

What types of property licences do landlords need?

Depending on which borough your property is in, you may need to get any one of these licences if you intend to rent it. Most licence payments are made in two instalments (Part A on application and Part B when the licence is ready to be issued).

Mandatory HMO licence

Applicable to all 32 London Boroughs, an HMO (House in Multiple Occupation) licence is compulsory for landlords letting their properties to five or more occupants from two or more households.

Additional licence

Followed across several Boroughs and their respective local councils, additional licences are issued to smaller HMOs with three or four tenants from two or more households.

Selective licence

Certain local councils that have to deal with issues such as poor housing conditions or anti-social behaviour may require landlords to obtain a special selective Licence to rent their properties.

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Which London Councils require property licences in 2025, and what is the cost?

As shown in the table below, there are currently 23 councils with an active additional licence scheme and 21 with a selective licence, with an HMO mandatory licence being required in every London council. However, certain councils do exempt specific wards from selective licences, which landlords should be aware of, along with the licence term (generally five years). You can click on any Borough in the table to check and apply for a landlord licence in that respective council.

Council	HMO licence cost	Additional licence cost	Selective licence cost
Barking & Dagenham	£1,500	£1,400	£950
Barnet	£1,560.38	£1,560.38	NA
Bexley	£340 + £310 per letting	NA	£800
Brent	£840	£840*	£640
Camden	£1,488	£1,488	NA
City of London	£1,050	NA	NA
Croydon	£285 per room	NA	NA
Ealing	£1,500	£1,300	£750
Enfield	£1,616	£1,276	£735
Greenwich	£508.5 per room	£508.5 per room	£872.59
Hackney	£950	NA	NA
Hammersmith & Fulham	£1,387	£597.50	£597.50
Haringey	£1,360	£1,360	£680
Harrow	£1,818	£1,818	£752
Havering	£1,329	£900	£900
Hillingdon	£1,577	NA	NA
Hounslow	£1,550 + £25 per household	£1,550 + £25 per household	NA
Islington	£335 per room	£335 per room	£800
Kensington & Chelsea	£1,450	£1,450	NA
Kingston upon Thames	£285 per room	NA	NA
Lambeth	£520 per room	£520 per room	£923
Lewisham	£500	£500	£640
Merton	£1,616.12	£1,450	£692
Newham	£1,400	£1,250	£750
Redbridge	£1,664	£1,664	£890
Richmond upon Thames	£1,647 for 3 bedrooms	NA	NA
Southwark	£1,575	£1,365	£945
Sutton	£250	NA	NA
Tower Hamlets	£781.5 + £54.5 per room	£756	£747
Waltham Forest	£1,650	£1,200	£895
Wandsworth	£1,647 for 3 bedrooms	£1,450	£850
City of Westminster	£1,540	£1,540	£995

* Effective from 02/02/2026

Source: Local London councils last updated on 5 November 2025

Disclaimer: Licensing costs are variable and subject to change at the discretion of each council. The values provided in the table are sourced from the respective council's website, last updated on 5 November 2025.

How can landlords ensure they get the necessary licence?

Landlords must be aware of their rights and responsibilities before letting a property to tenants. Following a step-wise checklist or hiring the right agency to handle it for you can ensure you are on the right track.

Check your postcode or ward

For different councils, licences may apply only to specific wards, while others are exempt and vice versa. For example, in Greenwich, only landlords in Woolwich Riverside, Woolwich Common, Shooters Hill, and Plumstead need a selective licence, while in Lambeth, all wards except Vauxhall, Waterloo, and South Bank require one.

Find out the licence you need

Whether it is an HMO, additional or selective licence, you must be able to pick the right one that fits your property type and rental agreement.

Apply to the right council

Every council has its own website with property licensing information and the correct application process, but be warned, every council has a different form and different requirements, and any errors in the application could cause the licence to be incorrectly issued and therefore not valid, or the licence to be rejected.

Property inspections and checks

While inspections are mandatory for HMOs, councils may also conduct a physical check of the property before issuing additional or selective licences. If there are any outstanding compliance issues or work required, landlords and their agents may be asked to complete them first. Inspections also take place during the period in which the license is active.

Updates and renewals

Since each local council determines the rules on its own property licence schemes, landlords need to keep updated about changes to licensing terms and their duration to make timely renewals and avoid penalties.

Are there any risks of hiring an agent without the right expertise?

Every council has their own specific terms and requirements when it comes to property licences. If your agent is not familiar with every Council and their particular rules or the agent lacks the relevant expertise mandated by the Council, then letting a property could be a problem. While fines, penalties and Rent Repayment Orders are definitely scary, the additional strain placed on landlord-tenant relationships and a bad reputation can affect the landlord in future lettings, leading to voids, lost rent and further losses.

How can landlords ensure they have the right agent?

Since every council has its own process, appointing an agent with compliance knowledge and a local presence across the whole of London is a smart move. Benham and Reeves have 21 local branches, each with its own lettings and management teams. This local focus, boroughs. A stellar track record in compliance ensures we have every box ticked to make a landlord’s life as easy and penalty-free as possible, meaning the investment simply works without hassle.

In addition to our London-wide network of branches, Benham and Reeves also has a legacy of over six and a half decades of serving London landlords and investors. There have been many changes to letting laws and ownership rules over the years, and despite all that, we have continued to help our landlords maximise their returns.

Risks of wrong agent

Unlicensed agents, poor record-keeping, missed renewal deadlines, inadequate safety checks, and lack of borough-specific knowledge.

Benefits of Benham & Reeves

Fully licensed agents, complete compliance management, proactive renewals, all 32 boroughs covered, and dedicated local teams.

Protected investment

Avoid fines and rent repayment orders, maintain ability to evict legally, protect property value, and ensure peace of mind.

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