HMO Licensing in London: A Borough-by-Borough Primer

HMO licensing in London is a legal permission you need to let many shared houses, and it operates on three levels: mandatory licensing set nationally for larger HMOs, plus additional and selective licensing that each of London's 33 local authorities can introduce for its own area. Because the additional and selective schemes are decided borough by borough — and renewed on rolling cycles — the rules genuinely differ depending on the postcode, which is why a borough-by-borough check is the only reliable approach. This primer explains the three types, the 2026 picture, what licences cost, the standards you must meet, and the penalties for getting it wrong.

What counts as an HMO?

The HMO definition is national; the licensing requirement is what varies. A three-person shared house is an HMO everywhere, but whether it needs a licence depends on whether the relevant borough runs an additional licensing scheme covering it.

The three types of HMO licensing

Understanding which licence applies starts with knowing the three distinct regimes. They stack — a property can fall under mandatory licensing, or under a local additional scheme, or sit inside a selective licensing area even if it's a single-family let.

The borough-by-borough picture in 2026

This is the part that trips landlords up. London is not one licensing area — it is 33 local authorities, each setting its own additional and selective schemes, with different boundaries, fees and renewal dates. A property a few streets from a borough boundary can face a completely different requirement to one across the line.

Rather than memorise a list that goes out of date the moment a scheme is renewed, work to a method:

1. Identify the licensing authority for the property's postcode — the relevant London borough council.
2. Check mandatory first. If five or more people in two or more households will share, a mandatory licence is required wherever the property is.
3. Check the borough's additional licensing designation. Look on the council's website for the current scheme, its boundary map and which HMO sizes it covers.
4. Check for selective licensing. Confirm whether the ward falls inside a selective scheme that catches even single lets.
5. Check for an Article 4 direction (see below) before assuming you can create a new small HMO.
6. Note the renewal date. Schemes lapse and are re-made; a property that needed no additional licence last year may need one now, and vice versa.

As a general 2026 pattern, a large number of London boroughs operate borough-wide or partial additional licensing, and several run selective licensing in targeted wards — but the only safe source is the council's live designation for the exact address. Treat any blanket statement that "borough X requires/doesn't require a licence" with caution.

Article 4 directions and planning

This is a crucial and often-missed distinction: an HMO licence and HMO planning permission are separate consents. In an Article 4 area you can hold a valid licence and still be in planning breach if you created the HMO without permission — or be unable to create one at all. Anyone planning to convert a single dwelling into a small HMO in London must check for an Article 4 direction before doing anything else, because it can stop the strategy dead.

What an HMO licence costs in London

Licence fees are set by each borough and reviewed regularly, so they vary widely. As a planning range for 2026, expect somewhere between roughly £600 and £1,500+ for a five-year licence, often split into an application fee (payable on submission) and a grant fee (payable when the licence is issued). Fees commonly scale with the number of occupiers or units, and some councils discount for accredited landlords or early renewal.

• Application vs grant fee: many boroughs split the total in two — budget for both.
• Per-occupier or per-unit loading: larger HMOs usually cost more.
• Accreditation discounts: membership of a recognised landlord accreditation scheme can reduce the fee in some boroughs.
• Renewal, not one-off: a licence typically lasts up to five years, then must be renewed — build the recurring cost into your model.

Always confirm the current figure on the relevant borough's website before budgeting — published fees move.

The standards a licensed HMO must meet

A licence is granted only where the property meets the required standards and the licence holder is a fit and proper person with adequate management arrangements. The core standards cover:

• Room sizes: national minimum sleeping-room sizes apply — broadly 6.51 m² for one adult, 10.22 m² for two adults sharing, and 4.64 m² for a child under ten. Rooms under 4.64 m² cannot be used for sleeping. Boroughs can set higher local standards.
• Amenities: a minimum number and standard of bathrooms, toilets and kitchen facilities relative to the number of occupiers.
• Fire safety: interlinked smoke alarms, appropriate fire doors, clear escape routes, and a fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005.
• Gas and electrical safety: a current annual gas safety certificate and a valid five-yearly EICR.
• Management: compliance with the HMO management regulations — maintenance, cleanliness of shared areas, and contact details displayed for the manager.

Councils inspect, and a licence can be granted with conditions or refused if standards aren't met. Bringing a property up to standard is frequently the largest cost of running an HMO — plan for it before committing.

Penalties for getting it wrong

Operating a licensable HMO without a licence is a criminal offence, and enforcement in London is active. The consequences can be severe:

• Prosecution leading to an unlimited fine, or
• Civil penalty of up to £30,000 per offence, which a council can impose as an alternative to prosecution.
• Rent repayment order: tenants, or the council on their behalf, can reclaim up to twelve months' rent.
• No Section 21: an unlicensed landlord cannot use a Section 21 notice to regain possession.
• Rogue landlord database and banning orders for serious or repeat offenders.

The economics are stark: the cost of compliance is almost always far lower than the cost of a single enforcement action. That is the lens to apply before letting any shared property in London.

Getting it right: a practical checklist

Before you let a shared property in London, work through this:

1. Confirm whether the property is an HMO under the Housing Act 2004 definition.
2. Check mandatory licensing (5+ people, 2+ households).
3. Check the borough's current additional and selective designations for the postcode.
4. Check for an Article 4 direction and whether planning permission is needed.
5. Confirm the property meets room-size, amenity, fire and safety standards.
6. Apply for the licence and budget for both the fee and any works.
7. Diarise the renewal date — schemes and licences both expire.

If any step is unclear, take professional advice before letting. For how this licensing picture interacts with control strategies, see our companion guide on rent to rent in the UK.

This is general information, not financial, legal or tax advice — seek independent professional advice and always confirm the current licensing position with the relevant London borough.

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