Across London, local councils are introducing licensing schemes aimed at improving the quality of rented homes. These programs—such as selective licensing, additional licensing, and HMO licensing—target private landlords to ensure homes are safe, well maintained, and fairly managed. This article looks at why these measures are being introduced, how they work, and what they mean for tenants and landlords.
Why Licences Matter in London
For too long, substandard rental homes, damp properties, and rogue landlords have blighted many London neighbourhoods—despite high rents. Research shows that 20% of privately rented homes are now covered by selective licensing schemes, affecting around 200,000 properties
Councils like Hackney and Lewisham have introduced borough-wide and targeted selective licensing to tackle issues such as damp, leaks, vermin, and unsafe living conditions. In Lewisham alone, 20,000 additional homes will now require a licence to ensure minimum health and safety standards are met.
Types of Licensing Schemes
London councils use different licensing schemes depending on local needs:
• Mandatory HMO Licensing: For large shared homes with 5+ tenants from multiple households, mandatory under housing legislation.
• Additional HMO Licensing: Covers smaller shared homes (3–4 occupants) in certain boroughs.
• Selective Licensing: Applies to all privately rented properties in specified wards or boroughs—even single-tenant homes.
These schemes give councils the power to licence properties, inspect conditions, and enforce improvements when necessary.
How Widespread Are These Measures?
London is at the forefront of licensing adoption:
• Around 87% of London boroughs now operate selective or additional licensing schemes.
• Hackney is consulting on extending selective licensing to 17 out of 21 wards, with fees up to £925–£1,400 per property.
• Lewisham’s scheme will cover around 25% of its housing stock, expected to include 20,000 new licences.
Despite some councils charging steep fees—for example, Southwark at £900, Redbridge at £1,698, and Greenwich charging per habitable room—these are investments in safer rented housing.
What Problems Are These Schemes Tackling?
1. Unsafe Living Conditions
Licensing allows councils to inspect homes and identify hazards like mould, cold, or fire risks. In Great Yarmouth, for instance, inspections under licensing led to a 73% reduction in high-priority issues and a 42% drop in medium concerns.
2. Badly Managed Properties
Many rogue landlords ignored maintenance. Licensing flags these issues and compels landlords to carry out necessary repairs.
3. Lack of Accountability
Tenants can check if their home is licenced and can challenge landlords via Rent Repayment Orders if not
Evidence: Do Licensing Schemes Work?
Data suggests yes—if enforced properly.
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Councils with licensing schemes identify 158 unsafe homes per authority on average, compared to just 63 in councils without schemes.
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High rates of compliance follow enforcement—around 85% of identified hazards are resolved compared to 65% without licensing .
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The London School of Economics and University of York studies show that licensing improves fire safety, maintenance, and management in HMOs
However, some worry about “postcode lotteries”, where some councils charge more or have stricter enforcement than others.
How Does It Affect Landlords and Tenants?
For Tenants
• More safe and well-maintained homes
• Transparency: tenants can check licences online
• Protection: tenants can apply for rent repayment if needed
For Landlords
• Upfront costs: licences range from £350 to over £1,400, valid for five years
• Requirements: must meet upkeep standards and safety regulations
• Non-compliance penalties: fines up to £30,000 per property and back-payment of up to 12 months’ rent
Proactive landlords can benefit from discounted fees by joining accreditation schemes, as seen in Hammersmith & Fulham.
Challenges and Criticisms
1. High Fees and Red Tape
Many landlords feel schemes are costly, burdensome, and sometimes unfair—charging more than mandatory HMO licences.
2. Inconsistent Implementation
Some local authorities lack resources to enforce these schemes consistently, weakening their effectiveness
3. Non-Compliance Rates
In London, only about 25% of properties that require licences have applied—leaving 75% unlicensed propertywire.com.
Solutions & Best Practices
To make licensing work for everyone:
• Councils must enforce fairly and consistently, not just generate revenue.
• Tiered fee structures (e.g., discounts for accredited landlords) can reduce the burden.
• Better communication is vital—landlords need clarity during consultation periods.
• Support for tenants, such as tools to check licences and channels for reporting violations, is essential.
• Resource investment ensures councils have adequate staffing for inspections and follow-up.
The recent lifting of the 20% cap on selective licensing areas by central government allows councils to expand these schemes if they consult thoroughly and act fairly .
What Does This Mean for Londoners?
With nearly 310,000 rentals in London requiring licensing, and only a quarter currently compliant, there’s room for growth . Well-managed licensing can:
• Raise living standards across the city
• Improve transparency and tenant rights
• Tackle rogue landlords and unsafe homes
• Strengthen neighbourhood quality
Conclusion
Council licensing schemes in London are a powerful tool to improve private rented housing. Although they come with costs, they also bring real improvements in safety, transparency, and accountability. The effectiveness of these schemes, backed by statistical evidence, suggests clear benefits—especially when implemented with fairness and proper funding.
Tenants gain safer, more secure homes, and responsible landlords can showcase their professionalism. As London’s rental market continues to grow, well-designed licensing will ensure that living standards rise with it. Whether you're a tenant, landlord, or community member, understanding and engaging with these schemes is key to improving life in our capital’s homes.
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