Licensing regulations are becoming increasingly widespread, and they may apply to your rental property even if you don’t expect them to. Many local councils, particularly in London, now enforce Selective Licensing, which means all rental properties not just HMOs may require a licence.
If you let a property to multiple tenants from different households, you might also need an Additional Licence. Furthermore, if your rental accommodates five or more tenants sharing facilities, Mandatory HMO Licensing is required by law.
Failing to secure the correct licence can be costly, with penalties such as rent repayment orders of up to 12 months’ rent. A simple check with your local council could save you thousands of pounds.
In this article, we’ll cover:
✔️ When a licence is required
✔️ Key regulatory changes coming in 2025
✔️ Risks of renting without the correct licence
✔️ The application process and how we can help
When Do You Need a Licence?
There are three primary types of property licensing that landlords must be aware of. You will need a licence if any of the following apply:
- Selective Licensing: If your local council has introduced Selective Licensing, you must obtain a licence for all rental properties in that area, not just HMOs. This is becoming more common, particularly in London, and is usually implemented in areas where councils seek to address poor housing conditions or anti-social behaviour. Unsure whether your area is affected? Contact your local authority to check
- Additional Licensing: If you rent to at least three tenants from two or more different households (i.e., separate family groups) who share facilities such as a kitchen or bathroom, you may require an Additional Licence. This scheme ensures oversight for smaller shared properties that are not classified as HMOs but still require regulation
- Mandatory HMO Licensing: If your rental property houses five or more tenants from two or more households, it is classified as an HMO and requires a Mandatory HMO Licence. This ensures the property meets safety standards and that tenants are provided with adequate living conditions.
What Licensing Changes Should You Expect in 2025?
In December, the government granted local councils in England greater authority to introduce Selective Licensing schemes without requiring central government approval. As a result, several councils are already moving forward with new regulations:
- Blackpool Council has introduced a Selective Licensing scheme covering over 20% of the borough. From 1st April 2025, landlords in affected areas must obtain a licence for each rental property they own
- Barking and Dagenham will implement a borough-wide Selective Licensing scheme from 6th April 2025, requiring all privately rented properties to be licensed
- Lambeth Council plans to roll out a second Selective Licensing scheme covering most of the borough (excluding Waterloo, South Bank, and Vauxhall). With nearly 50,000 privately rented homes in the area, the scheme is expected to be in place by July 2025.
These are just a few examples, but more councils are expected to follow suit. To stay ahead, regularly check your local council’s website for updates on licensing requirements in your area.
The Risks of Renting Without the Correct Licence
Non-compliance with property licensing regulations can result in severe consequences, including:
❌ Hefty fines and potential rent repayment orders for up to 12 months’ rent
❌ Management orders, where the council takes control of the property
❌ Restrictions on evictions, making it harder to regain possession of your property
❌ Bans on renting in severe cases, impacting your ability to operate as a landlord
❌ Reputational damage, making it more challenging to attract tenants in the future
Ensuring your property is properly licensed not only protects your investment but also demonstrates your commitment to providing quality housing.
Is Applying for a Licence Difficult?
Fortunately, the licensing process is relatively straightforward, though requirements vary by local council. Generally, you will need to:
✅ Complete an application form, typically available online
✅ Provide property details, including size, tenant numbers, and available facilities
✅ Submit safety certification (e.g., EPC, gas safety, and electrical safety certificates)
✅ Detail your property management approach and tenant policies
✅ Arrange for a council inspection, if required, before licence approval
Need Help with Licensing? Let Us Handle It for You
We understand that property licensing can be overwhelming, but as your trusted letting agent, we are here to help. The Horizon team stays up to date with the latest regulations and can guide you through the process, ensuring your property remains compliant and profitable.
Contact Horizon today to discuss your licensing requirements and let us take the hassle out of compliance!
Stay informed. Stay compliant. Stay ahead.
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