Definition
It’s very important for landlords to understand what a London property licensing means, but it can be a very complicated regulation. Any misunderstanding with this long and arduous housing regulation could mean issues for both you and your property (or properties). This is why we’ve created this guide to make it easier for you to understand the private rental sector better and what a London property licence is all about.
Local authorities use property licencing schemes to regulate the standards of the private rented sector. Its aim is to ensure high standards when it comes to the quality of private housing, and namely, to avoid putting tenants at risk from criminal landlords.
The Three Schemes in Operation
In London, there are three of these licences that you need to be aware of:
- Mandatory HMO (House in Multiple Occupation)
- Additional
- Selective
Mandatory HMO
Unlike Section 257 HMO of the housing act, mandatory HMO covers a property that is rented out to at least three people from separate households (i.e. a house share). As a landlord, you will require a Mandatory HMO licence if you are renting out a property in London to five or more individuals from different households.
It’s also important to note you will need a Mandatory HMO licence per property – one licence will not cover all properties if you have more than one – and it will last for five years.
Additional
Additional licensing schemes operate under the discretion of the local authorities. These will apply to properties with multiple tenants that do not fall under the category of a Mandatory HMO licence. For example, an additional licence could be required for smaller HMOs that have three tenants of multiple households, so it’s always important to check what your local authority outlines for this.
Selective
This licence can occur when local authorities decide to implement a licence scheme for all rental properties in one specific geographical area. For example, in regard to a London property licence, a selective licence may be needed for any rental properties within a specific borough of London. Selective licencing schemes may be implemented in response to poor housing conditions or areas of crime.
Some of the London boroughs which run a selective licensing scheme include Ealing, Harrow, and Tower Hamlets.
How much does it cost?
Because licences vary, there is no fixed cost, and each local authority will set its own price. There can be variations in prices for the same licence depending on which London borough your property is in. As a ballpark figure, you can expect a license to be at least several hundred pounds.
How do I get a licence?
You can apply for the licence you need through your local council, and find out the fee there, too. You will need to fill out an application form and submit the documentation asked of you to show that you comply and meet their minimum criteria.
If you need any help understanding London licences and your property requirements, don’t hesitate to contact the team at Yuno.
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