Barking and Dagenham Licence Exemptions and Temporary Exemption Notices

LBBD runs borough-wide selective and additional HMO licensing — but not every privately rented property actually needs a licence. A handful of statutory exemptions exist, and in certain transitional situations you can apply for a Temporary Exemption Notice to buy time. The problem is that landlords frequently assume an exemption applies when it doesn't, and that mistake can lead to civil penalties of up to £30,000 per offence under the Housing Act 2004; the Renters' Rights Act 2025 allows penalties up to £40,000 for serious, fraudulent, or persistent housing breaches.

Statutory Exemptions

These exemptions come from the Housing Act 2004 (Schedules 14 and 15) and the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006. A property is exempt from LBBD licensing if it falls into any of these categories:

Social housing. Properties managed or controlled by a local authority, a Registered Provider of Social Housing (housing association), or a public body don't need a private rented sector licence.

Owner-occupied properties. If you own the freehold or long leasehold and live in the property as your sole or main residence, it's not a rented dwelling and no licence is required.

Family lettings with no rent. If you let to a family member and charge no commercial rent or financial consideration, the property is exempt. The moment any rent changes hands — even below-market — the exemption vanishes.

Resident landlords with up to two lodgers. If you live in the property and take in no more than two lodgers alongside your single-family household, no licence is needed. Three lodgers forming two or more households would trigger additional HMO licensing.

Holiday lets, long leases, and commercial tenancies. Short-term holiday lets, tenancies under leases exceeding 21 years, and business-use tenancies are outside the licensing regime.

Student accommodation managed by educational institutions and temporary shelters run by registered charities are also exempt.

Properties under a Management Order. If LBBD has taken control through an Interim or Final Management Order, or if a Temporary Exemption Notice is already active, the property is exempt for the duration.

What Doesn't Count as Exempt

The most common misunderstanding is that single-family lets don't need a licence. Under LBBD's borough-wide selective licensing scheme (live 6 April 2025 to 5 April 2030), every privately rented dwelling occupied by a single household or two unrelated sharers requires a selective licence — unless one of the exemptions above applies. "I only rent to one family" is not an exemption.

Another frequent mistake involves Section 257 HMOs — converted blocks of flats where the conversion didn't meet Building Regulations and less than two-thirds of the flats are owner-occupied. While the overall building is exempt from mandatory and additional HMO licensing, each individually rented flat within the block still needs its own selective licence. The building-level exemption doesn't cascade down to individual tenancies.

Temporary Exemption Notices (TENs)

Sections 62 and 86 of the Housing Act 2004 allow landlords and managing agents to apply for a Temporary Exemption Notice when the property is actively transitioning out of needing a licence. LBBD grants TENs in circumstances like these:

• The property is under an active sales contract and is being sold
• You've served formal eviction proceedings to achieve vacant possession before sale or owner re-occupation
• The property is being converted to commercial premises under approved planning permission
• A mortgage default has put the property into receivership

A TEN lasts a maximum of three months. LBBD can extend it once for another three months under exceptional circumstances, giving an absolute ceiling of six months. TENs cannot be renewed beyond that, and they can't be used to simply delay licensing.

Death of a licence holder. If the named licence holder dies, the property automatically receives a statutory three-month temporary exemption from the date of death. This gives executors or beneficiaries time to either apply for a new licence or arrange the sale of the property.

How to Apply for a TEN

Contact the PRPL team ([email protected] or 020 8724 8898) to confirm the current TEN application route and the evidence required. Be prepared to show that the property is genuinely ceasing to be licensable — for example, through a sale contract, court order, planning approval, or receivership documentation. If LBBD refuses the application, there's no exemption and you need to apply for a licence immediately.

Assuming an exemption applies when it doesn't is one of the costliest mistakes a Barking and Dagenham landlord can make. Operating without a licence for more than three months triggers the penalty threshold: a restricted one-year licence instead of the standard five-year term, with all fee discounts forfeit.

The Barking and Dagenham Landlord Licensing Guide includes a scheme selection worksheet that walks you through every exemption test before you touch the council's portal.

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