Do I Need a Property Licence in Islington?

Start With Occupancy, Then Check the Ward

The decision isn't complicated once you follow the right sequence. Two questions determine everything: how many people live in the property and what households they form, then where the property sits geographically.

Step 1: Count Occupants and Households

Under the Housing Act 2004, a "household" is a family unit. A married couple is one household. A couple and their children are one household. Two unrelated friends are two separate households — even if they share a single joint tenancy.

Five or more people from two or more households sharing basic amenities → you need a mandatory HMO licence. This applies in every ward across the entire borough, permanently.

Three or four people from two or more households → you need an additional HMO licence. This also applies borough-wide under Islington's local designation, running from 1 February 2026 to 31 January 2031.

A single person, a couple, a family, or two unrelated sharers → you might need a selective licence, depending on the ward.

Step 2: Check the Ward (Selective Licensing Only)

If your property doesn't trigger HMO licensing, the next question is location. Selective licensing applies in 10 wards:

Scheme 1 (May 2024 – May 2029): Finsbury Park, Hillrise, Tollington

Scheme 2 (November 2026 – November 2031): Barnsbury, Caledonian, Highbury, Junction, Laycock, Mildmay, Tufnell Park

No selective licensing: Arsenal, Bunhill, Canonbury, Clerkenwell, Holloway, St Mary's & St James', St Peter's & Canalside

If your non-HMO rental sits in one of the seven undesignated wards, no property licence is currently required.

Use the council's address lookup at propertylicensing.islington.gov.uk to confirm the ward — postcodes and street names don't reliably align with ward boundaries.

The HMO Override

If a property qualifies as an HMO, the HMO licence takes precedence. You don't need a selective licence on top. This matters because some landlords in selective licensing wards panic about needing both — you only need the HMO licence.

Converted Blocks (Section 257)

If you own a building that's been converted into self-contained flats, and the conversion didn't comply with 1991 Building Regulations, and less than two-thirds of the flats are owner-occupied, the building needs a Section 257 HMO licence under Islington's additional licensing scheme. This applies even though the individual flats aren't shared.

Exemptions

A handful of properties are exempt under Schedule 14 of the Housing Act 2004:

• Properties occupied by a resident landlord with no more than two lodgers
• Properties managed by public-sector bodies, registered social landlords, or educational institutions with approved codes of practice
• Properties where a Temporary Exemption Notice (TEN) has been granted — but these last a maximum of six months and require evidence of the imminent change in the property's status

The Cost of Guessing Wrong

Assuming you don't need a licence and getting it wrong means operating an unlicensed property. Since May 2026, civil penalties reach £40,000 per offence. Islington's starting point for first-time non-compliance is around £12,000. Tenants can claim rent repayment orders covering up to 24 months of gross rent.

Running through the decision sequence properly takes ten minutes. Getting it wrong can cost tens of thousands.

The Islington Landlord Licensing Guide includes a scheme decision worksheet that walks through every scenario step by step.

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