HMO Licence in London: Borough Fees, Schemes, and Application Tips

HMO licensing in London is complicated by the fact that the 32 London boroughs and the City of London administer licensing locally, with fees, portal systems, and standards that vary. The mandatory national scheme applies everywhere, but additional and selective schemes vary from borough to borough.

The Mandatory Scheme: Same Rules, Different Fees

The mandatory HMO licensing threshold is the same across all London boroughs: five or more people from two or more households sharing amenities. What differs is the fee.

These are indicative figures. Each borough updates its fee schedule periodically, and the split between Part A (non-refundable processing fee) and Part B (grant fee) follows the Hemming ruling — but the proportions differ. Kensington & Chelsea front-loads the fee with a £1,004 Part A, meaning you have over a thousand pounds at risk if your application is rejected or withdrawn.

Boroughs with Additional Licensing

Several London boroughs run additional licensing schemes that capture smaller HMOs (three or four people from two or more households):

• Newham — boroughwide additional licensing, except Royal Victoria and Stratford Olympic Park. The current additional designation is active to 31 December 2028.
• Camden — boroughwide additional licensing scheme
• Tower Hamlets — additional licensing in designated wards
• Southwark — additional licensing alongside selective licensing in parts of the borough
• Waltham Forest — additional licensing in designated areas

If your property has three or four sharers from different households, check whether your borough runs an additional scheme. Without one, a small HMO below the mandatory threshold does not need a licence — but many London boroughs have plugged this gap.

Boroughs with Selective Licensing

Selective licensing requires all privately rented properties in designated areas to be licensed, regardless of whether they are HMOs. Several London boroughs use selective licensing:

• Newham — selective licensing in 22 of 24 wards; Royal Victoria and Stratford Olympic Park are excluded.
• Barking & Dagenham — selective licensing across large parts of the borough
• Hackney — selective licensing in designated wards

A single-family let in a selective licensing area needs a licence even though it is not an HMO.

London-Specific Complications

High Fees and Non-Refundable Part A Risk

London fees are among the highest in England. Losing a Part A fee to an incomplete or rejected application is a more expensive mistake in London than in most other cities. Have every document ready before you start the portal — gas certificate, EICR, EPC, fire risk assessment, floor plans, proof of title.

Concentration of HMOs

Some London boroughs restrict the proportion of HMOs per street through planning policy, and Article 4 Directions remove permitted development rights for C3-to-C4 conversions. The planning permission requirements are separate from licensing and must be checked independently.

Room Sizes in Converted Properties

Many London rental properties are Victorian or Edwardian conversions with irregular room shapes, sloping ceilings, and small bedrooms. The statutory minimums (6.51 m² for a single room, 10.22 m² for a double) apply strictly, with the 1.5-metre ceiling height deduction. Attic bedrooms in London properties frequently fall below the threshold once the deduction is applied.

Multiple Schemes Overlap

In boroughs like Newham, three schemes run simultaneously. The hierarchy — mandatory supersedes additional, additional supersedes selective — determines which licence your property needs. You only hold one licence, but you need to apply for the correct type.

Tips for London Landlords

1. Check your specific borough's licensing page — do not rely on general London-wide guidance. Schemes, fees, and local standards change on a borough-by-borough basis.
2. Budget for the full two-part fee — London Part A fees run from £450 to over £1,000. Losing this to an incomplete application is avoidable.
3. Check processing times — these vary by borough. A duly-made application protects you from prosecution for operating an unlicensed HMO while the council processes it.
4. Ask about accreditation discounts — Kensington & Chelsea offers a £200 discount for accredited landlords. Other boroughs have similar schemes.
5. Keep certificates current — with long processing times, a gas certificate that expires during the wait can create problems. Renew anything that will expire within the next six months before applying.

Our HMO Licensing Guide for England covers the national framework and the council-by-council variations, including a fee planning tool for the two-part payment structure that London boroughs use.

See more England guides →