Housing Act 2004 Licensing in Hammersmith and Fulham: What It Means for Landlords

The Law That Gives LBHF Its Licensing Powers

Every property licence Hammersmith and Fulham issues traces back to the Housing Act 2004. The Act created the legal framework that lets English councils require landlords to licence privately rented properties, and it defines the three types of licence a property can need. Understanding which part of the Act applies to your property tells you which scheme you fall under — and what the council can do if you get it wrong.

Part 2: Mandatory and Additional HMO Licensing

Part 2 of the Housing Act 2004 (Sections 55–77) covers Houses in Multiple Occupation. It operates at two levels:

Mandatory HMO licensing applies nationally. Since the 2018 expansion (SI 2018/221), a property occupied by five or more people forming two or more households and sharing facilities generally needs a mandatory HMO licence. Qualifying purpose-built flats in blocks of three or more self-contained flats are excluded from mandatory licensing and fall under LBHF's additional scheme. The national rule applies in every council area in England without a local designation.

Additional HMO licensing is a discretionary power. Section 56 lets a council designate its whole area, or specific parts, for additional licensing of HMOs not covered by mandatory licensing. Hammersmith and Fulham activated this borough-wide from 5 June 2022. It runs until 4 June 2027 and covers properties with three or four occupants from two or more households, qualifying purpose-built HMO flats in blocks, and Section 257 converted buildings.

The practical result: an ordinary shared property with three or four unrelated sharers anywhere in the borough needs an additional HMO licence (£755), while a non-exempt five-bedroom HMO with five unrelated sharers needs a mandatory HMO licence (£1,656 base fee, plus £183 per additional bedroom).

Part 3: Selective Licensing

Part 3 (Sections 79–100) gives councils the power to require licences for non-HMO rental properties in specific areas. This is the tool LBHF uses for its 24-street selective licensing scheme, also running from 5 June 2022 to 4 June 2027.

On those 24 designated streets, a privately rented non-HMO needs a selective licence — including a property let to a single person, a family or two unrelated sharers. Off those streets, a single-household let does not need any licence (unless the occupancy changes and it becomes an HMO).

A significant change came on 23 December 2024 through the General Approval 2024. Before that, councils wanting to designate selective licensing covering more than 20% of their area or 20% of their private rented stock needed Secretary of State approval. The General Approval removed that ceiling, meaning councils can now expand selective licensing without ministerial sign-off. Whether LBHF extends its 24-street scheme or goes borough-wide when the current designation expires in June 2027 is still an open question.

Part 1: The Housing Health and Safety Rating System

Part 1 (Sections 1–54) does not create licences, but it gives the council inspection and enforcement powers over all residential properties through the Housing Health and Safety Rating System (HHSRS). Licensed properties are inspected against HHSRS standards — Category 1 hazards (excess cold, fire, structural problems, severe damp and mould) must be eliminated.

Under the Awaab's Law provisions now integrated into private sector enforcement, reported damp and mould hazards trigger mandatory investigation and remediation timescales. This applies to licensed and unlicensed properties alike, but licensed landlords face the additional risk that a Category 1 hazard can be grounds for licence revocation.

How the Pieces Fit Together

The Act creates a hierarchy. Mandatory HMO licensing takes priority for non-exempt properties meeting the five-person threshold. Additional HMO licensing covers three-to-four-person shared properties, qualifying purpose-built flats in blocks of three or more self-contained flats, and Section 257 HMOs. Selective licensing is residual, applying only to non-HMO properties on one of the 24 designated streets.

You cannot choose which scheme to apply under based on fees. Applying under the wrong part of the Act results in rejection, a lost Part 1 fee, and having to start again.

The Hammersmith and Fulham Landlord Licensing Guide maps this hierarchy into a decision flowchart: count occupants, count households, check the address, and the correct licence type falls out.

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