Islington Selective Licensing Exemptions: Which Properties Are Exempt?

Your property sits in one of Islington's 10 wards designated for selective licensing. Scheme 1 is in force in three wards; Scheme 2 is due to take effect in seven more on 23 November 2026. Before paying the £850 fee, check whether the applicable scheme is in force and whether an exemption applies.

The HMO Exemption

The most common exemption is also the most misunderstood. If a property qualifies as an HMO under either mandatory or additional licensing — meaning three or more occupants from two or more households sharing facilities — the HMO licence takes precedence. Section 79(2) of the Housing Act 2004 exempts that property from selective licensing.

You still need a licence. You just need the HMO licence, not the selective one. The fee is different (£900-plus for an HMO versus £850 for selective), the conditions are stricter, and the application requires floor plans and fire safety documentation that selective licensing does not.

If you are unsure whether the property is an HMO or a single-household let, count the occupants and households first. Applying for the wrong licence type wastes the non-refundable Part A fee.

Holiday Lets and Short-Term Accommodation

A 90-night London short-term letting limit does not by itself establish an exemption from Islington selective licensing. Check the council's scheme terms for the property's use before relying on an exemption.

Registered Social Landlords and Public Bodies

Properties managed by registered providers of social housing (housing associations), local authorities, the NHS, police, fire authorities or the armed forces are exempt. Properties occupied under leases granted by educational institutions operating under an approved code of management practice are also excluded.

The exemption covers properties managed by public sector bodies, registered social landlords, health authorities, and educational institutions operating under approved codes of practice. A private landlord's lease to one of these bodies does not automatically establish that the exemption applies; confirm the specific arrangement with the council.

Resident Landlords with No More Than Two Lodgers

A resident landlord who lives in the property and takes in no more than two lodgers is exempt from HMO licensing under Schedule 14 of the Housing Act 2004. That HMO exemption does not itself establish a separate selective-licensing exemption. If the resident landlord lets to three or more lodgers, the property qualifies as an HMO under Islington's Additional Licensing scheme.

Temporary Exemption Notices (TENs)

If you are actively taking steps to remove the property from the licensing requirement — such as serving a lawful notice to regain possession or converting the property back to single-family use — you can apply for a Temporary Exemption Notice. A TEN provides three months of legal relief. In exceptional circumstances, the council may grant a single three-month extension, bringing the maximum to six months.

A TEN is not a stalling tactic. The council will refuse the application if you cannot demonstrate clear, documented evidence that the property's status is genuinely about to change.

What the Exemptions Do Not Cover

Being a small landlord, a first-time landlord or an accidental landlord is not an exemption. Owning only one property is not an exemption. Having a good track record with previous tenants is not an exemption. If the property is rented to a single household in a designated ward and none of the statutory exemptions above apply, a selective licence is required.

For the full decision sequence — from address check to exemption evaluation to licence application — our Islington Landlord Licensing Guide walks through every step of identifying which licence (if any) your property needs.

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