Lewisham Section 257 Converted Block Licensing: What Landlords Need to Know

Section 257 of the Housing Act 2004 defines a specific category of HMO: a building that has been converted into self-contained flats where the conversion did not comply with the Building Regulations 1991 (or later applicable regulations) and fewer than two-thirds of the flats are owner-occupied. These are sometimes called "converted blocks" or "section 257 HMOs."

In Lewisham, the treatment of these buildings under the borough's licensing schemes catches landlords out because the building-level rule and the flat-level rule work differently.

The Building Is Excluded from Additional HMO Licensing

Lewisham's additional HMO licensing scheme explicitly excludes section 257 converted blocks. The scheme targets smaller HMOs with three or four occupants sharing facilities within a single dwelling — it does not apply to the converted block as a whole, even if the building meets the section 257 definition.

This means the freeholder or building owner does not need to obtain an additional HMO licence for the entire block.

Individual Flats Can Still Require a Licence

The exclusion applies to the building, not to the individual flats inside it. Each self-contained flat within a section 257 block is assessed on its own occupation:

• Single household or two unrelated sharers — the flat needs a selective licence if it is in one of Lewisham's 16 designated wards. The selective scheme runs from July 2024 to June 2029 and covers most of the borough, with only Blackheath and Telegraph Hill excluded.
• Three or four unrelated occupants sharing facilities — the flat itself qualifies as an HMO in its own right and needs an additional HMO licence under Lewisham's borough-wide scheme (running until April 2027).
• Five or more occupants from two or more households sharing basic amenities — the flat needs a mandatory HMO licence under the national scheme.

The key distinction: the section 257 exclusion removes the building from additional licensing. It does not remove any individual flat from licensing based on that flat's own occupancy.

Purpose-Built Blocks Are Different

Purpose-built blocks of flats — those built as flats from the outset, not converted from a house — are treated separately. If a flat within a purpose-built block is occupied by three or four unrelated people sharing facilities, it can trigger additional HMO licensing. The building itself does not need a building-level licence either way.

How to Check Whether Your Building Is a Section 257 HMO

A building qualifies as a section 257 HMO if all three conditions are met:

1. It was converted into self-contained flats (it was originally a single building, typically a house)
2. The conversion did not comply with the Building Regulations in force at the time, or the 1991 Regulations if converted before they applied
3. Fewer than two-thirds of the flats are owner-occupied

If you are unsure about the conversion's compliance history, the council's Private Sector Housing Agency can advise. Contact them at [email protected] or 020 8314 6420.

What This Means in Practice

If you own a flat in a converted block in Lewisham and you let it to a single household or a couple of sharers, you almost certainly need a selective licence — the building's section 257 status does not shield individual flats from selective licensing.

If you own the entire building, the building itself does not need a licence, but each separately let flat within it does, based on its own occupancy.

The Lewisham landlord licensing guide covers the application process, fees and document requirements for all three schemes, including the specific rules that apply when licensing individual flats within larger buildings.

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