Newham HMO Licence: Additional and Mandatory Licensing Explained

Newham has one of the lowest HMO thresholds in London. While most boroughs only require an HMO licence for properties with five or more tenants, Newham's additional licensing scheme catches houses and flats shared by as few as three unrelated people. If you rent to sharers in Newham, you almost certainly need an HMO licence — and the consequences of getting it wrong include fines of up to £40,000 under the Renters' Rights Act 2025 framework and your tenants claiming back up to 24 months of rent.

Two HMO Schemes Running Side by Side

Newham operates both additional HMO licensing and mandatory HMO licensing simultaneously, alongside its selective licensing scheme for single-family lets.

Mandatory HMO licensing applies borough-wide to every property occupied by five or more people from two or more separate households who share at least one amenity (kitchen, bathroom or toilet). This is a national requirement under Part 2 of the Housing Act 2004, expanded in October 2018 — it covers all 23 Newham wards with no exceptions.

Additional HMO licensing is a local scheme covering properties occupied by three or four people from two or more separate households who share amenities. It runs from 1 June 2023 to 31 May 2028 across 21 of Newham's 23 wards. The two excluded wards are Royal Victoria and Stratford Olympic Park — if your HMO sits in either of those, additional licensing does not apply (though mandatory licensing still does if there are five or more occupants).

How Household Counting Works

The scheme you need depends on how many separate households live in the property. Under section 258 of the Housing Act 2004, a household means a single family unit — married or cohabiting couples (including same-sex couples), parents and children, siblings and other relatives. Everyone else counts as a separate household.

Three unrelated friends sharing a flat form three households — that triggers additional HMO licensing. Two couples sharing a house form two households with four people — also additional HMO licensing. Five unrelated sharers form five households — mandatory HMO licensing.

Students count fully toward the numbers. The only exception is university-managed halls of residence, which are exempt under Schedule 14 of the Housing Act.

The Fee Difference Is Significant

Additional HMO licences cost £1,250 total (£400 Part A, £850 Part B). Mandatory HMO licences start at £1,400 for properties with up to five lettings or units (£450 Part A, £950 Part B) and increase with property size — six to nine units costs £1,550, ten to fourteen costs £1,700, and larger properties scale further.

The same discounts apply as for selective licensing: £50 for accredited landlords and £50 for properties with an EPC of C or above. No discounts if Newham has already served a "Failure to Licence Warning Letter" before your application.

Minimum Room Sizes for HMOs

Licensed Additional and Mandatory HMOs must meet statutory minimum bedroom sizes under the 2018 regulations. A single occupant aged 10 or over needs at least 6.51 m². Two people sharing need 10.22 m². A child under 10 needs 4.64 m². Any room under 4.64 m² cannot legally be used as a bedroom at all. Floor area below a ceiling height of 1.5 metres is excluded from the calculation.

These measurements must be recorded on the floor plan you upload with your application. Getting them wrong is one of the most common reasons for application queries and delays.

Planning Permission Is a Separate Requirement

A property licence does not grant planning permission. Newham has a borough-wide Article 4 Direction (in force since 31 July 2013) that removes permitted development rights for changing a dwelling (C3) into a small HMO (C4, three to six occupants). You need full planning permission before converting to an HMO of three or more sharers — and Newham will not refund licence fees if planning permission is later refused.

Properties with seven or more occupants are classified as sui generis and need planning permission nationwide, regardless of any Article 4 Direction.

The Newham Landlord Licensing Guide walks through the complete decision tree — from counting households to choosing the right scheme, uploading floor plans with correct room dimensions, and navigating both the licensing and planning requirements.

See more England guides →