Southwark HMO Licence Application: Additional and Mandatory Schemes Explained

Two HMO Schemes Running Borough-Wide

Southwark operates two separate HMO licensing schemes that cover all 23 wards — there is no ward-by-ward check for HMOs the way there is for selective licensing. The split comes down to how many people live in the property and how many separate households they form.

Mandatory HMO licensing applies when a property is occupied by five or more people forming two or more separate households who share a kitchen, bathroom or toilet. This is a national scheme under Part 2 of the Housing Act 2004 — it runs permanently with no expiry date. The total fee is £1,653.50 for up to five letting rooms, plus £110 per additional room above five.

Additional HMO licensing applies when a property is occupied by three or four people forming two or more households who share amenities. Southwark's additional scheme also covers purpose-built flats in multiple occupation (within blocks of three or more flats) and qualifying Section 257 converted buildings (at least three storeys, with at least three self-contained flats under the same ownership or control). The scheme runs borough-wide from 1 March 2022 to 28 February 2027, with a total fee of £1,433.

The Occupancy Test That Determines Which Scheme

The key distinction is household count, not tenancy agreement count. Three friends sharing a flat on a single joint tenancy still form separate households under Section 254 of the Housing Act 2004 if they are not related or in a relationship. The single tenancy agreement does not override the statutory HMO classification.

Here is the hierarchy:

1. Five or more occupants, two or more households, sharing amenities → mandatory HMO licence
2. Three or four occupants, two or more households, sharing amenities → additional HMO licence
3. One household (single person, couple or family) → selective licence if in a designated ward, or no licence if in an exempt ward. Two unrelated joint tenants form two households under Section 258; with only two occupants they are below Southwark's three-person threshold for additional licensing, so a selective licence is required if the property is in a designated ward.

The storey-count test was abolished in October 2018. A ground-floor flat with five sharers from separate households needs a mandatory HMO licence just as much as a three-storey house does.

What the Application Involves

Both mandatory and additional HMO applications go through Southwark's online property licensing portal. The process is the same for both:

• Register a portal account with a verified email
• Enter the property address — the system identifies the applicable scheme
• Input room dimensions, occupant numbers and household compositions
• Complete the fit and proper person declaration
• Upload mandatory documents (EICR, gas safety certificate, EPC, fire risk assessment, fire alarm certification, floor plans, tenancy agreement)
• Pay the Part A fee
• Receive an application reference number

Processing takes three to six months on average. During that time, a complete application gives you a statutory defence against prosecution for operating unlicensed — but only if the application is genuinely complete (all documents uploaded, Part A paid).

After the Application

Southwark issues a Notice of Intention (draft licence) once the application passes initial review, followed by a 14-day consultation period. After that, the council sends a Part B fee invoice. The final licence is granted once Part B clears.

Licences are granted for up to five years, though the council may issue shorter one-year or three-year terms if there are compliance concerns, late applications or unresolved hazards.

If the property changes ownership, the licence does not transfer — the new owner must apply fresh.

For a complete walkthrough of every step, from checking which licence applies through to tracking your licence conditions, see the full Southwark licensing guide.

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