Waltham Forest Section 257 HMO: Licensing Rules for Converted Flats

What Is a Section 257 HMO?

Section 257 of the Housing Act 2004 creates a special category of HMO for converted blocks of flats. A building qualifies as a Section 257 HMO when two conditions are met:

1. The conversion into self-contained flats did not comply with the Building Regulations 1991 (or whichever standard applied at the time of conversion).
2. Less than two-thirds of the individual flats are owner-occupied.

Victorian and Edwardian terraced houses split into flats — common across Waltham Forest's E17, E10, E11 and E4 postcodes — are the typical Section 257 buildings. If the conversion predates modern building regulations and most of the flats are rented, the whole block is classified as an HMO even though every flat is self-contained.

How Waltham Forest Treats Section 257 Blocks

Waltham Forest explicitly excludes Section 257 converted blocks as a whole building from its additional HMO licensing scheme. The council does not require a single building-wide licence for the block itself.

Instead, each individual flat within the block is licensed according to its own tenancy structure:

• Single let or couple (one household): Selective licence, if the property is in one of the 20 designated wards (not Hatch Lane & Highams Park North or Endlebury).
• Two unrelated sharers: Selective licence in the 20 designated wards.
• Three or four unrelated sharers forming two or more households: Additional HMO licence (borough-wide).
• Five or more unrelated sharers forming two or more households: Mandatory HMO licence (borough-wide).

The building's Section 257 status does not change the licensing requirement for any individual flat — it only means the block itself does not need a separate building-wide licence under Waltham Forest's additional scheme.

Why This Matters for Landlords

Confusion usually hits landlords who own one flat inside a converted block. They know the building is technically an HMO and assume they need an HMO licence for their self-contained unit. In most cases, a flat let to a single person, a couple or a family needs a selective licence — not an HMO licence. The fee difference is significant: £895 for a selective licence versus £1,200 for an additional HMO licence.

The reverse mistake also happens. A landlord with a flat shared by three unrelated tenants may assume a selective licence covers it because the flat is self-contained. It does not. Three unrelated people from separate households trigger the additional HMO licensing requirement regardless of the flat's layout.

Management Regulations Still Apply

Even though Waltham Forest does not licence the Section 257 block as a whole, the Management of Houses in Multiple Occupation (England) Regulations 2006 and the 2007 Additional Provisions Regulations still apply to the common parts. Whoever controls the common areas — typically the freeholder or a management company — must maintain fire escapes, hallways, lighting, structural fixtures and waste disposal for the building.

If you own a flat in a converted block and are not sure which licence applies, our Waltham Forest licensing guide walks through the decision framework step by step — including the occupancy thresholds, ward boundaries and fee splits for each scheme.

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