What is property licensing?

    Property licensing is a legal requirement for landlords or managing agents to obtain a licence that confirms a rented property is safe, suitable for occupation, and managed to an acceptable standard.

    What types of licensing schemes exist?

    • Mandatory HMO Licensing: Applies to properties occupied by five or more people forming two or more households, sharing facilities like kitchens or bathrooms.
    • Additional Licensing: Covers smaller HMOs (three or four unrelated people) sharing facilities like kitchens or bathrooms. 
    • Selective Licensing: Applies to all privately rented properties in designated areas, regardless of the number of occupants. In Harrow there are currently schemes in Edgware and Wealdstone South.

    Why is Harrow introducing or renewing licensing schemes?

    To:

    • Improve housing standards and management.
    • Protect tenants from rogue landlords.
    • Address issues caused by poorly managed rental properties.

    What are the benefits of licensing?

    For Tenants:

    • Safer, better-managed homes.
    • Clear standards landlords must meet.
    • Reduced risk of homelessness.

    For Landlords:

    • Support and training for compliance.
    • Reduced void periods.
    • Recognition for responsible landlords.
    • Tools to manage anti-social behaviour.

    What must a landlord do in relation to HMOs?

    The Housing Act 2004 requires landlords to:

    • Obtain an HMO licence to rent out the property
    • Ensure they meet the minimum standards for tenant safety
    • Ensure they meet the minimum standards for property management 
    • Demonstrate as Landlords that they are ‘fit and proper’ persons

    What must a landlord do in relation to rental properties in a selective licensing area?

    Similar to HMO licensing, the Housing Act 2004 requires landlords to obtain a licence and to ensure the properties meets standards for property management and tenant safety.  Again, the landlord must be a ‘fit and proper’ person.

     

    How long does a licence last?

    Licences can be granted for up to five years, but shorter durations may apply in certain cases.

    What are the fees?

    Fees are typically split into two parts for HMOs. An administration fee applies for Selective Licensing Schemes:

    • Administration: Paid at submission of application.
    • Inspection: To process and grant the licence.

    HMO Licence Fees

    Selective Licensing Fees

    What documents are required?

    To apply for a HMO licence you will need: 

    • a method of payment for the administration fee of £1,318.00
    • Floor plan of the property
    • Gas safety certificate (if applicable)
    • Electrical safety certificate
    • Fire risk assessment
    • Tenancy agreement(s) (for every tenancy)
    • Anti-social behaviour action plan.

    To apply for a Selective licence you will need:

    • A method of payment for the administration fee of £652
    • Floor plan of the property
    • Gas safety certificate (if applicable)
    • Electrical safety certificate
    • EPC (Energy Performance certificate)
    • Tenancy agreement
    • Anti-social behaviour plan.

    Will my property be inspected?

    • HMOs: Most will be inspected during the licence period.
    • Selective Licensing: Inspections are risk-based but expected for many properties.

    What happens if I don’t get a licence?

    Penalties for not having a HMO licence

    Failing to have a HMO licence is a criminal offence and subject to an unlimited fine. Listed below are details of possible breaches of HMOs:

    • it is a criminal offence to obstruct the local authority in carrying out their functions. This is under Parts 1-4 and sections 239 and 240. A penalty on summary conviction is currently up to £2,500.
    • it is an offence if the person in control of the property fails to apply for a licence for a licensable property. An unlimited fine may be imposed.
    • it is an offence to allow a property to be occupied by more people than are permitted under the licence. An unlimited fine may be imposed.
    • overcrowding carries an unlimited penalty. Landlords who breach other licence conditions can be fined £5,000 per offence.

    Penalties for not having a selective licence

    If you don't have a licence it is a criminal offence which is subject to an unlimited fine upon conviction.

    Listed below are details of possible breaches:

    • It is an offence if the landlord or person in control of the property fails to apply for a licence. They are liable on summary conviction to an unlimited fine.
    • A licensee who breaches its conditions is liable on conviction to a fine not exceeding level 5.
    • It is a criminal offence to obstruct the local authority in carrying out their functions. This is under Parts 1-4 and sections 239 and 240. They will be liable upon conviction to a fine not exceeding level 4 on the standard scale.
    • A landlord commits an offence if there is overcrowding. They are liable, on conviction, to a fine of at most level 2 on the standard scale. There may also be a fine not exceeding one-tenth of the amount corresponding to that level. This is in respect of every day after the day they are convicted on which the offence continues.
    • Tenants can make an application to a Residential Property Tribunal for a Rent Repayment Order. This is if the landlord has been convicted of the offence of operating a licensed property without a licence.

    Can a licence be transferred?

    No. If ownership changes, the new owner must apply for a new licence.

    Are any properties exempt?

    Yes. Exemptions include:

    • Owner-occupied homes with up to two lodgers.
    • Buildings managed by public bodies or registered providers.
    • Student halls managed by educational institutions.
    • Certain co-operative housing.

    What is the HMO waste scheme and what does it require?

    Licence holders/landlords must give tenants written information of bin collection days and display this in their property including labelling them for general, recycling and food waste bins. Tenants must be told to place all waste inside bins, with instructions for excess waste. 

    Tenancy agreements must include waste management rules, and regular property checks with written records are required.