What is an HMO or Selective licence:
An HMO (House in Multiple Occupation) in England is a property rented out by three or more tenants who are not all from the same household, meaning they are not part of the same family or couple. These tenants share common areas such as the kitchen, bathroom, or toilet. Definition of a household is:
- A single person living alone
- Members of the same family living together (e.g., siblings, parent-child)
- Couples living together in a spousal or partner relationship
https://nationalhmonetwork.com/what-is-an-hmo/
https://nationalhmonetwork.com/what-is-an-hmo/what-is-a-household/
Mandatory HMO Licensing:
- All HMOs with 5 or more occupants forming 2 or more households need a license.
Additional HMO & Selective Licensing – All Boroughs can decide to implement independently:
- Additional HMO Licensing: Extends the licensing requirement to smaller HMOs (e.g., 3 or 4 tenants from more than one household), which were previously exempt under Mandatory HMO rules.
- Selective Licensing (properties that fall outside of the definition of an HMO): May require all private rental properties, even single-family lets or small shared properties, to be licensed if they are within designated areas of the borough, regardless of the number of occupants.
Do I need a Licence – Depends on the Borough in which your property is located
Each Borough has the powers to apply licensing rules independently except for Mandatory licensing which applies nationwide.
Current rules (subject to change) for the Boroughs where we operate are:
Lambeth
Borough wide:
- Properties which fall under the 'Mandatory' HMO definition (five people or more not living together as a single household are sharing facilities)
- Properties which fall under the 'Additional' HMO definition (three people or more not living together as a single household are sharing facilities)
- All privately rented properties not covered by mandatory or additional licensing schemes within the borough of Lambeth (excluding Vauxhall and Waterloo & Southbank wards) require a ‘Selective Licence’.
Lambeth Mandatory and Additional Licence HMO’s
Southwark
Borough wide:
- Properties which fall under the 'Mandatory' HMO definition (five people or more not living together as a single household are sharing facilities)
Specific locations according to Southwark designation:
- Properties which fall under the 'Additional' HMO definition (three people or more not living together as a single household who are sharing facilities) Southwark Additional Licence Designated area
- All privately rented properties not covered by mandatory or additional licensing located in specific licensing delegations require a ‘Selective Licence’. Interactive map
Wandsworth
Borough wide:
- Properties which fall under the 'Mandatory' HMO definition (five people or more not living together as a single household are sharing facilities)
- Properties which fall under the 'Additional' HMO definition (three people or more not living together as a single household are sharing facilities)
Specific locations according to Wandsworth designation:
- All privately rented properties not covered by mandatory or additional licensing located in specific licensing delegations require a ‘Selective Licence’. Interactive map
HMO Requirements:
Documents and certificates that will be required:
When an application is ready to be sent, you will be required to have the following documents, for Mandatory and Additional Licensing, this will vary for Selective Licensing and some documents may not be requested.
- Gas safety certificate
- Automatic fire detection certificate
- Accreditation membership
- Emergency lighting certificate
- Floor plan
- Tenancy/Management agreement(s)
- PAT testing
- Electrical installation condition report (or equivalent)
- Fire risk assessment
- Land registry title (dated within 28 days of application)
- Property insurance
- Asbestos survey
How much does it cost:
The cost will depend on which of the three licences you will be applying for and from which Borough.
For more information, please contact us on 02082998111 opt 4.
Our Services.
We will determine whether your house or flat is an HMO (mandatory or additional) or falls within a Selective Licence delegated area. Once we have determined the requirements, we will carry out the following:
- Apply for a licence on your behalf.
- Arrange first and second payment of fees to the council.
- Arrange a fire risk assessment.
- Arrange a portable appliance test certificate.
- Arrange a fire certificate (smoke alarm certificate of inspection).
- Arrange a gas safety certificate.
- Arrange for title deed as proof of ownership.
- Arrange an electrical installation certificate up to date.
- Arrange an EPC certificate.
- Arrange floor plans along with an evacuation floor plan.
- Liaise with the council licensing department.
Once the application has been approved, we will then proceed with the next steps:
- Review the licence requirements.
- Liaise with the council residential licensing department in the event of any issues raised which could affect the property or licence requirements.
- Arrange for quotes for required remedial works.
- Get approval on the work quotes from the Landlord.
- Inspect and sign off remedial works upon completion.
- Arrange to renew the licence every five years.
- Update Lambeth of any changes as per the licence requirements.
- Liaise with the council on all matters.
- Arrange to meet or secure access for inspections required by the council.
Once all the HMO Works have been completed, our additional services include:
- HMO Management of the property.
- Arrange annual compliance certificates, renewals, checks and inspections.
- Send ‘Duties of the Occupiers’ agreement to the tenants to sign.
For all letting and management services we offer please visit: https://www.keatingestates.com/landlords
Landlords can benefit from a 20% Discount on HMO fees if they are an Accredited Landlord.
Preparing for the Renters Rights Act 2026
What to do before the Act comes into force
The Renters’ Rights Act (RRA) is now law but it does not yet apply to private rented tenancies. It will start to come into force from 1 May 2026, and landlords should start preparing now for the changes it brings.
The new Renters’ Rights Act introduces the most significant changes to the private rented sector in nearly four decades. It establishes a host of reforms such as:
• A new standard tenancy for private renting • A Decent Homes Standard and new rules on responding to hazards • Changes to advertising and letting practices • Limits on when and how much rent can be taken in advance • The removal of Section 21 notices for possession • Changes to Section 8 grounds for possession • Changes to rent increases • A new private rented sector database and Ombudsman that landlords must sign up to • New offences and civil penalties for landlords who don't comply with these rules
When will the Renters' Rights Act apply to my tenancies? The Renters' Rights Act will come into force in stages, with the first set of reforms applying from 1 May 2026. These reforms include:
• Abolishing fixed term assured shorthold tenancies and replacing them with assured periodic tenancies • Allowing tenants to serve notice to end the tenancy agreement at any time by serving two months notice • Abolishing Section 21 notices and updating Section 8 possession grounds • Banning rental bidding wars and changing advertising practices • Preventing discrimination against tenants on benefits or with children • Limiting the ways you can increase rent or take rent in advance • Significant new powers for local authorities to enforce the renal legislation.
Later in 2026, landlords will begin registering for a new private landlord ombudsman and a private rented sector database. At some point in the future the Government will introduce new rules around property standards. This will follow on after consultation.
What can you do now to prepare?
There are a few things you can do to get ahead of the curve and make sure you’re ready for the changes to come into effect:
- Review your portfolio
- Inspect your properties and address any potential hazards
- Update your processes around tenant referencing, advertising, and logging complaints/issues
- If you use an agent to let or manage your property, check that they are ready for the changes
Reviewing your portfolio
With demand high and rents continuing to rise, the reasons for being a landlord remain strong in most areas of the country. Most tenants are happy with their landlord’s services, intend to stay long-term, and pay their rent regularly, so problems remain unlikely. However, the Act will increase the costs and financial risk to landlords in several ways, including:
• A higher risk of void periods, particularly in houses in multiple occupation (HMOs) and for student tenancies • Changes to possession grounds and the removal of Section 21 will increase delays in seeking possession and the difficulty of successfully gaining possession • Delays in implementing regular rent increases • Higher civil penalties as well as new offences that could catch out unaware landlords • New fees to cover the set-up and running costs and the expected costs of enforcing the rules • Rent cannot be paid in advance before signing the tenancy agreement, potentially invalidating existing insurance products
With that in mind, you should be reviewing your portfolio now to answer questions like:
If you need help in navigating the Renters Right Act or need help Letting your property, be it 1,2,3,4 or 5 bedroom property, and have a HMO license or need one, then please get in touch on 0208299811 opt 4.