When it comes to privately renting property in the UK, one of the trickiest but most essential compliance areas is licences. Landlords might find themselves needing one or more licences depending on the location and type of property. And a recent high-profile case has brought home how seriously the rules are taken — even for the Chancellor of the Exchequer.
Common licences landlords should know about
Mandatory HMO licence – Required if the property is a House in Multiple Occupation (HMO) above a certain size, typically with five or more unrelated tenants sharing facilities. This ensures shared homes meet safety, fire, and amenity standards.
Additional HMO licensing – Many local councils extend HMO licensing to smaller HMOs (for example, three or four tenants) through their own additional schemes. Councils can require extra properties to be licensed beyond the national “mandatory” threshold.
Selective licensing – Some local authorities designate entire areas where every privately rented home must be licensed. These schemes aim to help councils maintain standards, tackle anti-social behaviour, and protect tenants.
Mandatory condition or enforcement notices – Although not a licence in the same sense, councils can issue improvement or prohibition notices which must be complied with if the property fails to meet basic housing standards. Non-compliance can lead to enforcement action or prosecution.
Each council has the power to draw up its own selective or additional licensing zones, so what’s required in one borough may not apply in another.
It’s also important to note that not having a required licence is a criminal offence. Local authorities can impose civil penalties of up to £30,000 and may seek Rent Repayment Orders which allow tenants or authorities to reclaim rent paid during periods when a property was unlicensed.
The Chancellor’s licensing oversight: lessons for all landlords
This week’s news made headlines across the housing sector when Chancellor Rachel Reeves revealed she had let out her Southwark property without the required selective licence, in an area where such licensing is in force.
Reeves said she was unaware of the requirement and, once it was brought to her attention, promptly applied for the licence. Southwark Council requires private landlords in certain areas to hold a selective licence before letting out a property. The case drew scrutiny partly because she had previously expressed support for licensing schemes as a way of improving rental standards.
Critics have pointed out that ignorance of the law is no defence, and councils increasingly treat licensing failures as strict liability offences.
At James Gorey Estate Agents, we proactively help our landlords stay compliant with all local licensing and regulatory requirements. If you’re unsure whether your property needs a licence or want to double-check your compliance, our experienced lettings team can help guide you through the process.