One of the biggest compliance headaches for landlords is licensing, which differs from borough to borough:
- Mandatory HMO licensing applies if you rent to five or more people from two or more households.
- Additional licensing: Some councils extend this to smaller HMOs. For example, Lewisham requires licensing for all HMOs, not just the large ones.
- Selective licensing: Certain areas require all landlords to hold a licence, regardless of property type. Southwark has selective licensing in parts of the borough, while Bromley currently does not.
Failing to secure the right licence can result in fines of up to £30,000 and tenants may be able to reclaim rent paid through a Rent Repayment Order.