If you are an existing landlord or are considering buying property in Southwark, it is essential that you understand and meet your licensing requirements. Your property may fall under the criteria for Southwark’s selective licensing scheme, a mandatory HMO licence or additional licence.
Financial penalties for unlicensed rental properties increased from 1 May 2026 and the maximum rent repayment order has doubled.
If you are a landlord in London Bridge, Bermondsey or the surrounding areas, this guide to the Southwark selective licensing scheme can help ensure that you follow the correct actions and don’t fall into legal trouble.
It’s coming soon and you need to prepare your property business. Get ahead of the curve with our FREE guide so you stay compliant & avoid fines.
A selective licence – and the selective landlord licence schemes – aim to tackle renters’ persistent problems with their accommodation, such as untended repairs, damp and mould, which the council wants to see eliminated.
Southwark’s selective licensing scheme is also designed to help private tenants with problems who struggle to contact or get a response from their landlords. It also challenges the problems associated with the cost of living for private renters, such as fuel poverty.
There are three types of landlord licences in Southwark:
Mandatory HMO licensing – This is a borough-wide licensing requirement for rented properties with 5 or more occupants from 2 or more separate households.
Additional licensing – There is also a borough-wide additional licensing scheme, which applies to rented properties like flats within a purpose-built block and smaller houses in multiple occupation. The scheme has been active since March 2022 and will run until February 2027.
You can read more about the Southwark HMO licence rules here in our article.
Selective licensing – Southwark Council has a selective licensing scheme for designated areas. The aim of this scheme is to improve housing conditions and reduce crime/anti-social behaviour in the area.
Southwark introduced a first designation phase on 1 March 2022 covering 6,000 properties and running for five years:
On 1 November 2023, further wards were added under a second designation phase to bring the total number of wards up to 19:
Ward boundaries can be confusing, so check if you’re unsure whether you require this type of licence.
| Licence type | Properties covered | Area | Scheme start | Scheme end |
|---|---|---|---|---|
| Mandatory HMO licence | HMOs with 5+ people from 2+ households sharing facilities | Borough-wide | April 2006 | No fixed end date |
| Additional HMO licence | Smaller HMOs not subject to mandatory licensing, generally 3–4 people from 2+ households, plus certain other HMOs | Borough-wide | 1 March 2022 | 28 February 2027 |
| Selective licensing – Phase 1 | Privately rented properties not requiring an HMO licence in designated areas | 5 wards – Champion Hill, Newington, Faraday, Goose Green and St Giles | 1 March 2022 | 28 February 2027 |
| Selective licensing – Phase 2 | Privately rented properties not requiring an HMO licence in designated areas | 14 further wards | 1 November 2023 | 31 October 2028 |
The Renters’ Rights Act 2025 sits alongside the local licensing schemes and includes further responsibilities for landlords. The new requirements include registering on the forthcoming Private Rented Sector Database and membership of the landlord ombudsman scheme that is set to be rolled out.
If you rent out property in London Bridge or Bermondsey, you need to know about how to get a selective licence in Southwark, who it applies to and how much it costs.
Selective licensing was already in place for Champion Hill, Newington, Faraday, St Giles or Goose Green. From November 2023, 14 additional wards require a selective licence:
It applies to most private residential properties, whether you rent to a single family or to tenants who rent together but aren’t related. Though you don’t need one if you already operate under one of the alternative licensing schemes. Read on to find out more about the exemptions.
The selective landlord licences Southwark council issue last for 5 years. The selective licensing for designation 2 runs until 2028 and any landlord taking on property now will need to check whether their property sits within the designated areas and apply for a licence if it does.
If your property falls foul of the standards, you will only be issued with a 1- or 3-year licence. Unfortunately, you can’t claim a refund if you stop renting out the property before it expires.
Want to be a more informed landlord? Licensing rules sit alongside wider reforms in the Renters’ Rights Act 2026 and ongoing duties like checking your tenant’s right to rent.
The selective Southwark landlord licences cost £945, paid in two instalments:
Discounts are available for Gold Standard Charter landlords, who can benefit from a 50% discount on the Part B charge. If you are part of Southwark Council’s Finders’ Fee Scheme as well, this fee will be waived, and you will only pay for Part A.
You can apply via the Southwark Council licensing application portal, by submitting details of the property, along with the name, address and date of birth of the prospective licence holder.
You will also need to provide details about the structure of the property and safety equipment. A card payment will be required for the application fees.
The following documents will be required:
There are some exemptions where properties do not require a selective licence, these include:
There are also some situations where temporary exemption applies. For example, if the owner is planning to live in the property and is going to legally evict the tenants.
To apply for a temporary exemption notice, an application can be submitted through the Southwark licensing portal.
Landlords and prospective buyers can use Southwark Council’s public licence register to check whether a property has a licence by entering the postcode into the search field.
Landlords with unlicensed rented properties can face financial penalties. Civil penalties for landlords with unlicensed properties increased to £40,000 from £30,000 starting from 1 May 2026.
Not having the correct licence can also result in enforcement action. For example, the council can enforce a rent repayment order, and the maximum limit doubled from 1 year to 2 years of rent payments from 1 May 2026.
Landlords will also face difficulties enforcing possession claims without a valid licence.
If you’re letting an ex-council flat in a licensed area, make sure smoke alarms and other safety standards are fully up to date.
These are some of the questions we have been asked about selective property licensing in Southwark:
You need a selective licence if you rent out a residential property to one household or two unrelated tenants, unless you already have a licence under an alternative scheme.
In Southwark, landlords will have to pay £630 for Part A of the application, and £270 for Part B, which covers ongoing enforcement and administration.
In Southwark, landlords will have to pay £630 for Part A of the application, and £270 for Part B, which covers ongoing enforcement and administration.
If you rent out your property without a licence, the council can issue a civil penalty of £30,000, or prosecution. At worst, penalties could include an unlimited fine, court costs and a criminal record – creating a history that makes it hard to obtain a licence in future.
Yes, you need a licence for each property you rent out.
We hope that we’ve answered your questions in our Southwark selective licensing guide for landlords in the local area. However, if you have any questions or concerns about how licensing affects your rented property in areas including Surrey Quays and Waterloo, contact Garrett Whitelock. We’ll be happy to help.
We’re here to help with any property-related queries you may have
Becoming a landlord can be very profitable, but you must pay tax on rental income. To avoid penalties, you must understand your tax oblig...
What are a London landlord’s repair obligations in 2026? Landlords have long had obligations to make repairs under the Landlord and Tenan...
In London areas like SE1, warehouse conversions have become highly in-demand rental properties. High-earning professionals are attracted ...
Lee Whitelock
Director
Being a landlord in London can be confusing. How do you make sure you are compliant?