If you’re thinking of renting out property in Bermondsey, Borough, London Bridge, or somewhere else in the London Borough of Southwark, you need to know about the council’s licensing schemes. Landlords with houses in multiple occupation (HMOs) in the borough may need apply to the council for a licence. Fail to do so and you could be liable for a fine of up to £30,000 and a criminal record. Your future as a landlord could also be at risk.
Whether or not you need to apply for a licence depends on factors including how many people live in the property and which council ward it falls into. A new licensing scheme also covers rental properties that do not need an HMO licence, so a 2-bedroom property for example, may not be exempt.
To help you understand the private rented property licensing rules, we answer key questions about HMO licensing in Southwark.
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An HMO is defined as a house or flat occupied by three or more people, from two or more households, who share facilities. Flats in multiple occupation in a purpose built block of flats that houses three or more flats also require an HMO licence. Check Section 257 HMO for a full definition of what are classed as HMOs.
By law, large HMOs, with five or more tenants sharing facilities, must be licensed by their local council. This is known as mandatory licensing, and the legislation applies to large HMOs across England.
The Housing Act 2004 gave local councils the right to introduce new selective landlord licences, which apply to privately rented properties within a certain geographic area.
Selective licensing has been introduced in Southwark, meaning that some smaller HMOs, with three or more tenants, may also need a licence. In Southwark selective licensing applies to properties in the Newington, Champion Hill, Faraday, St Giles, Goose Green, North Walworth, Nunhead & Queens Road, Old Kent Road, Peckham, Camberwell Green, Chaucer, Dulwich Hill, Dulwich Wood, London Bridge & West Bermondsey, Peckham Rye, Rotherhithe, Rye Lane, South Bermondsey and Surrey Docks council wards.
In March 2022 Southwark Council also introduced an additional licensing scheme for certain blocks of flats. The rules apply to some properties which have been converted into self-contained flats and where the conversion does not comply with the necessary building regulations. In Southwark additional licensing applies borough-wide.
If your property has five or more unrelated tenants sharing facilities, you will most likely need a licence. For smaller HMOs, in Southwark, visit the council’s website for full details. Some properties may be exempt from the rules so check if these conditions apply to you.
To qualify for an HMO landlord’s licence, your property needs to meet certain standards and conditions. This is to ensure it is a safe and decent home for your tenants. HMO landlords usually need to:
You should also not exceed the maximum occupancy calculations per room:
Check the full details as dimensions vary depending on the kitchen facilities provided, and whether they property is rented by a group who know each other.
You should apply for an HMO licence via the Southwark Council portal. Before you apply, you’ll need to have certain information about your property to hand, including room sizes and facilities, details about the property structure and safety equipment and floorplans. You will also need to join a landlord accreditation scheme, to demonstrate you are a responsible landlord. More details and links to accreditation schemes are given on the Southwark Council website.
These are the steps to follow and licence fees involved in getting a private rented property licence in Southwark.
Assemble floor plans, certificates, planning consent, property details, landlord accreditation, and licence holder’s contact details. Supply all the required information to avoid delays.
Apply online and pay the Part A fee. The cost of the HMO licence application fee is £969.20 for an additional licence, and starts at £1,102.50 for a mandatory licence.
Southwark Council may carry out an inspection to check for hazards, ensure the property is safe for tenants to live in, and confirm that the details in your application form are accurate.
You have 14 days after receiving a draft licence or refusal to make your case. Many landlords are successful, but rejections are commonly caused by failing to show that you’re a fit and proper person, or breaching landlord rules.
Pay the Part B fee when your licence is issued, starting at £472.50 for a mandatory licence, or £395.90 for an additional licence. Display it in a communal area, with issue copies of the terms to the tenants.
The council will visit the property to make sure you fulfil the criteria after you receive your full licence.
You should apply for a new property licence on the portal in the same was as for your original licence the fees fare the same.
Southwark licensing fees are paid in two instalments. Part A needs to be paid when you apply and Part B is payable when the licence is issued. Current fees are below but check the website for updates. for updates.
| Type of Licence | Part A Processing and determining the application | Part B Administration, management and enforcement of the licensing schemes | Total |
| Mandatory Licence | £1050 (+ £70 per bedroom above 5) | £450 (+ £30 per bedroom above 5) | £1500 (+ £100 per bedroom above 5) |
| Additional Licence up to four bedrooms | £923 | £377 | £1,300 |
| Selective Licensing Designations 1 & 2 | £630 | £270 | £900 |
Usually, licences last for five years, however, this may be reduced to three, if the council finds evidence of poor management or other issues.
Landlords who don’t follow the law on HMO licensing risk prosecution, a criminal record, and an unlimited fine. Alternatively, the council can issue a civil penalty of up to £30,000.
You would also find it difficult to get a licence in future as you would struggle to pass the necessary ‘fit and proper person’ test.
If you are renting your HMO property to seven or more occupiers, you will require planning permission to convert it from C3 (house) to C4 (HMO) use. You can apply via Southwark.gov.uk. Expect to follow guidelines for converting a house to an HMO by demonstrating that your conversion is in keeping with the property’s character, won’t have an adverse impact on the neighbourhood, and that room sizes and conditions will be appropriate.
According to data from Southwark Council, over 3,600 properties were licensed with further applications being processed. In 2024, a further 1,087 HMO licences were granted according to data shared in Landlord Today.
A second selective licensing scheme was introduced in Southwark in November 2023. There are also some proposed new changes for selective licensing in Lambeth, so that all types of privately rented homes with the highest level of properties in poor condition will require licences.
If you don’t agree with the council’s decision, you can appeal to the independent First-tier Tribunal (Property Chamber). You must do this within 28 days of the decision.
If you are a new landlord getting to grips with mandatory, additional and selective licences, speak to us and we can help you understand how to become a landlord who operates successfully. We are a letting agent based in London SE1 and will be pleased to tell you more about HMO licensing in Southwark or any other issues you have. Call us today to discuss your property and how we might help.
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