One of the UK’s largest and most expensive HMO licensing schemes has been proposed in London.

London Borough of Lambeth councillor Maria Kay (pictured) has endorsed a proposed borough-wide Additional Licensing scheme that will see all HMOs within its boundaries licenced in addition to those already covered by its Mandatory scheme for larger HMOs. If approved it will start on November 30th this year.

The decision will now go to the council’s full Cabinet for a vote and follows a three-month consultation that finished at the end of March.

The scheme, if approved, will see up to 5,000 privately rented homes within its borders brought into licensing from Streatham in the south to the Thames in the north. Only 590 HMOs are currently licenced.

This means 10% of all private rented stock in Lambeth is an HMO, while 35% of all homes within the borough are rented privately – this compares to 20% nationally.

Licensing increase

Consequently, hundreds of estate agents and thousands of landlords within the South London borough will now face having to licence their properties with three or more unconnected people living in them sharing common facilities such as a bathroom and kitchen and making up more than two households.

Currently, only such properties with five or more people must be licenced.

The new scheme is unusual in that, rather than charging per property, agents and landlords will have to pay £520 per habitable room to licence a house or flat for five years, although discounts are available for landlords who join the council’s accreditation scheme.

To back up its proposal, Lambeth says anti-social behaviour rates per 1000 properties are significantly higher in the HMO sector when compared to the private rented sector as a whole.

Councillor Kay also says the scheme will be self-financing, costing and raising – from landlords and agents – approximately £10 million during its five-years of operation.

Read the consultation document.

Read more about HMO licensing.