Hackney Council has announced the introduction of new property licensing schemes that will affect a large proportion of privately rented homes across the borough. The changes form part of the council’s wider strategy to improve housing standards and strengthen oversight of the private rented sector.
For landlords with properties in Hackney, it is important to understand how these new rules work and whether your property will require a licence.
What are the new Hackney licensing schemes?
Hackney is introducing both Selective Licensing and Additional Licensing schemes. These operate alongside the existing mandatory HMO licensing rules already in place across England.
Selective Licensing applies to single household rental properties in designated areas, while Additional Licensing extends licensing requirements to smaller Houses in Multiple Occupation (HMOs) that fall outside the national mandatory scheme.
Together, these schemes mean a significantly larger number of privately rented properties in Hackney will require a licence from the council.
Why the council is introducing licensing
Adam Wetenhall, Asset Manager, said:
“Licensing schemes like this are becoming increasingly common across London. While they do introduce additional responsibilities for landlords, they are ultimately designed to raise standards and improve conditions across the private rented sector. The key thing for landlords is to understand early whether their property falls within the scheme and what steps need to be taken to remain compliant.”
Local authorities introduce property licensing schemes to improve conditions in the private rented sector and to ensure landlords meet their legal responsibilities.
Licensing allows the council to check that rental properties are safe, well managed, and meet required housing standards. It also provides enforcement powers where properties fail to meet these standards.
Hackney Council has stated that the schemes aim to:
• Improve housing conditions across the borough
• Reduce issues such as overcrowding and poor property management
• Support tenants living in privately rented accommodation
• Provide stronger enforcement tools against rogue landlords
Which properties will need a licence?
Under the new rules, many privately rented homes will require a licence, even if they are not HMOs.
Properties that may require licensing include:
• Single household rental homes in areas covered by Selective Licensing
• Smaller HMOs that fall under the new Additional Licensing scheme
• Larger HMOs, which continue to require mandatory licensing under national legislation
Because these schemes run alongside one another, it is important for landlords to check which category their property falls into.
What happens if a property is not licensed?
Letting a property that requires a licence without obtaining one can lead to serious consequences.
Councils have the power to issue civil penalties of up to £30,000 for breaches of housing legislation. Landlords may also face enforcement action and restrictions on their ability to let the property.
In some circumstances, tenants may also be able to apply for rent repayment orders if a property has been rented without the appropriate licence in place.
What about landlords who live overseas?
An important point for overseas landlords is that councils typically require a UK-based person or organisation to manage licensing responsibilities.
In practice, this means landlords who live abroad must appoint a managing agent or representative who can handle the licensing process and deal with the council where necessary.
Where to find more information
Hackney Council has published detailed guidance explaining the new schemes and how licensing applications work.
Landlords can read the full information on the council’s website here:
https://hackney.gov.uk/property-licensing
Understanding the requirements early will help landlords ensure their properties remain compliant as the new licensing schemes come into effect.
