The Southwark Council HMO licensing system can seem complicated at first read, so we’ve put together a simple guide for any landlords who own properties in Rotherhithe, Canada Water, Bermondsey, Borough, London Bridge, and the surrounding areas.
Let’s start with a brief explanation of what an HMO is.
HMO stands for “House in Multiple Occupation”.
Your house or apartment is a house in multiple occupation (HMO) if both of the following apply:
A household is either one single person or a group of people forming one family.
The government specifies that the definition of family includes people who are in a relationship (not necessary legally married) or who are related, including aunts, uncles, grandparents, siblings, stepfamily, and so on.
Landlords often question the definition, so here is a good example to offer clarity: one couple plus one sibling living together are considered one family / one household, therefore exempt from licence.
HMO Licence. Guide For Landlords. Southwark Council
There are three types of licences in Southwark (at time of writing – November 2022):
Mandatory Licence: HMO occupied by 5 or more tenants forming 2 or more households.
Additional Licence: HMO occupied by 3 or 4 tenants forming 2 or more households.
Selective Licence: From 1 November 2023, this licence will also be required in the following wards: 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.
If your home falls into at least one of those categories then you must apply for a licence through the Southwark Council website. There are up to £30k fines for each licence conditions breach.
How much does a Southwark HMO licence cost?
At time of writing (November 2022) prices start from £900 for a selective licence, £1300 for an additional licence, and £1500 (plus £100 per bedroom above 5) for a mandatory licence.
The licence generally last for 5 years.
Are there specific requirements?
Yes, there are specific requirements – it is not sufficient just to pay in order to be granted a licence.
As part of the registration process the Council will ask you to upload the following documentation:
You will also need to comply with the current fire safety regulations.
The list above reflects just few of the many conditions (click here to dowload the Southwark Council HMO Licence Conditions).
Southwark Council has also its own HMO standards (Download Southwark Council HMO Standards by clicking here) all landlords will need to comply with. The Council is very strict with concerns over the size of each room and the number of tenants allowed to live in a house in multiple occupation.
For instance, not all double bedrooms are suitable for two people and bedrooms smaller than a certain number of square meters are not fit for living under Southwark Council standards.
Avoid a £30,000 fine.
It is crucial that all landlords plan for the HMO licencing process prior to renting out their HMO property to avoid sizeable fines (up to £30k for each licence conditions breach) or enter into legal disputes.
If you own an HMO property and are seeking more information about the licence system and its conditions, or you are not sure whether your home is an HMO / is located in one of the “additional licence” locations, please feel free to get in touch.
Here at Alex & Matteo, we always strive to be industry-leading, and are more than happy to assist you.
UPDATE
We have written another blog about the same topic which speak in more debt about the changes since November 2023. Please see the link below:
HMO Licensing Changes from November 2023: What You Need to Know