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Jamie Hutton

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If you're a landlord in Tower Hamlets, London, there's some crucial new legislation you need to be aware of regarding additional licensing.

Effective from the 1st April, 2024, the entire Borough of Tower Hamlets was designated as an area for additional licensing. This designation is set to remain in force until March 31, 2029.

What does it mean for Landlords?

One of the most common questions we've encountered from landlords on this topic, is: "Does this affect me?"

Under the previous rules, only Houses in Multiple Occupation (HMOs) with five or more people from different households, sharing facilities like a bathroom or kitchen, required a license. However, the definition of a licensable HMO has now changed.

Under the new regulations, if you're renting out a property where:

• There are three or more people living as two or more households
• They share facilities like a bathroom or kitchen
• At least one tenant pays rent

...you'll need to obtain a license.

Exemptions

Some properties are exempt from the licensing requirement. These include properties that are:

• controlled or managed by a Local Housing Authority
• controlled or managed by registered social landlords and housing providers.
• controlled and managed by police
• controlled and managed by fire brigade
• controlled and managed by Health Service Body
• regulated by other enactments
• occupied by religious communities (except section 257 HMOs)
• occupied by two persons who form two households

Click Here for More Information

Staying Informed

Operating an unlicensed property that should be licensed can result in severe consequences, including a criminal conviction and a financial penalty of up to £30,000.

Non-compliance fines have surged in Tower Hamlets, with over £1.2 million in financial penalties and rent repayment orders linked to unlicensed properties since the launch of its licensing schemes.

To avoid repercussions, it's crucial for landlords to stay informed about these changes in legislation, review the requirements carefully and take the necessary steps. Alternatively, you could work with a managing agent like Huttons & Partners, who can do the background work for you, ensuring your compliance.

Are you a landlord in the Tower Hamlets borough?

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Pease reach out and we can walk you through the process.

Jamie

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