New landlord licensing scheme being launched in Lambeth and new HMO planning restrictions coming soon

Lambeth Council have introduced a new selective licensing scheme that comes into force on 2 September 2024.

The new selective licensing scheme covering the four council wards of Knights Hill, Streatham Common & Vale, Streatham Hill East and Streatham St Leonards will remain in force for 5 years.

The scheme extends licensing to all private rented homes within the designated area that are occupied by a single household or two unrelated sharers. HMOs already need licensing under the council’s mandatory HMO and additional licensing schemes.

Landlords and agents who fail to apply for a licence risk a criminal prosecution or a civil financial penalty of up to £30,000 per property. Other sanctions also apply.

Lambeth landlords facing highest selective licensing fee in London

Lambeth Council are charging a standard licence application fee of £923 per property. This will be the highest selective licence application fee charged by any London Borough and is 21% above the London average, according to the latest research by London Property Licensing.

Fee discounts are available for accredited landlords and for properties with an EPC rating of A, B or C.

Council website causing confusion

Landlords visiting the selective licensing page on the council’s website are facing understandable confusion about the remit of the scheme.

Whilst the webpage explains a selective licence is required for any landlord renting a property to a single household or two unrelated sharers from Monday 2 September, it fails to mention what area the scheme covers. That information can only be found be visiting a different consultation webpage. It is hoped the council will update their selective licensing webpage soon.

London Property Licensing is already preparing licence applications for clients in Lambeth and anyone needing assistance can find more information about our licence application handling service here.

HMO Article 4 Direction consultation underway

Lambeth Council is also consulting on plans to implement HMO planning restrictions from 12 August to 7 October (read here). The council has made a non-immediate HMO Article 4 Direction covering the council wards of Streatham Common and Vale and Streatham St Leonard.

Subject to the outcome of the consultation, the new HMO planning restrictions are expected to be implemented in August 2025.

Our free guide containing more information about property licensing and HMO planning restrictions in the London Borough of Lambeth is available here.