London Borough of Islington

If you need help understanding the property licensing rules in Islington you have come to the right place! We are experts in housing regulation and have produced this free guide to help you understand the council’s property licensing schemes.

If you find that you need a licence for your rented property our support doesn’t end there. Our Landlord Suppliers Directory (view here) lists companies that offer a licence application handling service. You can also find companies offering a wide range of other goods and services to help you manage your property portfolio and achieve compliance.

Licensing Requirements

Do I need a licence to rent out my property?

There are currently three licensing schemes operating in Islington and the latest scheme started on 20 May 2024. We will help you choose the right licence for your property:

1. Mandatory HMO licence

You need a mandatory HMO licence if your property meets the standard test, self-contained flat test or converted building test HMO definition in section 254 of the Housing Act 2004 and is occupied by five or more people.

But what are these tests and what does this mean in practice? It means you need a licence for any house or flat that is occupied by five or more people who are not all related and live in the property as their main home. For example, it includes:

Shared houses and flats occupied by students and young professionals;
Properties converted into bedsits with some shared facilities; and
Properties converted into a mixture of self-contained and non self-contained accommodation.

Prior to 1 October 2018, the mandatory HMO licensing scheme only applied to properties that were three or more storeys in height, but that restriction has now been lifted.

The government have decided to exclude purpose built self-contained flats within a block comprising three or more self-contained flats from the mandatory HMO licensing scheme. While this will be good news for some landlords, it does make the licensing scheme far more complicated.

To find out more, you can read our free guide to mandatory HMO licensing (here).

2. Additional licence

An additional licensing scheme started on 1 February 2021 and applies borough wide. You will need an additional licence if your property is let as a House in Multiple Occupation that does not fall within the remit of the mandatory HMO licensing scheme.

The House in Multiple Occupation definition is not straightforward and you will need to study it carefully or seek advice. For example, Islington Council have included ‘section 257 HMOs’ within the additional licensing scheme. These are properties that:

have been converted into self-contained flats; and
less than two thirds of the flats are owner occupied; and
the conversion did not comply with the relevant Building Regulations in force at that time and still does not comply.

The council have simplified matters by restricting licensing of section 257 HMOs to situations where all of the flats are privately rented and under one single freehold ownership.

You can view a copy of the public notice in the ‘At a Glance’ box on the top right of this page.

To find out more, you can read our free guide to additional licensing (here).

3. Selective licence

A new selective licensing scheme started on 20 May 2024 and extends licensing to all private rented properties within the Finsbury Park, Tollington and Hillrise wards. We understand the previous selective licensing scheme which covered just the Finsbury Park ward has been revoked.

Within this area, you need a selective licence if your property (house or flat) is let out to a single household or two unrelated people.

To find out which ward you are in, you can use the postcode checker service on the council’s website.

You can view a copy of the public notice in the ‘At a Glance’ box on the top right of this page.

To find out more, you can read our free guide to selective licensing (here).

How much does a licence cost?

The cost varies according to the type of licence you are applying for.

Mandatory HMO & additional licence

Islington Council charge a standard HMO licence fee of £288 per letting, so that would be £1,440 for a shared house occupied by five unrelated people. The council have defined ‘letting’ as a bedsit or bedroom in a shared house.

Accredited landlords and property managers can get a licence fee discount of £43 per letting, which we think is a good idea.

Different fee rates apply for section 257 HMOs.

Selective licence

There is a standard fee of £800 per property, with a £75 discount for accredited landlords and property managers.

All licence application fees are payable in two instalments.

The fees are correct as of July 2024, but could be subject to change in the future. You can check the fees on the council’s website (you will need to scroll to the bottom of the page).

How do I apply for a licence?

Islington Council have an online licence application system that can be accessed via the council’s website.

We offer a licence application handling service in Islington and you can find further information here. Simply complete the online enquiry form to get the process underway.

You can find other companies offering a licence application handling service in our Landlord Suppliers Directory (here).

It is important to remember that submitting a licence application is only the start of the licence approval process. To help landlords understand what happens next, we have published a free guide here.

Are there any standards I need to comply with?

Yes, Islington Council’s HMO standards can be downloaded from the council’s website (you will need to scroll to the bottom of the page).

The standards cover a range of issues such as kitchen, bathroom and toilet facilities, fire precautions, heating, lighting, ventilation and room sizes.

It is important to note that new absolute minimum bedroom sizes for licensed HMOs have been introduced for HMO licence applications approved on or after 1 October 2018:

4.64m2 for a child under 10 years old
6.51m2 for one person over 10 years old
10.22m2 for two people over 10 years old

The council can still ask for larger minimum sizes. These new minimum sizes apply throughout England to HMOs licensed under a mandatory HMO or additional licensing scheme.

How many properties has the Council licensed?

In April 2024, Islington Council told us they had licensed 567 properties under the mandatory HMO licensing scheme, 3,247 properties under the additional licensing scheme and 1,719 properties under the selective licensing scheme.

The council keeps a public register of all licensed properties which is regularly updated. It can be viewed on the council’s website.

Are there lots of unlicensed properties still out there?

In April 2024, Islington Council told us they think there could be 700 properties that need licensing under the mandatory HMO licensing scheme, 3,500 properties that need licensing under the additional licensing scheme and about 5,000 properties that need licensing under their selective licensing scheme.

If you are one of the landlords who has not yet applied for a licence, we would encourage you to act now to avoid a hefty financial penalty.

What happens if I don’t get a licence?

Ignore the law and you could pay a heavy price. You risk being prosecuted by the council and if found guilty you could get a criminal record, be fined an unlimited amount and ordered to pay court costs and a victim surcharge.

Alternatively, the council can issue you with a civil penalty notice of up to £30,000 for not having the correct licence without any warning being given, so this is really serious stuff.

You could also be subject to a Rent Repayment Order and may have to repay up to 12 months rental income.

Whilst the property is unlicensed, you can’t use a Notice of Seeking Possession under Section 21 Housing Act 1988 to evict your tenants.

And following a successful prosecution, you would probably fail a fit and proper person assessment, making it very difficult for you to obtain a property licence in the future.

Don’t put your livelihood and reputation at risk. Make sure you comply with the law.

Does the Council take much housing enforcement action?

In London, most boroughs publish information about housing prosecutions and civil financial penalties on the Mayor of London’s ‘Rogue landlord and agent checker’. You can search the database by entering a property address, landlord / agent name or by selecting the relevant borough, available here.

How many accredited landlords are there?

There are landlord accreditation schemes operated by the London Landlord Accreditation Scheme, the National Residential Landlords Association (NRLA) and other organisations.

Whilst we don’t have any figures for the NRLA scheme, we have got information about the London Landlord Accreditation Scheme that is supported by all the London Boroughs. In January 2016, they told us there were 635 accredited landlords in Islington, which placed them in the top quartile of all London boroughs.

January 2018: 921 accredited landlords
January 2019: 976 accredited landlords
January 2020: 1,045 accredited landlords
January 2021: 1,132 accredited landlords
January 2022: 1,335 accredited landlords
January 2023: 1,587 accredited landlords

By January 2024 there were 1,734 accredited landlords which is above average when compared to all the London boroughs. To find out more about becoming accredited, you can visit the London Landlord Accreditation Scheme website here.

In addition to training and development, accredited landlords are entitled to various benefits, including discounted licensing fees in some boroughs. If you are not already a member, we would encourage you to think about joining!

Is the Council planning to introduce any new licensing schemes?

Islington Council held a selective licensing consultation from 23 December 2021 to 27 March 2022. The council consulted on plans to revoke the existing scheme and designate a new scheme covering the Finsbury Park, Tollington and Hillrise wards based on new ward boundaries. You can find more information on the council’s website.

On 19 February 2024, Islington Council designated the new selective licensing scheme and it came into force on 20 May 2024. You can view a copy of the public notice in the ‘At a Glance’ box on the top right of this page.

Do I need planning permission for my HMO?

You will need planning permission if you are changing your property from a single-family property to a house in multiple occupation (HMO) occupied by more than six people. HMOs occupied by more than six people fall within ‘sui-generis’ use for which planning permission is required. You will also need planning permission if you a splitting up a property into smaller self-contained units of accommodation.

For small HMOs, the rules are a bit more complicated. HMOs occupied and shared by between three and six people fall into planning use class C4 whereas single-family properties fall into planning use class C3.

In April 2024, Islington Council confirmed there is currently no HMO Article 4 Direction in force.

This means that you do not need planning permission for a change of use from a single-family property (use class C3) to a small HMO shared by three to six unrelated residents (use class C4), although the situation could change in the future.

Remember that this is only intended as general advice and no liability can be accepted for any reliance upon information provided. We would strongly encourage you to contact the Council’s Planning Department or seek independent legal advice before you start a new HMO development. You can find out more information on the council’s website.

Can you help me find the goods and services I need?

We certainly can. We understand the challenges of being a private landlord and so we have developed a Landlord Suppliers Directory to provide you with access to the goods and services you need. The Directory concentrates on businesses that operate in the London area.

Whether you a looking for a letting agent, want a property inventory for a new tenancy or fire risk assessment, we have got it covered – and far more besides!

As the leading experts in property licensing, we also offer a range of services ourselves. From handling the licence application process to advice on new HMO developments, we can help to ensure your property business remains compliant. If you need assistance, please drop us a line and see if we can help!

New suppliers are regularly being added and we would encourage you to take a look. Some of our featured listings also contain YouTube videos, helping you to find out more about the business.