London is the most expensive city in England for HMO licensing. Fees vary by borough, by scheme type, and by room count — and they change frequently. A property in Tower Hamlets can cost you £977 for mandatory HMO licensing, while a comparable property in Barnet might be £1,200+. Boroughs like Haringey charge £1,360 for mandatory HMO, and inner London councils routinely charge per habitable room on top of a base fee.
This guide gives you the 2026 cost picture for every London borough, explains how fees are structured, and flags which boroughs have additional licensing schemes that catch smaller HMOs.
How London HMO Licensing Works
England has three licensing tiers. London uses all of them:
1. Mandatory HMO Licensing (national) Covers properties with five or more occupants from two or more households sharing amenities. Fee set by each council. Typically £900–£1,800 for a five-year London licence.
2. Additional HMO Licensing (local, borough-wide) Many London boroughs have extended licensing to cover HMOs with three or four occupants. This catches small house-shares that wouldn't trigger mandatory licensing. Fees typically £700–£1,200.
3. Selective Licensing (local, area-specific) Applies to single-family rentals in designated areas. Some boroughs use it extensively — Harrow runs six simultaneous selective schemes. Fees typically £580–£925.
The key point: If you're managing house-shares or bedsits in London, you likely need an HMO licence even if you have fewer than five tenants. Check your borough's additional licensing scheme before you assume you're exempt.
London Borough HMO Licence Costs — 2026 Table
| Borough | Mandatory HMO Fee (5yr) | Additional HMO Fee | Selective Licensing | Notes |
|---|---|---|---|---|
| Barking and Dagenham | ~£850–£1,100 | Borough-wide additional | Ward-based | |
| Barnet | £1,200 (from Jan 2026) | Additional scheme live | Partially designated | |
| Bexley | ~£750–£900 | Scheme active | Partially designated | |
| Brent | ~£1,000–£1,300 | Additional scheme | Wards designated | Consultation on new borough-wide additional scheme 2025 |
| Bromley | ~£800–£950 | Scheme active | Partially designated | |
| Camden | ~£1,100–£1,500 | Additional scheme | Wards designated | |
| Croydon | ~£900–£1,100 | Borough-wide additional | Wards designated | |
| Ealing | ~£900–£1,200 | Additional scheme | Wards designated | Article 4 Directions in effect (blocks HMO conversion) |
| Enfield | £735 (selective) + HMO | HMO additional scheme | 14 wards | Mandatory HMO fee = £735 |
| Greenwich | ~£800–£1,000 | Borough-wide | Partially designated | Fee per letting |
| Hackney | ~£925 (selective) | Additional HMO £1,400 | 17 of 21 wards (from May 2026) | Mandatory HMO via additional scheme |
| Hammersmith and Fulham | ~£900–£1,100 | Scheme active | Wards designated | |
| Haringey | £1,360 total | Additional scheme | Wards designated | |
| Harrow | ~£580 (selective) | Additional scheme | 6 schemes, rolling | Most complex licensing map in London |
| Havering | ~£750–£850 | Scheme being introduced | Mid-2026 launch | New first-time scheme |
| Hillingdon | ~£800–£1,000 | Scheme active | Partially designated | |
| Hounslow | ~£850–£1,000 | Scheme active | Wards designated | |
| Islington | ~£1,100–£1,300 | Additional scheme | Wards designated | |
| Kensington and Chelsea | ~£1,200–£1,500 | Scheme active | Wards designated | £30 multi-property discount |
| Kingston upon Thames | ~£750–£900 | Scheme active | Partially designated | |
| Lambeth | ~£1,000–£1,200 | Additional HMO | Partially designated | New selective scheme 2025–26 |
| Lewisham | ~£800–£1,000 | Additional scheme | Wards designated | |
| Merton | ~£750–£900 | Scheme active | Partially designated | |
| Newham | ~£1,450 | Borough-wide additional (captures ALL private rentals) | Borough-wide | Most aggressive licensing in London |
| Redbridge | ~£850–£1,000 | Additional scheme | Wards designated | |
| Richmond upon Thames | ~£750–£850 | Scheme active | Partially designated | |
| Southwark | ~£1,000–£1,200 | Additional scheme | Wards designated | |
| Sutton | ~£750–£900 | Scheme active | Partially designated | Article 4 Direction (no HMO permitted development) |
| Tower Hamlets | £977 + £68.50/room (mandatory, from Apr 2026) | £1,323 + £68.50/room (additional, from Apr 2026) | 4 wards (expires Sep 2026) | 75% additional HMO fee hike Apr 2026 |
| Waltham Forest | ~£895 (selective, from May 2025) | Additional scheme | 20 of 22 wards (from May 2025) | New scheme £895/5yr |
| Wandsworth | ~£850–£1,000 | Scheme active | Wards designated | |
| Westminster | ~£995 (selective) + £68/letting | HMO fees vary | 15 of 18 wards (from Nov 2025) | Outer London premium pricing |
Fees are indicative and subject to change. Always verify current rates on your council's licensing portal before applying. Fees effective 2026 or most recent published.
How Fees Are Structured
Most London boroughs split fees into two parts:
Part A (Application fee): Paid when you submit. Covers administration and initial assessment. Typically 40–60% of the total fee.
Part B (Inspection/Grant fee): Paid when the licence is approved. Covers the council's inspection and compliance monitoring. Non-refundable even if the licence is revoked early.
Some boroughs (Tower Hamlets, Westminster, Barnet) charge per habitable room on top of the base fee. A six-bedroom HMO in Tower Hamlets could cost:
- Base mandatory HMO fee: £977
- 6 rooms × £68.50: £411
- Total: £1,388
That figure doesn't include any additional selective or borough-wide scheme that might also apply to that property.
The Additional Licensing Trap
This catches many landlords out. Mandatory HMO licensing only applies to properties with five or more occupants. But if your borough has an additional licensing scheme, the threshold drops — sometimes to three or more occupants.
Hackney from May 2026: Borough-wide additional HMO licensing applies to all HMOs with three or more occupants. Mandatory HMO rules apply above that threshold.
Newham: The additional licensing scheme captures virtually every private rental property in the borough, whether or not it technically qualifies as an HMO under the national definition. Fees run around £1,450 per property.
Tower Hamlets: Additional HMO licensing has been borough-wide since April 2024, applying to all HMOs with three or more occupants. With 11,419 active licences, it's one of the most heavily licensed boroughs in England.
Before you assume your three-person house-share doesn't need a licence, check your borough's additional licensing register.
What Happens If You Don't Licence?
Operating an unlicensed HMO in London is a criminal offence. Maximum penalty on conviction is an unlimited fine and/or a criminal record. Civil penalties under the Renters' Rights Act 2025 reach £40,000 per property for non-compliance. You can also face:
- Rent repayment orders (up to 12 months' rent recovered by tenants)
- Management orders — the council can take over management of your property
- Prosecution and unlimited fines
- A ban from managing properties under the Housing and Planning Act 2016
How to Reduce Your HMO Costs
1. Apply early — some councils charge a premium for late or retrospective applications 2. Check multi-property discounts — Kensington and Chelsea offers £30 off per application when you submit three or more at once 3. Property accreditation — some councils reduce fees for landlords accredited with a recognised scheme (check your council's policy) 4. Use a managing agent — some boroughs require a local contact; a managing agent can satisfy this and keep you compliant 5. Understand your scheme — don't pay for a mandatory HMO licence if additional licensing already covers you, or vice versa
Check Your Borough
Use SchemeCheck's coverage tool to confirm your property's licensing requirements by postcode — it links directly to each council's licensing portal and flags all active schemes for your address.
For London landlords with multiple properties, the combination of high fees and complex overlapping schemes makes pre-acquisition due diligence essential. Running a postcode check before purchase takes 10 seconds and can save tens of thousands in fines and retroactive fees.