In our February 2025 Landlord Update, we take a closer look at Property Licensing and what landlords need to know (and how they can avoid some of the hassle).
Property licensing regulations are tightening across the UK, particularly in London, where more councils are introducing mandatory schemes. Many landlords assume these rules won’t apply to them, but they often do.
Failing to obtain the right license can lead to severe penalties, including fines, rent repayment orders of up to 12 months' rent, and restrictions on serving eviction notices. However, landlords letting their property for temporary accommodation - such as through Apex Housing Solutions - are often exempt from these licensing requirements, providing a hassle-free alternative.
In this month’s update, we’ll cover:
When a rental property requires a license
What licensing changes are coming in 2025
The risks of renting without the correct license
How landlords can avoid licensing requirements with temporary accommodation
Does Your Rental Property Need a License and can Guaranteed Rent Help?
There are three key types of property licensing that landlords must be aware of:
Selective Licensing: If a council introduces Selective Licensing in an area, all rental properties must be licensed, not just HMOs. These schemes are aimed at improving housing conditions and addressing anti-social behaviour. Many London boroughs, such as Barking and Dagenham and Lambeth, have already introduced or expanded their schemes.
Additional Licensing: If you rent to three or more tenants from separate households who share facilities (e.g., a kitchen or bathroom), you may need an Additional Licence. This applies to smaller shared properties that don’t fall under standard HMO rules.
Mandatory HMO Licensing: If your property houses five or more tenants from two or more households, it’s classified as an HMO and always requires a licence. This ensures the property meets safety and management standards.
While these licensing rules can be complex and time-consuming for landlords, properties let for temporary accommodation, such as through Apex Housing Solutions, are mostly exempt from these licensing requirements (at time of writing). This means you can let your property without the stress of dealing with council regulations.
What’s Changing in 2025?
The government has given local councils greater authority to introduce licensing schemes without needing central approval. As a result, landlords will see more boroughs rolling out new requirements.
Upcoming changes in London include:
Barking and Dagenham: From 6th April 2025, a borough-wide Selective Licensing scheme will require all private rental properties to be licensed.
Lambeth: A second Selective Licensing scheme is being introduced in July 2025, affecting most of the borough except Waterloo, South Bank, and Vauxhall.
What Happens if You Rent Without the Correct Licence?
Renting out a property without the required licence carries significant risks:
Fines & Rent Repayment Orders – Councils can demand you repay up to 12 months’ rent.
Management Orders – The local authority could take over the management of your property.
Banning Orders – Some landlords may be permanently prohibited from renting properties.
Eviction Restrictions – Without the right licence, you could lose the ability to serve a Section 21 eviction notice.
These penalties can be costly and disruptive. That’s why many landlords choose to let their properties for temporary accommodation through Apex Housing Solutions, where licensing requirements don’t currently apply.
How to Apply for a Licence (Or Avoid It Altogether)
If your rental property requires a licence, the process typically involves:
Submitting an application – Often done online, requiring details about the property and its tenants.
Providing safety documentation – Including an EPC, Gas Safety Certificate, and Electrical Installation Condition Report (EICR).
Undergoing an inspection – Some councils require an in-person visit before issuing a licence.
However, if you prefer to avoid the licensing process altogether, letting through Apex Housing Solutions as temporary accommodation is a hassle-free alternative. Not only does this remove the need for council licensing (under current regulations), but it also ensures reliable rent payments and professional property management.
Final Thoughts
With licensing schemes expanding, landlords face increasing regulatory burdens. However, by choosing temporary accommodation letting through Apex Housing Solutions, you can currently sidestep licensing requirements - saving time, money, and stress.
We’ll continue to keep you updated with the latest developments in the private rental sector. If you’d like to explore how temporary accommodation can simplify your letting experience, get in touch with Apex Housing Solutions today.
And, as always, we recommend staying aware of future changes that could impact licensing exemptions to ensure full compliance.
Disclaimer
The information in this article is for general guidance only and should not be considered legal advice. Licensing requirements vary between councils and depend on individual landlord circumstances. While properties let for temporary accommodation through Apex Housing Solutions are often exempt from licensing, regulations may change, and exemptions may not apply in every case.
We strongly recommend that landlords seek independent specialist advice and check with their local council to ensure they fully understand their licensing obligations.
Apex: Your Trusted Partner in Property Management and Guaranteed Rent
At Apex, we take the stress out of being a landlord. With our no-cost Guaranteed Rent Services, you can enjoy financial security while we handle all aspects of managing your property, from rental compliance to day-to-day management.
For more advice, support, or feedback, get in touch with us!
Call us on 0203 030 4241
Email on lettings@apexhousingsolutions.co.uk
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