Kensington and Chelsea: Rental Licensing Schemes

The Royal Borough of Kensington and Chelsea levies some of the highest HMO licensing fees in England, totaling £1,450 for a standard five-person property. This reflects the borough's exceptionally high property values and the complex nature of its rental market.

Current Licensing Schemes in Kensington and Chelsea

Despite its affluence, Kensington and Chelsea has a significant House in Multiple Occupation (HMO) sector, particularly concentrated in North Kensington, Earl's Court, and specific areas of Chelsea where large historic properties have been subdivided. To regulate this, the council operates two concurrent licensing schemes.

Mandatory HMO Licensing

This national scheme applies borough-wide. A mandatory licence is required if your property houses five or more people from two or more separate households who share basic amenities like a kitchen or bathroom, regardless of the building's number of storeys.

Additional HMO Licensing

To cover smaller shared properties not subject to mandatory licensing, the council implemented a borough-wide Additional HMO Licensing scheme.

Under this scheme, a licence is required if your property is occupied by three or four people from two or more separate households who share facilities.

A notable feature of the Kensington and Chelsea scheme is its inclusion of purpose-built flats. If you own a purpose-built flat in a block with more than two self-contained flats, and it is occupied by three or more people sharing facilities, it falls under this additional licensing scheme, even if exempt from mandatory licensing.

Fee Structure and Discounts

The council divides its licensing fees into two parts, adhering to legal requirements for charging administration versus enforcement costs. The base fee applies to properties with up to five units of accommodation.

For very large properties, HMOs with 26 or more lets incur additional officer support costs due to inspection complexity, reflected in bespoke fee calculations.

Available Discounts

Kensington and Chelsea offers financial reductions for proactive landlords:

* Accreditation Discount: A £200 reduction is available if you are accredited with the London Landlord Accreditation Scheme (LLAS), the National Residential Landlords Association (NRLA), or if you employ a named manager who is Safeagent or Propertymark approved and holds a Level 3 Award in Residential Letting and Property Management.

* Multiple Applications: A £30 reduction per application applies if you submit more than three HMO licence applications simultaneously with the same landlord and managing agent.

Note: Eligibility for discounts is forfeited if the council discovers an unlicensed HMO before your application. The council actively uses data matching to identify unlicensed properties.

Minimum Property Standards

When applying for a licence, your property must meet the council's specific minimum HMO standards. These cover safety, room sizes, and amenity ratios. For instance, a single bedroom for an adult must be at least 6.51 square metres, and a double room at least 10.22 square metres. Adequate bathroom facilities, typically one per five occupants, and a suitable fire detection system (e.g., Grade D, LD2 for a standard shared house) are also required.

What this means for your property

Consider a four-bedroom Victorian terraced house in North Kensington rented to four young professionals sharing kitchen and bathroom facilities.

This property falls below the Mandatory Licensing threshold but requires a licence under the Additional HMO Licensing scheme, effective 1 June 2023.

If you apply today, you will pay the £974 Part A fee upfront. If you are an NRLA accredited landlord and provide proof, you can claim the £200 discount. Upon council approval, the remaining Part B fee will be automatically debited.

Failure to secure this licence can result in significant penalties, including Civil Penalties up to £30,000 per offence. Additionally, tenants can seek a Rent Repayment Order (RRO) for up to 12 months of rent, and you will lose the ability to serve a valid Section 21 eviction notice.

How to apply

The application process in Kensington and Chelsea is online. Gather the necessary documentation beforehand for a smooth submission.

1. Prepare documents: You need a clear floor plan showing room sizes, layout, fire doors, and smoke alarm locations.

2. Gather safety certificates: Ensure you have a current Gas Safety Certificate (if applicable), a satisfactory Electrical Installation Condition Report (EICR) within five years, and a valid Energy Performance Certificate (EPC).

3. Prepare proof of accreditation: For the £200 discount, have your LLAS or NRLA certificate ready as a PDF.

4. Submit application: Navigate to the Royal Borough of Kensington and Chelsea's online licensing portal. Create a MyRBKC account if needed.

5. Pay Part A: Complete property and management declarations, then pay the £974 Part A fee.

6. Wait for processing: The council will review your application. If approved, the Part B fee will be collected, and your draft licence issued for consultation before the final licence is granted for up to five years.

Check your specific property

Property licensing rules vary by location, occupancy, and property layout. Do not assume your property is exempt.

Check your specific property using our search tool to determine which licences apply to your Kensington and Chelsea address.