Rental Property Licensing in Tower Hamlets

Tower Hamlets has one of the most active property licensing regimes in England. If you own or manage a rental property in the borough, there is a very good chance it needs a licence. Here is what you need to know.

Why Tower Hamlets takes licensing seriously

Tower Hamlets is one of the most densely populated boroughs in London. Private renting makes up a significant share of the housing market, and the council has historically faced challenges with poorly managed properties, overcrowding and anti-social behaviour linked to some parts of the private rented sector.

To address this, the council operates three separate licensing schemes simultaneously: selective licensing, additional licensing for smaller HMOs, and mandatory HMO licensing for larger shared properties. Between them, these schemes cover a very large proportion of privately rented homes in the borough.

Selective licensing in Tower Hamlets

The selective licensing scheme applies to privately rented properties in specific wards: Whitechapel, Weavers, Spitalfields and Banglatown (based on the 2014 ward boundaries). Within these areas, most properties rented to a single household or two individuals need a selective licence.

One important change came into force on 1 April 2024. Any property within the selective licensing area that is occupied as an HMO (three or four people forming two or more separate households who share facilities) now requires an additional licence rather than a selective licence. If you held a selective licence for such a property before that date, the council will convert it to an additional licence for the remainder of the licence period at no extra cost.

Additional licensing for smaller HMOs

The additional licensing scheme has been in place since 1 April 2019 and covers the entire borough. It applies to rented properties occupied by three or four people living as two or more separate households who share facilities. It also covers purpose-built blocks of three or more flats where five or more tenants from two or more households are living.

This is broader than mandatory HMO licensing, which only kicks in at five or more occupants. In Tower Hamlets, even a property with three or four tenants from different households needs a licence.

Mandatory HMO licensing

Mandatory licensing applies borough-wide to any property occupied by five or more people from two or more separate households who share facilities. This is a national requirement under the Housing Act 2004, but Tower Hamlets enforces it actively.

One nuance to be aware of: purpose-built blocks of three or more flats with five or more occupants from two or more households require an additional licence rather than a mandatory licence. If you are unsure which category applies to your property, the council's online filter tool can help you work it out.

What a licence costs

The council publishes its current fee schedule on its fees and charges page. Fees are reviewed periodically, so it is worth checking the latest figures before applying. Applications are processed online and can take up to 12 months to complete due to current processing volumes.

What happens if you do not have a licence

Operating a licensable property without a licence in Tower Hamlets can result in a civil penalty of up to £30,000. Tenants may also be able to apply for a Rent Repayment Order, which can require you to repay up to 12 months of rent. In some cases, unlicensed landlords can also face difficulties regaining possession of a property.

How to check if your property needs a licence

The quickest way is to use Tuxa. Enter the property address and you will get an immediate answer on whether a licence is required and which type applies. You can also use the council's own postcode checker on the Tower Hamlets website, or contact the housing licensing team directly at [email protected] or on 020 7364 5008.

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Tuxa monitors licensing scheme data across England. Use the search above to check any property in Tower Hamlets or anywhere else in the country.