Do You Need a Newham Landlord Licence?

On top of the usual health, safety and financial arrangements, landlords in Newham may need a landlord licence – and they’re not just for HMOS. New licensing schemes apply to private rented properties of all sizes, so read on to find out if you’ve got the paperwork you need.

The London Borough of Newham landlord licensing rules changes on 1st June 2023, introducing a selective licensing scheme. As a result, most landlords now need a licence to rent out a property in Newham – if you rent out unlicensed properties, you could face prosecution.

If you rent out a property in Newham including Stratford, Plaistow, Chadwell Heath, East Ham and Forest Gate, you need to apply for the correct landlord licence. We explain the basics of the current Newham landlord licence rules.

What is a landlord licence in Newham?

Your local council decides which schemes will operate in which wards – Newham Council landlord licensing schemes cover most private rented properties in the borough. There are actually three common types of landlord licence, and it’s a legal requirement to hold one if it applies to your property.

Landlord licences were introduced to maintain good standards across private rented properties and minimise anti-social behaviour and deprivation. They also give your local council greater oversight of who’s in charge. Landlords must be a fit and proper person with good character, so any past criminal convictions or property rule violations will be taken into account, and you must provide evidence of gas and electrical safety checks and the EPC when you apply for or renew the licence.

Who needs a landlord licence?

Almost every Newham landlord needs a landlord licence, with Newham’s landlord licensing schemes covering most wards except Royal Victoria and Stratford Olympic Park. If you’re close to a boundary, check to make certain with Newham Council’s interactive map of selective licence zones.

You can apply through the London Borough of Newham landlord licensing portal. But whatever you do, don’t ignore the rented property licensing rules. Landlords without a licence could get a financial penalty notice of up to £30,000, or an unlimited fine if you end up in court. If you don’t get a mandatory HMO licence, you could be fined and forced to repay up to 12 months’ rent.

Want to know more? Licensing is just one layer of your obligations as an East London landlord — read our full guide to private landlords’ responsibilities and find out whether PAT testing is a legal requirement under the conditions of your licence.

Types of Newham landlord licence

There are three types of landlord licence in the London Borough of Newham, depending on the property you rent out.

1 Mandatory HMO licence

If your rent a house in multiple occupation (HMO) to five or more people from at least two separate households, you need to apply for a mandatory HMO licence. The Housing Act defines an HMO as a property that’s shared by at least 3 people with shared facilities, usually a bathroom or kitchen.

The fee for a mandatory HMO licence starts at £1,400 and depends on the number of lettings, with a discount for EPC ratings of C or higher and recognised accredited landlord association members.

2 Additional Licensing scheme

Under the additional HMO licensing scheme, as of 1st January 2023, landlords need an additional licence for an HMO that’s rented to 3 or 4 people who make up two households. An additional landlord licence in Newham costs £1,250 and is valid for 5 years, but there are discounts for newly private rented properties and EPC ratings of C or higher.

3 Selective Licensing scheme

You need a licence for any rental property in Newham’s selective licensing area (unless it needs an HMO licence instead). Landlords can apply for a selective licence through the My Newham Portal, remembering that it may take up to 10 weeks for a decision.

Once you obtain a licence, it’s valid for up to 5 years at a cost of £750. But you may get a discount if you’re renting the property to private tenants for the first time, you’ve got an EPC rating of C or higher, or you’re a member of a landlord accreditation organisation such as the National Residential Landlord Association (NRLA), Propertymark or British Landlords Association (BLA).

Want to find out more? Keeping your licensed property in good order requires regular oversight — explore our guidance on landlord property inspections and ensure your electrical safety certificates are current, as both are typically required under Newham’s licensing conditions.

Are there any landlord licensing exemptions in Newham?

If you rent out a holiday home, business premises or you’re a registered social landlord, you may qualify for an exemption. You can also be granted a temporary exemption notice lasting 3 months if, for example, you’re currently selling the property. But it’s not granted automatically, so apply to the council for confirmation that you’re covered.

If you have any questions about getting a Newham landlord licence, we can help. Our team can also advise if you’re preparing to rent out a property in Barking, Gants Hill, Seven Kings or Ilford. Speak to Highcastle Estates today to take your next steps as a landlord.