Licensing

Correct as of January 2026

Landlords letting residential property in South-East London must ensure they comply with local authority licensing requirements. Selective licensing is a statutory scheme introduced under the Housing Act 2004 and applies to privately rented properties within designated council areas.

Letting a property that requires a licence without holding one is a strict liability offence and may result in significant financial and legal consequences.

Legal Consequences of Non-Compliance

Failure to licence a property where required may lead to:

• Civil penalties of up to £30,000 per offence
• Rent Repayment Orders (up to 12 months’ rent)
• Formal investigation, enforcement action, or prosecution by the local authority

Impact on Possession & Enforcement

Failure to hold the correct licence may also have serious implications for possession proceedings, including:

• Inability to serve a valid Section 21 Notice (while Section 21 remains in force
• Restrictions on using Section 8 possession grounds, including both mandatory and discretionary grounds, where licensing and wider compliance requirements have not been met
• Under the Renters’ Rights Act, continued non-compliance may prevent landlords from lawfully regaining possession altogether, even where rent arrears or other tenancy breaches exist

Borough-by-Borough Licensing Overview

Southwark

• Selective licensing applies only in designated areas
• Most privately rented properties within the designated zones require a licence, including single-family lets
• Designations are street-specific and must be checked carefully

Lewisham

• Selective licensing applies across large parts of the borough
• In many locations, all private rented properties require a licence
• Operates alongside Additional HMO Licensing, which may also apply
• Lewisham has one of the widest-reaching schemes in South-East London

Lambeth

• Selective licensing applies in specific wards only
• It is not borough-wide
• Both single lets and HMOs may require licensing depending on location
• Properties must be checked against current ward designation maps

Where a property should be licensed but is not, landlords may find that:

• Section 8 claims are delayed, challenged, or dismissed
• Rent arrears grounds are undermined by compliance failures
• Enforcement action by the local authority takes precedence over possession proceedings

Landlords who are not compliant risk being unable to recover possession even in cases of serious breach.
Landlords are strongly advised to confirm licensing requirements before letting or re-letting a property. We provide licensing checks, applications, and ongoing compliance management across South-East London.

 Please contact Property Management on 0208 702 8555 or propman@pedderproperty.com if you have any questions.