HMO licensing rules are not consistent across South East London. A five-person house share will generally require a mandatory HMO licence wherever it is located, but smaller HMOs may also need additional or selective licensing depending on the borough.
The fees vary considerably too. Based on current published charges, licensing a typical five-bedroom HMO can cost approximately £1,650 in Southwark, £2,000 in Bexley and between £2,500 and £2,650 in Lewisham, Greenwich and Bromley.
Landlords must therefore check the rules for the individual property rather than assuming that experience in one borough applies to another.
Need help checking the position for your HMO? Sturstons can review the property, occupancy and borough requirements before you apply.
Fees and schemes in this guide were checked in August 2026. Councils can amend charges and introduce or renew licensing schemes, so always confirm the current position before applying.
What is an HMO?
A property will generally be an HMO where at least three people forming more than one household live there and share facilities such as a kitchen, bathroom or toilet.
A household can be:
- One person
- A couple
- Members of the same family
- Certain relatives living together
Five unrelated tenants sharing a house would normally form five households. Three friends sharing a flat would also usually create an HMO, even though that property might not require mandatory licensing.
This distinction matters because a property can legally be an HMO without falling within the national mandatory licensing rules.
When is an HMO licence mandatory?
Across England, an HMO will generally require a mandatory licence if:
- It is occupied by five or more people
- Those occupiers form two or more households
- They share one or more basic facilities
The number of storeys is no longer relevant to mandatory licensing. A five-person HMO can require a licence whether it occupies one, two or three floors.
Mandatory licences are normally granted for up to five years, although a council can issue a shorter licence where it has concerns about the property, application or management arrangements.
What is additional HMO licensing?
Councils can introduce additional licensing schemes covering HMOs that do not meet the five-person mandatory licensing threshold.
In practice, this commonly brings properties occupied by three or four unrelated tenants into licensing.
This creates an important difference across South East London:
- Lewisham, Greenwich and Southwark operate additional HMO licensing
- Bromley only operates mandatory HMO licensing
- Bexley does not currently operate borough-wide additional HMO licensing, although selective licensing applies in Belvedere
A four-bedroom house shared by four unrelated professionals may therefore need an HMO licence in Lewisham but not necessarily in Bromley.
HMO licensing costs by borough
The table below compares the principal rules and the approximate fee for a standard five-letting HMO.
| Borough | Smaller HMOs licensed? | Approximate five-letting mandatory fee |
|---|---|---|
| Lewisham | Yes (borough-wide additional licensing) | £2,500 standard |
| Greenwich | Yes (borough-wide additional licensing) | £2,542.50 |
| Southwark | Yes (borough-wide additional licensing) | £1,653.50 |
| Bromley | No additional HMO scheme | £2,648 |
| Bexley | No borough-wide additional HMO scheme | £2,000 |
These are licence fees rather than the complete cost of making a property compliant. Fire precautions, electrical work, additional facilities, floor plans and professional reports may substantially increase the overall cost. Our guide to the cost of running an HMO covers the wider picture.
Lewisham HMO licensing
Lewisham operates both mandatory and additional HMO licensing across the borough.
Mandatory licensing applies to HMOs occupied by five or more people forming more than one household.
Lewisham’s additional licensing scheme also covers many properties occupied by three or four unrelated people sharing facilities. This includes:
- Shared houses and flats with three or four unrelated occupiers
- Certain HMOs within purpose-built blocks
- Arrangements where a resident landlord has more than two lodgers
Properties occupied by only two sharers and ordinary family homes are not covered by the additional HMO scheme.
Lewisham HMO licence cost
Lewisham calculates its HMO licensing fee per lettable unit:
- Part 1 application fee: £250 per unit
- Part 2 enforcement fee: £250 per unit
- Total standard fee: £500 per unit
A five-bedroom HMO with five lettable rooms would therefore normally cost £2,500.
Accredited landlords currently receive a reduction in the Part 2 charge, bringing the fee to £400 per unit, or £2,000 for five lettable rooms.
Lewisham’s additional scheme has operated since 5 April 2022. Licences are normally granted for up to five years. Check Lewisham’s current HMO licensing rules and fees.
Greenwich HMO licensing
Royal Greenwich requires a mandatory licence where five or more tenants forming at least two households share facilities.
Additional licensing applies borough-wide to smaller HMOs occupied by three or more people forming two or more households.
Household counting matters here. A family of four forms a single household, so their home is not an HMO at all. Two couples sharing a flat form two households, so the property will generally fall within the additional scheme. Where the arrangement is unusual, the circumstances need to be checked carefully.
Greenwich HMO licence cost
Royal Greenwich charges according to the number of lettings or units:
- Up to five lettings: £508.50 per unit
- Six or more lettings: £508.50 for each of the first five, then £305.10 for each additional unit
A five-letting HMO would therefore cost approximately £2,542.50. A 15% discount applies to licence renewals.
The council states that these licence fees are exempt from VAT.
Selective licensing also applies to certain privately rented properties in wards in the Woolwich and Plumstead area. A property that already requires an HMO licence will not normally require a separate selective licence.
Check whether a property needs a Royal Greenwich licence.
Southwark HMO licensing
Southwark operates mandatory and additional HMO licensing.
Its additional scheme covers HMOs not included within mandatory licensing, including many shared properties occupied by three or four people.
It can also cover:
- Certain HMOs in purpose-built blocks
- Some buildings converted into self-contained flats under Section 257 of the Housing Act 2004
Section 257 properties can be more complicated because the building and individual flats may fall under different licensing requirements.
Southwark HMO licence cost
From 1 April 2026, Southwark’s published charges are:
- Mandatory licence for the first five lettings: £1,653.50
- Each letting above five: £110
- Additional HMO licence: £1,433
- Section 257 HMO licence: currently no charge
Fees are divided into Part A and Part B payments. Eligible Gold Standard Charter landlords can receive a reduction in the Part B fee.
Paper applications, invoices and certain alternative payment arrangements can attract additional administration charges.
View Southwark’s current property-licensing fees.
Bromley HMO licensing
Bromley currently operates the national mandatory HMO licensing scheme but does not have an additional HMO licensing scheme.
An HMO occupied by five or more people forming two or more households will therefore require a mandatory licence.
A smaller HMO occupied by three or four unrelated people will not ordinarily need an HMO licence solely because it is an HMO. It must still comply with the relevant HMO management, fire and housing standards.
Bromley HMO licence cost
For 2026/27, Bromley’s fee for up to five lettable units is:
- Part 1 administration fee: £1,589
- Part 2 licensing fee: £1,059
- Total: £2,648
Each additional unit costs £318 under Part 1 and £212 under Part 2, producing a total additional charge of £530.
The licence normally lasts for five years. View Bromley’s HMO application requirements.
Bexley HMO licensing
Bexley requires a mandatory licence for HMOs occupied by five or more people forming two or more households.
It does not currently operate a borough-wide additional HMO licensing scheme. A three- or four-person HMO outside a selective licensing area may therefore not require a property licence.
However, Bexley operates selective licensing in Belvedere ward. Smaller HMOs and other privately rented properties within that area may require a selective licence even where mandatory HMO licensing does not apply.
Bexley HMO licence cost
Bexley’s published mandatory HMO fee is:
- Basic charge: £350
- Additional charge: £330 per letting
For five lettings, the total would be £2,000.
The published renewal charge is £350 plus £205 per letting. Accredited landlords or agents may qualify for a £50 discount.
Read Bexley’s property-licensing guide.
What does an HMO licence cover?
A licence usually states:
- The maximum number of occupants
- The maximum number of households
- Which rooms can be used as bedrooms
- The required fire-safety arrangements
- Property-management conditions
- Waste and recycling requirements
- Requirements for safety certificates
- Any work the landlord must complete
The council will also consider whether the proposed licence holder and manager are fit and proper persons and whether suitable management arrangements are in place.
Applicants may need to provide:
- A property floor plan
- Gas Safety Certificate
- Electrical Installation Condition Report
- Fire alarm and emergency-lighting certificates
- Energy Performance Certificate
- Tenancy details
- Information about the licence holder and manager
- Details of mortgages and other interested parties
National minimum sleeping-room sizes for licensed HMOs are 6.51m² for one person aged ten or over and 10.22m² for two people aged ten or over. Councils can adopt larger local standards and may also require adequate shared living, kitchen and bathroom space.
HMO licensing and planning permission are separate
Obtaining an HMO licence does not confirm that the property has the correct planning use.
Licensing examines the occupation, condition and management of the property. Planning determines whether the building can lawfully be used as an HMO.
Some boroughs have Article 4 Directions removing permitted development rights for changes from a family home to a small HMO. Lewisham and Bexley, for example, have borough-wide controls requiring planning permission for many new C3-to-C4 conversions.
Large HMOs occupied by more than six people will normally fall within sui generis use and usually require planning permission regardless of Article 4 restrictions.
Landlords should check both licensing and planning before purchasing, converting or increasing the occupancy of an HMO.
What happens if an HMO is not licensed?
Operating a licensable HMO without a licence can lead to:
- A substantial civil financial penalty
- Prosecution and an unlimited fine
- A Rent Repayment Order covering rent received
- Restrictions on recovering possession
- Difficulty refinancing or selling the property
- The council taking over management in serious cases
Applying after the council contacts you does not necessarily prevent enforcement action.
The licence must also be renewed before it expires. A licence belongs to the named holder and generally cannot simply be transferred to a new owner.
Frequently asked questions
How much does an HMO licence cost in London?
There is no single London-wide charge. For a typical five-bedroom HMO in the boroughs covered above, published fees currently range from approximately £1,653.50 to £2,648. This excludes the cost of compliance work and professional reports.
Do all HMOs need a licence?
No. HMOs occupied by five or more people forming two or more households normally require mandatory licensing. Smaller HMOs only require licensing where an additional or relevant selective licensing scheme applies.
Does a four-person HMO need a licence?
It depends on the borough and household arrangement. Four unrelated sharers will generally require additional licensing in Lewisham, Greenwich and Southwark, but not under the current HMO schemes in Bromley or most of Bexley.
How long does an HMO licence last?
An HMO licence is normally granted for up to five years. Councils can issue a shorter licence because of late applications, missing documents, property concerns or previous management problems.
Is an HMO licence charged per property or per bedroom?
The method varies. Lewisham and Greenwich charge according to lettable units, while Southwark uses a base fee for the first five lettings. Always check how the council defines a letting or unit.
Can tenants move in while an HMO licence application is being processed?
A landlord who has submitted a valid application will generally be treated differently from someone operating without having applied. However, the proposed occupancy must be safe, lawful and within the number the council is likely to permit. Obtain confirmation from the council where there is any uncertainty.
Does an existing HMO licence transfer when the property is sold?
Normally not. HMO licences are granted to a specific licence holder and are generally non-transferable. A buyer should investigate the licensing position before completion and may need to make a fresh application.
Is an HMO licence fee tax-deductible?
A licensing fee incurred wholly and exclusively for a property-rental business will generally be treated as a business expense, subject to the landlord’s circumstances and current tax rules. Confirm the treatment with a property accountant.
Check before you let
The definition of an HMO is national, but the point at which it requires a licence, and the amount the landlord must pay, can change from one South East London borough to the next.
Check the proposed number of occupiers, how many households they form, the council’s current scheme, planning use and local HMO standards before advertising the rooms.
Sturstons provides HMO management across South East London, including licensing administration, compliance monitoring, tenant sourcing, inspections and maintenance coordination.
To discuss an existing or proposed HMO, contact Sturstons on 0208 108 5974 or request an HMO management appraisal.
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