Hackney Landlords: Preparing Now for New Mandatory Licensing from May 2026

What’s Changing? New Licensing Schemes in Hackney

Hackney Council has approved two major licensing schemes coming into force on 1 May 2026:

• Additional Licensing: Applies borough-wide to most Houses in Multiple Occupation (HMOs), including shared and bedsit HMOs housing 3-4 people (excluding certain Section 257 HMOs).
• Selective Licensing: Covers 17 specified wards and applies to all privately rented properties occupied by single households or two unrelated people within these areas.

This significantly expands licensing requirements beyond traditional larger HMOs.

Why This Matters to Landlords

The schemes aim to raise housing standards and enable stronger enforcement against poorly managed properties. However, they also impose:

• Mandatory licensing obligations for much of Hackney’s private rented sector.
• Licence fees: £1,400 per additional licence for HMOs and £925 per selective licence.
• Potential penalties for non-compliance, including fines and rent repayment orders.

For landlords, this represents both a compliance challenge and notable cost implications.

Financial Implications: Budgeting for Licence Fees

Each licence application requires a significant fee:

• Additional licence (HMOs): £1,400 per property
• Selective licence (other private rentals in designated wards): £925 per property

Landlords with multiple properties should budget accordingly. These fees are typically non-refundable and payable upfront with the application.

Operational Impact: Application Process and Property Standards

Licensing involves more than fees. Landlords must meet Hackney's housing standards, including addressing any Category 1 or serious Category 2 hazards under the Housing Health and Safety Rating System (HHSRS).

Landlords should:

• Conduct thorough property audits against Hackney’s standards well before May 2026.
• Prepare to submit applications with detailed documentation.
• Expect possible inspections and ongoing compliance monitoring after licence grant.

Tenant Relations and Strategic Considerations

Licensing schemes often lead to better-managed properties, improving tenant satisfaction and reducing disputes. Landlords should:

• Communicate proactively with tenants about upcoming changes.
• Factor licence costs into rent reviews or portfolio financial planning.
• Consider effects on short-term letting strategies, especially within selective licensing wards.

Different Landlord Profiles: What to Watch

• Single-unit landlords: Confirm if your property is in one of the 17 selective licensing wards or requires additional licensing as an HMO.
• HMO landlords: Borough-wide additional licensing applies to all HMOs except some Section 257 HMOs.
• Portfolio landlords: Assess all properties against the new criteria; plan for multiple applications and fees.
• Accidental landlords: Licensing rules still apply if your property falls under the schemes, even if rented out occasionally.

Recommended Next Steps

1. Identify applicability: Use Hackney Council’s online postcode checker or licensing maps.
2. Budget planning: Consider licence fees and potential repair costs.
3. Property audits: Address any disrepair or health and safety issues now.
4. Prepare documentation: Gather tenancy agreements, gas safety certificates, and other required paperwork.
5. Engage professionals: Consult letting agents or licensing experts familiar with Hackney’s schemes.
6. Apply early: Submit licence applications well before 1 May 2026 to avoid delays and penalties.

How Rentals & Sales Can Help

Our team offers portfolio reviews to identify licensing obligations, compliance audits to assess property standards, and pricing strategy advice factoring in licensing costs. We assist with licence applications and tenant communications to ease administrative burdens.

Contact us for a tailored landlord compliance consultation.

Compliance disclaimer: This article is for informational purposes only and does not constitute legal advice. Landlords should consult Hackney Council and qualified professionals regarding specific licensing requirements and obligations.