LetLens / Licensing by council / Islington
Landlord licensing in Islington
Mandatory HMO licensing applies across England, so a property in Islington let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Islington also runs additional HMO licensing and selective licensing, which can bring smaller HMOs, or every private rental, into licensing. A replacement selective licensing designation has already been made and is due to start.
The licence you need turns on who lives in the property. Find the line that describes your let.
- Required by national lawThe same in all 296 English councils. Not an Islington decision.
Your propertyLet to 5 or more people forming 2 or more households who share a kitchen, bathroom or toilet
You needMandatory HMO licence In force England-wide
It costs£1,400 for a 5-bedroom HMO£900 base + £100/bedroom (max £3000)
WhereEverywhere in Islington, as everywhere in England. Scope, fee schedule and source
- What Islington requires on topSchemes this council chose to run, and what differs from the council next door.
Your propertyA smaller shared house the national scheme does not reach, typically 3 or 4 sharers forming 2 or more households
You needAdditional HMO licence In force
It costs£1,300 for a 4-bedroom HMO£900 base + £100/bedroom (max £3000)
WhereEverywhere in Islington. Scope, fee schedule and source
Your propertyLet privately inside a designated area, whether or not it is an HMO
You needSelective licence In force
It costs£850, the same for a rental of any size
Where3 designated wards, not the whole of Islington. Scope, fee schedule and source
- Planning permission, a separate questionNot licensing. Whether you may create an HMO at all, decided by the council’s planning side.
Your planConverting a house (use class C3) into a small HMO (use class C4)
You needPlanning permission None in force
WhereNo direction here, so this is normally permitted development. The direction, its dates and its boundary
Each fee is for the example property named on its own line, from the council’s published schedule. Other sizes are priced separately; the full schedules, discounts and surcharges are below.
Or open N1 1EX, a postcode near the centre of Islington, to see what a full report looks like.
What changes next in Islington
Already decided, not yet in force. A property bought today is bought into these, so they matter more than the current position if you are still choosing.
- Selective licensing designationDate not yet setProposed selective licensing expansion 2025 (seven-ward extension) - APPROVED BY EXECUTIVE, NOT YET IN FORCE. Made but not in force yet, so it does not apply today.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Islington, in the council’s own words, with the designations in force, the whole published fee schedule and the source for every figure. The three regimes can stack: a property can need a licence under one and still be caught by another.
Mandatory HMO licensing In force England-wide
Fee, 5-bed HMO£1,400£900 base + £100/bedroom (max £3000)
- Where it applies
- National scheme
- Which properties
- Houses or flats occupied by 5 or more people forming 2 or more households who share amenities such as a kitchen, bathroom or toilet (statutory mandatory HMO licensing, section 55/254 Housing Act 2004)
The published fee schedule
- Base fee
- £900
- Base fee, paid in two parts
- £500 on application, then £400 when the licence is granted
- Size charge
- £100 per bedroom, capped at £3,000
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026 (1 February 2026 onwards)
Discounts
- Accreditation (licence holder is a member of a specified accreditation body, e.g. ATLAS/London Landlords Accreditation Scheme): £75
- EPC rating A, B or C submitted at time of application: £50
- Renewal (property was licensed under a previous 5-year mandatory/additional/selective scheme): £25
Other charges
- Large student development (HMO with more than 15 students): Part B per letting is GBP 35 instead of GBP 100 (total GBP 900 plus GBP 35 per letting): £35
Additional HMO licensing In force
Fee, 4-bed HMO£1,300£900 base + £100/bedroom (max £3000)
- Where it applies
- Council-wide
- Which properties
- Smaller HMOs occupied by three or four persons in two or more households (not all related) sharing amenities and below the mandatory 5-person threshold, including flats within purpose-built blocks; PLUS section 257 HMOs (buildings converted into self-contained flats not to 1991 Building Regulations, all flats privately rented and in single ownership)
- Designations in force
- The London Borough of Islington Designation of an Area for Additional Licensing of Houses in Multiple Occupation 2025
- Designation period
- 1 February 2026 to 31 January 2031
The published fee schedule
- Base fee
- £900
- Base fee, paid in two parts
- £500 on application, then £400 when the licence is granted
- Size charge
- £100 per bedroom, capped at £3,000
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026 (1 February 2026 onwards)
Discounts
- Accreditation (licence holder is a member of a specified accreditation body): £75
- EPC rating A, B or C submitted at time of application: £50
- Renewal (property was licensed under a previous 5-year mandatory/additional/selective scheme): £25
Other charges
- Section 257 HMO (converted building, whole building) - Part A: £450
- Section 257 HMO (converted building, whole building) - Part B: £350
- Section 257 HMO (converted building) - total per building (flat fee, no per-letting element): £800
Selective licensing In force
Licence fee, any size£850
- Where it applies
- 3 designated wards
- Which properties
- All privately rented houses/flats occupied by a single person, two people sharing (any relationship), or any number of persons forming a single household (family). Excludes HMOs (mandatory or additional), owner-occupied and social-rented homes.
- Designations in force
- The London Borough of Islington Designation of an Area for Selective Licensing 2024
- Designation period
- 20 May 2024 to 19 May 2029
- Proposed
- Proposed selective licensing expansion 2025 (seven-ward extension) - APPROVED BY EXECUTIVE, NOT YET IN FORCE
The London Borough of Islington Designation of an Area for Selective Licensing 2024 covers Finsbury Park, Hillrise, Tollington.
The published fee schedule
- Fee
- £850
- Paid in two parts
- £450 on application, then £400 when the licence is granted
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026 (1 February 2026 onwards)
Discounts
- Accreditation (licence holder is a member of a specified accreditation body): £75
- EPC rating A, B or C submitted at time of application: £50
- Renewal (property was licensed under a previous 5-year mandatory/additional/selective scheme): £25
Article 4 and HMO planning permission in Islington None in force
No HMO Article 4 direction is in force in Islington, so converting a house into a small HMO occupied by no more than six residents (use class C4) is normally permitted development and does not need planning permission on those grounds. An HMO for seven or more residents falls outside class C4 and needs permission anyway.
The research note behind this verdict
What happens if you let without a licence
Letting or managing an unlicensed property that needs a licence is a criminal offence, under section 72 of the Housing Act 2004 for an HMO and section 95 for a property caught by selective licensing. A council can prosecute, or impose a civil penalty instead. For conduct on or after 1 May 2026 that penalty can be up to £40,000 per offence, raised from £30,000 by the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026. Tenants and the council can also apply for a rent repayment order, which for conduct from the same date can claw back up to two years of rent, up from one, under section 103 of the Renters' Rights Act 2025.
Both of those maxima apply only to conduct on or after 1 May 2026. Earlier conduct is still judged against the old £30,000 and twelve-month limits. Each breach is normally penalised separately, so an unlicensed portfolio in Islington multiplies the exposure rather than capping it.
The letting market in Islington
Licensing is only one side of the sum. These are medians from real listings we have collected, with the number of listings behind each one, because a median over a handful of adverts is a different claim from a median over hundreds.
- Median room rent£1,053 pcmFrom 423 room listings in Islington.
- Median whole-property rent£2,684 pcmFrom 201 whole-property listings.
- Typical 4-bed rent£3,964 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+33%Five rooms let individually against one four-bedroom whole-property let, before the extra cost, licensing and voids that come with an HMO.
- Median sale price£600,000Across 355 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let5.4%Median whole-property rent for a year against the median sale price. Before voids, management, repairs, licensing and finance, all of which a real return has to carry.
- Gross yield, 5-room HMO10.5%Five rooms at the median room rent against the same median sale price. The higher figure is what pays for the licence, the extra management and the higher voids, rather than being profit on top of them.
- Typical household income£55,935Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure0.0%0 of 6,420 indexed postcodes.
Room rent by outcode
Room rent varies by £58 a month across Islington’s outcodes, so the council-wide median above is a starting point rather than the answer for a particular street.
| Outcode | Median room rent | Room listings | Check a postcode |
|---|---|---|---|
| N1 | £1,108 pcm | 20 | Check N1 |
| N7 | £1,050 pcm | 391 | Check N7 |
Postcode districts in Islington
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 6,420 Islington postcodes. Open one of its postcode districts to see the verdict, the local rent evidence and the investment model.
Common questions
Do I need an HMO licence in Islington?
Mandatory HMO licensing applies across England, so a property in Islington let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Islington also runs additional HMO licensing and selective licensing, which can bring smaller HMOs, or every private rental, into licensing. A replacement selective licensing designation has already been made and is due to start. Additional HMO licensing applies across the whole council. Selective licensing covers 3 designated wards.
How much does an HMO licence cost in Islington?
£1,400 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £900 base + £100/bedroom (max £3000). Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Islington?
No HMO Article 4 direction is in force in Islington, so converting a house into a small HMO occupied by no more than six residents (use class C4) is normally permitted development and does not need planning permission on those grounds. An HMO for seven or more residents falls outside class C4 and needs permission anyway.
Which wards in Islington are covered by licensing?
Selective licensing under The London Borough of Islington Designation of an Area for Selective Licensing 2024 covers Finsbury Park, Hillrise, Tollington. A designation can cover only part of a named ward, so check the exact address rather than relying on the ward name alone.
What is the penalty for letting an unlicensed property in Islington?
Letting or managing a property that needs a licence without one is a criminal offence under the Housing Act 2004. The council can prosecute or impose a civil penalty, which for conduct on or after 1 May 2026 can be up to £40,000 per offence, raised from £30,000 by the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026. Tenants or the council can also seek a rent repayment order covering up to two years of rent for conduct from that date, up from one year, under section 103 of the Renters' Rights Act 2025. Each breach is normally penalised separately. Indicative only, not legal advice.
About Islington
Islington is a local housing authority in London, with a population of about 248,000 and 6,420 live postcodes indexed by LetLens. It is the licensing authority for every private rented property inside its boundary, and the local planning authority that decides whether an Article 4 direction applies.
Nearby councils
Licensing stops at the council boundary, so a street on the other side of it can carry a different scheme and a different fee.
Contact Islington
Islington licensing team · [email protected] · 020 7527 3205