LetLens / Licensing by council / Southwark
Landlord licensing in Southwark
Mandatory HMO licensing applies across England, so a property in Southwark let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Southwark also runs additional HMO licensing and selective licensing, which can bring smaller HMOs, or every private rental, into licensing.
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 a Southwark 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£1,653.50 for a 5-bedroom HMOband 1-5 units
WhereEverywhere in Southwark, as everywhere in England. Scope, fee schedule and source
- What Southwark 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£1,433, the same for an HMO of any size
WhereEverywhere in Southwark. 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£945, the same for a rental of any size
Where19 designated wards, not the whole of Southwark. 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 In force in part of the council (0.1%)
WhereInside the designated area: a mapped boundary. Outside it the right still applies. 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 SE5 0JE, a postcode near the centre of Southwark, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Southwark, 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£1,653.50band 1-5 units
- Where it applies
- National scheme
- Which properties
- Large HMO: at least 5 tenants forming more than 1 household, sharing a toilet, bathroom or kitchen; plus section 257 converted blocks that do not meet the 1991 Building Regulations conversion standard
The published fee schedule
- Size charge
- £110 per unit above 5
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
| Size | Fee | Part 1 + part 2 |
|---|---|---|
| 1 to 5 | £1,653.50 | £1,157.50 + £496 |
Discounts
- Gold Standard Charter landlords: 50% off part B (part B waived if also signed up to the finders' fee scheme): £0
- Registered charities housing below-market-rent / vulnerable groups: 50% off part A and part B: £0
Other charges, all 12
- mandatory - part A per letting above 5 (from 1 April 2026): £77
- mandatory - part B per letting above 5 (from 1 April 2026): £33
- mandatory - part A first 5 lettings, previous schedule to 31 March 2026: £1,102.50
- mandatory - part B first 5 lettings, previous schedule to 31 March 2026: £472.50
- mandatory - total first 5 lettings, previous schedule to 31 March 2026: £1,575
- mandatory - part A per letting above 5, previous schedule to 31 March 2026: £73.50
- mandatory - part B per letting above 5, previous schedule to 31 March 2026: £31.50
- mandatory - total per letting above 5, previous schedule to 31 March 2026: £105
- invoice charge if paying by invoice (from 1 April 2026): £60.50
- invoice charge if paying by invoice, previous schedule to 31 March 2026: £57.80
- paper application surcharge (from 1 April 2026), plus invoice fee where applicable: £179.70
- paper application surcharge, previous schedule to 31 March 2026: £171.20
Additional HMO licensing In force
Licence fee, any size£1,433
- Where it applies
- Council-wide
- Which properties
- All HMOs (section 254) occupied by 3 or more persons comprising 2 or more households sharing one or more basic amenities and not required to be licensed as a mandatory HMO; also section 257 converted blocks of flats (3+ storeys, 3+ self-contained flats, non-compliant 1991 Building Regulations conversion, same ownership/control)
- Designations in force
- The London Borough of Southwark Designation of an Area for Additional Licensing of Houses in Multiple Occupation 2022
- Designation period
- 1 March 2022 to 1 March 2027
The published fee schedule
- Fee
- £1,433
- Paid in two parts
- £1,017.50 on application, then £415.50 when the licence is granted
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
Discounts
- Gold Standard Charter landlords: 50% off part B (part B waived if also signed up to the finders' fee scheme): £0
- Registered charities housing below-market-rent / vulnerable groups: 50% off part A and part B: £0
Other charges
- additional - part A, previous schedule to 31 March 2026: £969.20
- additional - part B, previous schedule to 31 March 2026: £395.90
- additional - total, previous schedule to 31 March 2026: £1,365.10
Selective licensing In force
Licence fee, any size£945
- Where it applies
- 19 designated wards
- Which properties
- All privately rented residential accommodation in the designated wards, unless required to be licensed as a mandatory or additional HMO or otherwise statutorily exempt
- Designations in force
- London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 1
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 2
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 3
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 4 - Designation period
- 1 March 2022 to 1 March 2027
1 March 2022 to 1 March 2027
1 November 2023 to 31 October 2028
1 November 2023 to 31 October 2028
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 1 covers Champion Hill, Newington.
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 2 covers Faraday, Goose Green, St Giles.
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 3 covers North Walworth, Nunhead & Queen's Road, Old Kent Road, Peckham.
London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 4 covers Camberwell Green, Chaucer, Dulwich Hill, Dulwich Wood, London Bridge & West Bermondsey, Peckham Rye, Rotherhithe, Rye Lane, South Bermondsey, Surrey Docks.
The published fee schedule
- Fee
- £945
- Paid in two parts
- £661.50 on application, then £283.50 when the licence is granted
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
Discounts
- Gold Standard Charter landlords: 50% off part B (part B waived if also signed up to the finders' fee scheme): £0
- Registered charities housing below-market-rent / vulnerable groups: 50% off part A and part B: £0
Article 4 and HMO planning permission in Southwark In force in part of the council (0.1%)
2 HMO Article 4 directions are in force in Southwark covering 2 separate areas of the council, so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. We hold 4 of Southwark's 7,237 postcodes inside a designated area, about 0.1% of the council. Most of the council is outside it, so the right still applies to the majority of addresses here.
HMO Article 4 direction, a mapped boundary
- Area
- a mapped boundary
- Right removed
- C3 to C4 (small HMO)
- Made
- 17 October 2013
- In force from
- 17 October 2014
HMO Article 4 direction, a mapped boundary
- Area
- a mapped boundary
- Right removed
- C3 to C4 (small HMO)
- Made
- 27 October 2016
- Confirmed
- 1 January 2017
- In force from
- 27 October 2016
A licence is not planning permission
These are two separate consents from two separate parts of the council, and getting one does not give you the other. A licensing team can grant an HMO licence for a property that needed planning permission and never got it.
Where the permission was needed and is missing, the usual consequence lands on the licence. Councils commonly grant a short licence, often twelve months rather than the full term, to give the owner time to apply. If permission is not applied for, is refused, or an appeal fails, the council will generally refuse to extend and let the licence expire, and will generally refuse a fresh application outright once permission has been finally refused. At that point the property cannot lawfully be let as an HMO at all.
This is council practice rather than a statutory rule, and it varies, so confirm it with Southwark before you rely on it. Nottingham City Council publishes its version explicitly and is quoted here as a worked example of the approach.
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 Southwark multiplies the exposure rather than capping it.
The letting market in Southwark
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£1,061 pcmFrom 1,245 room listings in Southwark.
- Median whole-property rent£2,718 pcmFrom 301 whole-property listings.
- Typical 4-bed rent£4,024 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+32%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£500,000Across 535 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let6.5%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 HMO12.7%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£52,137Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure68.7%4,970 of 7,237 indexed postcodes.
- Postcodes in Flood Zone 34,688 (64.8%)The Environment Agency's highest-probability zone. Lenders and insurers ask about this one by name, and it is a subset of the exposure above.
Room rent by outcode
Room rent varies by £297 a month across Southwark’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 |
|---|---|---|---|
| SE1 | £1,197 pcm | 516 | Check SE1 |
| SE16 | £1,009 pcm | 428 | Check SE16 |
| SE5 | £900 pcm | 271 | Check SE5 |
Postcode districts in Southwark
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 7,237 Southwark 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 Southwark?
Mandatory HMO licensing applies across England, so a property in Southwark let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Southwark also runs additional HMO licensing and selective licensing, which can bring smaller HMOs, or every private rental, into licensing. Additional HMO licensing applies across the whole council. Selective licensing covers 19 designated wards.
How much does an HMO licence cost in Southwark?
£1,653.50 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: band 1-5 units. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Southwark?
2 HMO Article 4 directions are in force in Southwark covering 2 separate areas of the council, so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. We hold 4 of Southwark's 7,237 postcodes inside a designated area, about 0.1% of the council. Most of the council is outside it, so the right still applies to the majority of addresses here.
Which wards in Southwark are covered by licensing?
Selective licensing under London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 1 covers Champion Hill, Newington. Selective licensing under London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 2 covers Faraday, Goose Green, St Giles. Selective licensing under London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 3 covers North Walworth, Nunhead & Queen's Road, Old Kent Road, Peckham. Selective licensing under London Borough of Southwark Designation for an Area for Selective Licensing 2022 - Designation 4 covers Camberwell Green, Chaucer, Dulwich Hill, Dulwich Wood, London Bridge & West Bermondsey, Peckham Rye, Rotherhithe, Rye Lane, South Bermondsey, Surrey Docks. 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 Southwark?
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.
Do I need planning permission for an HMO in Southwark?
Where an Article 4 direction applies, yes: it removes the permitted-development right to change a house (use class C3) into a small HMO (use class C4), so that change needs a planning application. An HMO for seven or more residents needs permission anywhere, Article 4 or not. Planning is separate from licensing, and a licence does not give you permission. Where permission was needed and not obtained, councils commonly grant a licence for about twelve months rather than the full term, and generally refuse to extend it if permission is not then granted, which leaves the property unable to be let as an HMO. Practice varies by council, so confirm it with Southwark.
Can I convert a house into a small HMO in Southwark without planning permission?
Not inside the Article 4 area. The direction removes the permitted-development right, so a change of use from C3 to C4 needs a planning application. Outside the designated area the right still applies. Check the exact address against the boundary before you commit.
About Southwark
Southwark is a local housing authority in London, with a population of about 320,000 and 7,237 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 Southwark
Southwark licensing team · [email protected] · 020 7525 3114