LetLens / Licensing by council / Tower Hamlets
Landlord licensing in Tower Hamlets
Mandatory HMO licensing applies across England, so a property in Tower Hamlets let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Tower Hamlets 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 Tower Hamlets 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£1,319.50 for a 5-bedroom HMO£977 base + £68/bedroom
WhereEverywhere in Tower Hamlets, as everywhere in England. Scope, fee schedule and source
- What Tower Hamlets 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£1,323, the same for an HMO of any size
WhereEverywhere in Tower Hamlets. 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£897 for a 5-bedroom rental
Where3 designated wards, not the whole of Tower Hamlets. 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
WhereInside the designated area: the whole council area. There is no part of the council outside it. 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 E14 7UJ, a postcode near the centre of Tower Hamlets, to see what a full report looks like.
Each scheme in detail, and the evidence behind it
Which properties each scheme catches in Tower Hamlets, 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£1,319.50£977 base + £68/bedroom
- Where it applies
- National scheme
- Which properties
- Houses in Multiple Occupation occupied by 5 or more persons forming 2 or more households who share basic amenities (Housing Act 2004 Part 2). Applies borough-wide.
The published fee schedule
- Base fee
- £977
- Size charge
- £68.50 per bedroom
- Application route
- £977 online, £1,147 on paper
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
Other charges
- Postal application split payment Part A: £584
- Postal application split payment Part B: £619
- Fee per habitable room (added to base fee, from room 1): £68.50
- Administration charge for missing documents: £112.50
- Preparation of floor plans (hourly charge): £40
- Housing Act 2004 notice service fee (enforcement): £884
Additional HMO licensing In force
Licence fee, any size£1,323
- Where it applies
- Council-wide
- Which properties
- All HMOs (houses and flats) not required to be licensed under mandatory HMO licensing, i.e. occupied by 3 or more persons comprising 2 or more households, irrespective of the number of storeys; includes flats in purpose-built blocks of 3+ flats and section 257 converted-building HMOs. Applies borough-wide.
- Designations in force
- Notice of Designation of Area for Additional Licensing for Houses and Flats in Multiple Occupation 2023
- Designation period
- 1 April 2024 to 31 March 2029
The published fee schedule
- Fee
- £1,323
- Application route
- £1,323 online, £1,550.50 on paper
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
Other charges
- Postal application split payment Part A: £707
- Postal application split payment Part B: £926
- Administration charge for missing documents: £157.50
Selective licensing In force
Fee, 5-bed rental£897
- Where it applies
- 3 designated wards
- Which properties
- Privately rented houses let or occupied under a tenancy or licence in the designated area (typically single-household homes, or homes let to a maximum of 2 households comprising 2 occupiers), EXCLUDING: licensable HMOs (Part 2), registered social landlord lettings, properties under a management order or temporary/statutory exemption, and properties in six excluded postcodes.
- Designations in force
- London Borough of Tower Hamlets Council Designation for an Area for Selective Licensing (2021, amended 30 June 2021)
- Designation period
- 1 October 2021 to 1 October 2026
London Borough of Tower Hamlets Council Designation for an Area for Selective Licensing (2021, amended 30 June 2021) covers Spitalfields and Banglatown (pre-22-May-2014 boundary), Weavers (pre-22-May-2014 boundary), Whitechapel (pre-22-May-2014 boundary).
The published fee schedule
- Fee
- £897
- Application route
- £897 online, £1,034 on paper
- Renewal
- £747
- Licence term
- Up to 5 years
- Fee schedule dated
- 2026/27
| Size | Fee |
|---|---|
| 1 or more | £747 |
Other charges
- New postal application split fee Part A: £465
- New postal application split fee Part B: £621
- Renewal postal application (full): £882
- Renewal postal application Part A: £405
- Renewal postal application Part B: £531
- Administration charge for missing documents: £98
Article 4 and HMO planning permission in Tower Hamlets In force
An HMO Article 4 direction is in force in Tower Hamlets covering the whole council area, so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. Every one of Tower Hamlets's 5,941 postcodes is inside a designated area.
HMO Article 4 direction, the whole council area
- Area
- the whole council area
- Right removed
- GPDO 2015 Schedule 2 Part 3 Class L - change of use from Class C3 (dwellinghouse) to Class C4 (small HMO)
- Made
- 24 July 2019
- Confirmed
- 29 January 2020
- In force from
- 1 January 2021
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 Tower Hamlets 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 Tower Hamlets multiplies the exposure rather than capping it.
The letting market in Tower Hamlets
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£973 pcmFrom 1,201 room listings in Tower Hamlets.
- Median whole-property rent£2,463 pcmFrom 382 whole-property listings.
- Typical 4-bed rent£3,599 pcmThe comparison a room-by-room let is measured against.
- HMO income premium+35%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£465,000Across 509 sales in 2026, all property types, HM Land Registry.
- Gross yield, whole let6.4%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 HMO12.6%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£57,473Mean of net small-area median incomes around the council's main listing areas, not a council-wide median.
- Postcodes with flood exposure28.4%1,686 of 5,941 indexed postcodes.
- Postcodes in Flood Zone 31,662 (28.0%)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 £50 a month across Tower Hamlets’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 |
|---|---|---|---|
| E2 | £1,000 pcm | 481 | Check E2 |
| E1 | £1,000 pcm | 45 | Check E1 |
| E3 | £953 pcm | 601 | Check E3 |
| E14 | £950 pcm | 73 | Check E14 |
Postcode districts in Tower Hamlets
Licensing, Article 4 and the fee all turn on the exact address, because a designated area rarely follows the council boundary. LetLens holds 5,941 Tower Hamlets 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 Tower Hamlets?
Mandatory HMO licensing applies across England, so a property in Tower Hamlets let to five or more people forming two or more households, who share a kitchen, bathroom or toilet, needs a licence. Tower Hamlets 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 3 designated wards.
How much does an HMO licence cost in Tower Hamlets?
£1,319.50 for a five-bedroom, five-person HMO under the mandatory scheme, from the council's published fee schedule. Fee basis: £977 base + £68/bedroom. Larger or smaller properties, and any additional or selective scheme, are priced separately.
Is there an Article 4 direction in Tower Hamlets?
An HMO Article 4 direction is in force in Tower Hamlets covering the whole council area, so the permitted-development right to convert a house (C3) into a small HMO (C4) has been removed and planning permission is needed there. Every one of Tower Hamlets's 5,941 postcodes is inside a designated area.
Which wards in Tower Hamlets are covered by licensing?
Selective licensing under London Borough of Tower Hamlets Council Designation for an Area for Selective Licensing (2021, amended 30 June 2021) covers Spitalfields and Banglatown (pre-22-May-2014 boundary), Weavers (pre-22-May-2014 boundary), Whitechapel (pre-22-May-2014 boundary). 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 Tower Hamlets?
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 Tower Hamlets?
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 Tower Hamlets.
Can I convert a house into a small HMO in Tower Hamlets 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. The direction covers the whole of Tower Hamlets, so there is no part of the council where the right still applies.
About Tower Hamlets
Tower Hamlets is a local housing authority in London, with a population of about 332,000 and 5,941 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 Tower Hamlets
Tower Hamlets licensing team · [email protected] · 020 7364 5008