Tower Hamlets HMO Licensing Explained: What Landlords Need to Know

HMO Licensing in Tower Hamlets: A Comprehensive Guide for 2025

The London Borough of Tower Hamlets enforces strict Houses in Multiple Occupation (HMO) licensing requirements to ensure safe, well-maintained housing for tenants. In addition to Mandatory Licensing, the borough operates a borough-wide Additional Licensing Scheme that covers smaller HMOs not included in the mandatory scheme.

This guide explains the key requirements for HMO landlords in Tower Hamlets, including how to apply for a license and avoid penalties.

Understanding HMO Licensing

What is an HMO?
An HMO is a property rented to three or more individuals forming two or more households, who share facilities like kitchens or bathrooms.

• Mandatory Licensing applies to HMOs with five or more occupants from two or more households.
• Additional Licensing covers smaller HMOs, including properties with three or more occupants that do not meet mandatory licensing criteria.

Tower Hamlets HMO Licensing Schemes

1. Mandatory Licensing

   • Required for all HMOs with five or more people forming two or more households.
   • Covers properties with shared facilities like bathrooms, toilets, or kitchens.

2. Additional Licensing Scheme

   • Borough-Wide Expansion (Effective April 1, 2024): Tower Hamlets expanded the Additional Licensing Scheme to cover all HMOs across the borough.
   • Includes smaller HMOs with three or more people forming multiple households.
   • Covers Section 257 HMOs: Buildings converted into self-contained flats that do not comply with the 1991 Building Regulations, where at least one-third of the flats are privately rented.

How to Apply for an HMO License

1. Determine the Appropriate License

   • Check whether your property falls under mandatory or additional licensing based on size and occupancy.

2. Complete the Application

   • Submit the application through Tower Hamlets’ HMO Licensing Portal.
   • Provide required details about the property, management arrangements, and occupancy.

3. Submit Supporting Documents

   • Gas Safety Certificate.
   • Electrical Installation Condition Report (EICR).
   • Floor plans showing room sizes and layouts.

4. Pay Licensing Fees

   • Licensing fees vary depending on the property type and size. Discounts may be available for accredited landlords or early applications.

5. Pass Inspections

   • The council will inspect the property to ensure it meets safety and housing standards before granting a license.

Compliance Requirements

To maintain compliance, landlords must:

• Ensure Room Sizes Meet Standards:

  • Minimum of 6.51 square meters for one adult and 10.22 square meters for two adults sharing.

• Implement Fire Safety Measures:

  • Install smoke alarms, fire doors, and maintain clear escape routes.

• Provide Safe Utilities:

  • Annual gas safety checks and a valid EICR.

• Maintain the Property:

  • Ensure facilities such as kitchens, bathrooms, and waste disposal systems are in good condition.

Penalties for Non-Compliance

Landlords operating unlicensed HMOs or failing to meet licensing conditions face:

• Fines of up to £30,000.
• Rent Repayment Orders: Up to 12 months’ rent may be refunded to tenants.
• Eviction Restrictions: Inability to serve Section 21 eviction notices until the property is licensed.

How Fraser Bond Can Help

Navigating HMO licensing requirements in Tower Hamlets can be complex, but Fraser Bond is here to assist:

• License Application Support: Ensure your applications are complete, accurate, and timely.
• Compliance Audits: Evaluate your property for potential issues and recommend improvements.
• Ongoing Management Services: Maintain compliance with licensing conditions, from inspections to tenant relations.

Contact Fraser Bond today for professional guidance and property management services tailored to your needs.