Westminster City Council's Cabinet has approved a five-year extension to its additional licensing scheme for Houses in Multiple Occupation (HMOs), a decision aimed at improving property conditions, fire safety, and landlord accountability across the borough.
The scheme, which was due to expire on 30 August 2026, will now continue until 30 August 2031. This renewal follows an extensive public consultation and evidence review, which indicated that many HMOs continue to pose significant safety, health, and management risks.
Evidence presented to the Cabinet highlighted that an estimated 1,748 unlicensed HMOs are still operating in Westminster. These properties are more likely to be poorly managed or overcrowded, and non-compliant with safety requirements such as missing fire alarms or fire doors. They are also linked to persistent anti-social behaviour complaints and are unaccountable to regulatory oversight. Furthermore, 33% of the total HMO stock (including unlicensed properties) may contain serious housing hazards, such as fire risks, excess cold, and structural defects, compared with a national average of 10% in the private-rented sector.
The licensing scheme will cover HMOs not subject to mandatory licensing, including smaller HMOs and flats in purpose-built blocks. The Cabinet also approved proposed scheme objectives, licence conditions, and a fee structure. These conditions will apply to all Section 254 HMOs, including those subject to mandatory licensing, and cover areas such as permitted occupation, standard of accommodation, tenancy management, property management, and fire safety measures. The council has already carried out significant inspections, with 1,026 pre-licence inspections completed and 600 physical compliance visits and 399 desktop compliance assessments conducted.
Councillor Ellie Ormsby, Cabinet Member for Regeneration and Renters, stated that significant progress has been made in raising the standard and management of HMOs for our additional licensing scheme.
She added that evidence gathered for our work shows there are still significant challenges within this part of the housing market. Licensing provides council with oversight powers needed to address these issues and ensure landlords meet their responsibilities.
The decision to renew the scheme was made during a Cabinet meeting on Monday, 16 March 2026. The renewal aims to build upon the improvements achieved since the scheme's introduction in 2021, which has seen over 1,000 HMOs improved and nearly 100 financial penalties issued for non-compliance. In total, 90 financial penalties have been issued for failures to license or comply with licence conditions. Non-compliance may result in civil penalties up to £40,000 (previously £30,000), rent repayment orders, or prosecution. The scheme also aims to proactively identify and take action against unlicensed HMOs and hold landlords and agents accountable.
A discount is offered for properties with a good EPC rating (A–C). Specifically, properties with an EPC rating of C receive a 10% discount off Part B of the licence fee, and properties with an EPC rating of B or above receive a 20% discount off Part B of the licence fee. The expected impact is to encourage landlords to adopt energy-saving measures and ensure that HMOs meet at least the minimum EPC rating required under current legislation. Properties with higher energy efficiency standards are typically of better overall quality and less likely to present common hazards such as excess cold and damp, thus requiring less enforcement activity and allowing resources to be focused on higher-risk properties.
The proposed licence fee has been calculated through a time and motion study and covers staff costs, IT systems, back-office support, and communications. Fees are set to recover the full cost of operating the licensing schemes and delivering their stated objectives.
Over 1,000 properties have been improved to an acceptable standard following council intervention. To ensure these improvements are maintained, the renewal of the Additional HMO Licensing Scheme includes proposed licence conditions that will apply to all Section 254 HMOs. The scheme aims to enhance enforcement, target unlicensed HMOs, and work proactively to reduce repeat anti-social behaviour. Landlords are held accountable for property standards, fire safety, overcrowding, and management practices, with the scheme strengthening management accountability by requiring licence holders to demonstrate fit-and-proper status and robust management arrangements.
Cabinet Report and Decisions 16th-Mar-2026 18.30 Cabinet documents provide further details on the scheme.
