What Westminster landlords need to check before 31 August 2026
If you let a property in Westminster to several people, the way those occupiers are grouped can determine whether the property needs a House in Multiple Occupation (HMO) licence.
This is particularly timely because Westminster City Council’s renewed Additional HMO Licensing Scheme comes into force on 31 August 2026. It will apply across the whole City of Westminster for five years.
The headline is important, but the first question is not simply how many bedrooms your property has. You need to look at how many people live there, how many households they form, what facilities they share and what type of building the property occupies.
If you already hold a valid HMO licence, you will not necessarily need a new one on 31 August. Existing licences remain valid until their stated expiry date. If you do not have a licence, or yours has expired, now is the time to check the position rather than assume the property falls outside the scheme.
First, What Is an HMO?
In straightforward terms, a property is generally an HMO when three or more people from two or more households live there as their main home and share facilities such as a kitchen or bathroom.
A household is not the same as an individual person. A married or cohabiting couple forms one household, as does a family living together. Unrelated people usually form separate households.
- Three unrelated professionals: three people and three households.
- A couple and one unrelated professional: three people and two households.
- Two unrelated professionals: two people and two households, so the usual three-person HMO threshold is not reached.
A resident landlord can also create an HMO arrangement where three or more paying lodgers live in the property. Whether a licence is required therefore depends on the actual occupation, not simply on whether the agreement describes the occupiers as tenants, sharers or lodgers.
Whether a property is an HMO depends on who occupies it and how they live, not simply on whether it is described as a house or a flat.
What Happens on 31 August 2026?
Westminster’s renewed Additional HMO Licensing Scheme begins on 31 August 2026 and covers the whole borough. It applies to many shared houses and flats occupied by three or more people from two or more households where the property is not already covered by mandatory HMO licensing.
According to the council’s published guidance, licences granted under the previous additional licensing scheme remain valid until their expiry date, unless they are varied or revoked. Renewal applications can be submitted up to three months before expiry.
If your licence has already expired, do not wait for a reminder. A lapsed renewal is treated as a new application and a new licence fee is charged. There is no automatic grace period simply because the property was licensed before.
A Temporary Exemption Notice may be available in limited circumstances where you are taking clear steps to make sure the property will no longer need a licence, normally within three months. It is not an alternative to licensing an HMO that you intend to continue operating.
Three Licensing Schemes, One Property
Westminster operates three property-licensing routes. Together, the number of occupiers, the households they form, the facilities they share and the type and location of the property determine which scheme applies.
- Mandatory HMO licensing: this normally applies where five or more people from two or more households share facilities. National exclusions apply to some purpose-built flats.
- Additional HMO licensing: this generally captures HMOs occupied by three or more people from two or more households that are not covered by the mandatory scheme. Westminster’s renewed scheme applies borough-wide.
- Selective licensing: this applies to certain privately rented properties that are not HMOs within 15 designated Westminster wards. The selective scheme began on 24 November 2025.
A property will not normally need both an HMO licence and a selective licence at the same time. The purpose of checking the occupation carefully is to establish which route applies, rather than trying to collect every possible licence.
Does an HMO Licence Provide Every Permission You Need?
No. A property licence confirms that the council has considered the property and its management under the relevant housing-licensing scheme. It does not override other restrictions.
Before creating or continuing an HMO, you should also check:
- Planning: the proposed use may require planning permission, depending on the property, its existing use and local planning controls.
- Your lease or title: a lease, freeholder consent provision or restrictive covenant may limit sharing, subletting or business use.
- Your mortgage: residential, buy-to-let and specialist HMO lending have different conditions.
- Your insurance: the policy must reflect the actual occupation and management of the property.
A licence therefore answers one important question, not every question. A permitted use under one set of rules can still be restricted under another.
Does a Purpose-Built Flat Need a Licence?
Potentially, yes. The national mandatory HMO scheme does not generally apply to a purpose-built flat situated in a block containing three or more self-contained flats. However, that does not automatically remove the property from Westminster’s additional licensing requirements.
If three or more people from two or more households occupy the flat and share facilities, an additional HMO licence may still be required. Converted flats can raise further questions depending on the building’s layout and conversion history.
This is why the appearance of the building is not enough. A flat in a modern block, a mansion block or a converted period house can each require a licence if the occupation falls within the relevant scheme.
What About W2, W9 and NW8?
W2, W9 and NW8 are Wendy Obuli Property’s core areas of coverage, but a postcode alone does not identify the licensing authority. Each of these postcode districts crosses, or sits close to, more than one borough boundary.
If the property address falls within the City of Westminster, Westminster’s schemes and guidance apply. If it falls within Brent, Camden, Kensington and Chelsea or another neighbouring authority, you must check that council’s rules instead.
The safest starting point is therefore the full property address, followed by the way the home is occupied.
Who Should Apply?
According to the council’s published HMO guidance, the most appropriate licence holder is normally the person who has control of the property and receives the rent. They must be able to ensure that the licence conditions are met, access the property and make decisions about the tenancy and management.
An owner can appoint a managing agent to apply or hold the licence where that arrangement is appropriate and the agent has sufficient authority. However, instructing an agent to market the property, find tenants or carry out periodic inspections does not automatically transfer the licensing responsibility.
If Wendy Obuli Property introduces a landlord to the iAD lettings route, iAD’s central team can support the tenancy process while WOP markets the property and carries out the agreed local inspections. Unless a separate management arrangement expressly says otherwise and is accepted by the council, the landlord remains responsible for making sure the correct licence is in place.
Before instructing any agent, ask who will apply, who will be named as licence holder, who will pay the fees and who will monitor renewal dates. The answer should be recorded clearly rather than left to assumption.
What Does an Application Involve?
A valid application requires more than the property address. You should expect to provide information about the owner, proposed licence holder and manager; the occupants and households; the rooms, amenities and layout; and the property’s fire and safety arrangements. Supporting documents may include plans, gas and electrical safety information and management details.
The council also considers whether the proposed licence holder and manager are fit and proper persons, whether the property is suitable for the proposed number of occupiers and whether the management arrangements are satisfactory.
At the time of writing, Westminster’s standard HMO licence fee is £1,540, divided into Part A of £855 when the application is submitted and Part B of £685 before the licence is issued. Larger HMOs can attract additional charges, so check the current fee page before applying.
According to the council’s website, it aims to process a valid application within three months. A valid application may allow the property to continue operating while it is considered, but it does not mean the licence has already been granted. Tacit consent does not apply, and the property must continue to meet all other legal requirements during the application period.
How Can You Check Your Property?
Start with the people who actually live at the address, not just the names on an old tenancy agreement.
- Count the current occupiers.
- Identify how many households they form.
- Check which kitchen, bathroom or toilet facilities they share.
- Confirm the property type and whether it sits in a purpose-built or converted building.
- Use the full address to identify the correct local authority.
- Check the relevant licensing register and guidance.
Links to Westminster’s HMO pages, application guidance and licensing information are provided at the end of this resource, so you can finish reading before checking the property.
If the position is still unclear, contact Westminster’s HMO Licensing Team on 020 7641 6161, Monday to Friday from 9am to 5pm, or email HMO@westminster.gov.uk.
What If Your Tenants Change?
A property’s licensing position can change even when the building itself does not.
For example, replacing two joint tenants with three unrelated professionals can create an HMO. A couple and one unrelated professional also form two households and reach the three-person threshold. Reducing three professional sharers to two may have the opposite effect, while a couple living alone forms one household.
Do not assume that an existing licence can simply be ignored if the occupation reduces. Notify the council and ask whether the licence should be varied or revoked. Equally, if the number of occupiers increases, check the permitted occupancy and licence conditions before anyone moves in.
Regular inspections and clear communication with tenants help you identify unauthorised occupiers, subletting or changes in household composition before they become a larger compliance problem.
Why Does the Licence Matter?
Operating a licensable HMO without the required licence is a criminal offence. According to the council’s published guidance, enforcement action can include prosecution or a civil financial penalty. Tenants may also be able to pursue a Rent Repayment Order in appropriate circumstances.
The licence is not merely an administrative form. It links the permitted number of occupiers to the property’s amenities, safety arrangements and management. Conditions can cover matters such as fire precautions, waste, room sizes and how the property is managed.
Licensing also protects a landlord’s wider position. Discovering a missing licence during a complaint, refinancing exercise or proposed sale is likely to be more disruptive and expensive than checking before the occupation begins.
What If You Are Considering Short Stays?
Moving from a residential letting to short stays is not a simple way around HMO licensing. Short-stay guests do not usually occupy the property as their main home, so the HMO test may be different, but a separate set of planning, lease, mortgage, insurance and management considerations applies.
According to Westminster’s short-term letting guidance, freeholders, leaseholders and tenants with the necessary permission can generally use a home for short-term letting for up to 90 nights in a calendar year without planning permission, unless it is council-leased property. Letting beyond that limit requires planning permission, and the property must not cause excessive disruption to neighbours.
If a residential tenancy is already in place, you cannot simply switch the property to short stays. The tenancy must be brought to an end lawfully and the property’s permissions and practical suitability checked before a different model begins.
Wendy Obuli Property can help you consider the available routes, with residential lettings supported through iAD and short stays introduced to a specialist management partner where appropriate. The decision should begin with what the property is permitted and realistically able to do.
A Final Thought
HMO licensing can appear complicated because several questions sit behind one address. However, the order in which you consider them is simple: where is the property, who lives there, how many households do they form, what do they share and what type of building is it?
Once those facts are clear, the correct licensing route becomes much easier to identify. If the property falls within Westminster and the occupation reaches the HMO threshold, check the council’s guidance before 31 August 2026 rather than waiting for the licence to expire or for the council to make contact.
If you are deciding whether to let your property on a residential basis, explore short stays or review an existing arrangement, Wendy Obuli Property can help you think through the practical route and introduce the relevant service.
Useful Links
- Westminster City Council: Additional licensing scheme renewal →
- Westminster City Council: Houses in Multiple Occupation →
- Apply for and manage HMO licences →
- Westminster HMO licensing FAQs →
- Westminster HMO licence fees and guidance →
- Westminster selective property licensing →
- Westminster planning and permitted development guidance →
- Westminster short-term letting guidance →
- GOV.UK: Houses in Multiple Occupation →
Related WOP Guidance
Important Information
This resource is intended as general information and does not constitute legal, financial, tax, mortgage, planning or investment advice. Licensing requirements depend on the property, its location and occupation. Check the current position with the relevant local authority and suitably qualified advisers before making a decision.
Information and links checked on 26 August 2026.