Cabinet will consider the review of the scheme and results of consultation and decide whether to renew the designation.

Cabinet approved the following recommendations:

After considering the evidence in Appendices 1 to 4, and in accordance with Section 56 of the Housing Act 2024, to approve the making of a new five-year designation to continue borough-wide Additional HMO Licensing for all Section 254 HMOs not already subject to Mandatory HMO Licensing, to take effect upon either expiry of the current scheme on 30 August 2026 or a later date as required to comply with statutory notification requirements.

To approve the proposed scheme objectives (Appendix 5), the proposed licensing conditions which will apply to all Section 254 HMOs including those subject to mandatory licensing(Appendix 6), and the proposed fee structure (Appendix 7) with its introduction of a discount to incentivise landlords of the most energy efficient properties (A-C EPC rating).

To delegate authority to the Director of Public Protection and Licensing, in conjunction with the City Solicitor, to prepare and issue the formal designation and public notice for the renewed Additional HMO Licensing Scheme.

To delegate authority to the Director of Public Protection and Licensing to ensure full compliance with all legal and governance obligations, including the statutory three-month notice period, and to make minor amendments and modifications to the scheme during its lifetime, including adjustments to licence conditions, to ensure the effective delivery and operation of the scheme.

Reasons for Decision:

The current scheme has led to significant improvements in housing conditions and management standards across over 2,400 licensed HMOs.

This regulatory approach has enabled the Council to proactively target known risks in a high-pressure housing market, and to protect vulnerable tenants, many of whom are on low incomes or have limited housing options.

Renewal of the Additional HMO Licensing Scheme is essential to maintain and build upon the significant improvements achieved since 2021. Despite progress, evidence demonstrates that a substantial proportion of HMOs remain unlicensed and present serious safety and management risks, including Category 1 hazards under the Housing Health and Safety Rating System (HHSRS). Continuing the scheme will enable the Council to proactively regulate these properties, protect vulnerable tenants, and uphold housing standards in a high-pressure market where alternative interventions would be insufficient to address the scale and complexity of the issues identified.

The proposed renewal also comes at a pivotal time when national and local measures are converging to strengthen regulatory oversight. The introduction of a national landlords’ database through the Renters’ Rights Act, combined with Westminster’s recently introduced Selective Licensing scheme, will significantly enhance the cCouncil’s intelligence capabilities. These tools will provide improved access to landlord and property data, enabling more accurate identification of unlicensed HMOs and facilitating targeted enforcement against non-compliant operators. This integrated approach will ensure that the renewed Additional Licensing Scheme operates within a more robust framework, delivering greater efficiency and impact in tackling housing risks.