London Property Licensing is warning private landlords and letting agents about a huge new selective licensing scheme that comes into force in Lambeth on 1 September 2025.
The decision to implement this new licensing scheme was made by the Cabinet Member for Safer Communities on 15 May 2025.
It follows a selective licensing consultation undertaken by Lambeth Council from 11 December 2023 to 4 March 2024 (read here).
On 2 September 2024, Lambeth Council implemented their first selective licensing scheme covering the council wards of Knights Hill, Streatham Common & Vale, Streatham Hill East and Streatham St. Leonards (read here).
Two months later, Lambeth Council approved plans for a second selective licensing scheme covering most of the borough. The scheme was initially delayed whilst the council sought government approval. The selective licensing rules then changed so external approval was no longer required.
To date, London Property Licensing is unaware of any press release promoting the new scheme since it was approved on 15 May 2025.
The new selective licensing scheme comes into force in three weeks time, on 1 September 2025. From that date, almost every private rented home in Lambeth will need to be licensed. The only two wards excluded from the selective licensing will be Vauxhall and Waterloo and South Bank. The scheme will include properties occupied by a single household or two unrelated shares. Houses in Multiple Occupation already need licensing under other licensing schemes.
Richard Tacagni, MD, London Property Licensing commented:
“With Lambeth Council estimating there are over 48,000 private rented homes in the borough, this expansive new selective licensing scheme will apply to tens of thousands of properties.
“To ensure compliance, a licence application should be submitted for each property by 1 September 2025. Thereafter, the longer the delay in applying, the greater the risk from civil financial penalties and rent repayment orders. The message is clear – don’t delay, act today.”
Selective licensing fees in Lambeth
Lambeth Council charges a selective licensing fee of £923 per property, payable in two instalments. There are fee discounts for accredited landlords and agents, and discounts for more energy efficient properties.
Whilst the selective licensing fee is not the highest in London, it is above the London average which currently stands at just under £800.
According to the Cabinet Member report, the licensing scheme will be cost neutral over a ten year period. This is unusual, as the maximum duration for a selective licensing scheme is five years. The council have explained they may issue a five year licence at the very end of the scheme, thereby issuing licences that will remain in force for up to five years after the scheme ends. Whether budget can be ringfenced for use after a licensing scheme has ended is unclear.
With Lambeth Council reporting a £60 million overspend last year and an estimated £18 million overspend this year (read here), the extra fee income will be welcome. However, fee income can only be reinvested in running the licensing scheme.
Whilst London Property Licensing operates a licence application handling service to assist in achieving compliance, capacity is limited for a scheme of this size. More details of the service can be found here.
Our free guide containing more information about property licensing and HMO planning restrictions in Lambeth is available here.
Sign up to our free newsletter for all the latest news.