Property Licence

Newham licensing / Selective licensing

Selective licensing in Newham

Active in Newham

Selective licensing applies to most private rented homes inside a designated area. Newham has at least one active selective scheme. The detail below is built from the council's own pages.

What selective licensing actually means

A council can designate any part of its area for selective licensing under Part 3 of the Housing Act 2004. Inside the designated area, almost every privately rented home needs a licence, whether the property is a single-family let, a small flat, or a house shared by a couple.

Selective licensing is not about HMOs. The rule keys off the fact that the home is privately rented, not how many people live in it or how many households share it.

Renting out without a licence inside a designated area is a criminal offence. Councils can apply a civil penalty of up to £40,000 per offence, and tenants can apply for a rent repayment order of up to 12 months of rent.

Check an address against the scheme

Enter the postcode and pick the address. We check the selected street against the council's published scheme area and tell you whether the licence applies.

Newham selective licensing schemes

Newham selective licensing 2023 to 2028

Selective licensing · active · Listed wards

Coverage
Listed wards
Runs
1 Jun 2023 to 31 May 2028
Term
5 years
Fee per property
£750

Newham selective licensing applies across Newham except Royal Victoria and Stratford Olympic Park.

The scheme covers 21 named wards. Two streets on either side of a ward boundary can end up with different answers, so checking the ward of the property matters more than the postcode.

Paid in two parts: £400 on application (Part A) and £350 on grant (Part B), for a total of £750 for up to a five-year licence.

Properties exempt from this scheme

  • Buildings controlled or managed by a Local Housing Authority
  • Buildings controlled or managed by Police
  • Buildings controlled or managed by fire brigade
  • Buildings controlled or managed by Health Service Body
  • Certain University/College accommodation occupied by students
  • Where the owner or his relatives occupy a property on a long leasehold
  • Where landlord lets to certain relatives
  • Holiday Homes
  • Where landlord/licensor or his relative lives at the property and shares facilities with a maximum of two lodgers
  • Temporary Exemption Notices can provide a temporary exemption from the need to licence a property for up to three months

Discounts the council offers

  • £50 discount for a licence holder who is a member of a recognised accredited landlord association
  • £50 discount for an accredited licence holder applying for a property with an EPC rating of C or higher
  • Newly private rented property discount: £400 total for a selective licence where the property has not previously been lived in by PRS tenants and has an EPC rating of C or higher
  • LB Newham Nightly Paid Temporary Accommodation discount: £400 total for an approved selective licence property
  • Multi-dwelling selective licence discount: £700 total from the second property onwards where eligibility conditions are met

A landlord who qualifies for the strongest energy and accreditation discounts on this scheme pays around £50 instead of the headline £750 fee, a saving of £700.

Wards covered

Beckton, Boleyn, Canning Town North, Canning Town South, Custom House, East Ham, East Ham South, Forest Gate North, Forest Gate South, Green Street East, Green Street West, Little Ilford, Manor Park, Maryland, Plaistow North, Plaistow South, Plaistow West & Canning Town East, Plashet, Royal Albert, Stratford, Wall End & West Ham.

Who needs a selective licence

If the property is inside the scheme area and rented out under most types of tenancy, the landlord usually needs a licence. That includes a couple renting a flat, a single tenant renting a whole house, and a family renting a terrace.

A selective licence does not normally apply to social housing, holiday lets, properties under the Housing Act 1985 Part 7, or homes already licensed as HMOs. The council's notice of designation lists the exact exemptions, and they vary scheme to scheme.

Whoever is in control of the property is responsible for the licence. That is normally the freeholder for a house, or the leaseholder for a flat. A managing agent can hold the licence with the landlord's written agreement.

Selective licensing and HMO licensing in Newham

Selective licensing and HMO licensing are different rules. A property only needs one licence at a time. If the property meets the test for a mandatory HMO (five or more people in two or more households) or for an additional HMO licence the council runs, that takes precedence and the property does not also need a selective licence.

Newham also runs an additional HMO licensing scheme. A small house share that does not meet the mandatory threshold can still be caught by that scheme, again replacing the need for a selective licence at the same address.

The practical effect: check the HMO rules first. If the property is an HMO under either definition, apply for the HMO licence. If it is a single-household let inside a designated selective area, apply for the selective licence instead.

How to apply

Applications go through the council. Most have an online form that takes the property address, the landlord and agent details, gas and electrical safety certificates, an Energy Performance Certificate, and proof of right to manage. Councils ask for the fee up front, usually split between a non-refundable application fee and a grant fee paid when the licence is issued.

A licence usually runs for five years. If the council renews the designation, every existing licence has to be re-applied for. Fees and conditions can change between renewals.

A licence is tied to the named landlord and the named property. Sell the property, change the manager, or move out and the licence does not transfer. The council needs a new application.

What happens if you do not licence

Renting out an unlicensed property in a designated area is a criminal offence under section 95 of the Housing Act 2004. Councils can prosecute, or apply a civil penalty of up to £40,000 instead under section 249A. The decision is the council's, and a civil penalty does not need a court case.

A tenant can apply for a rent repayment order for up to 12 months of rent already paid. Universal Credit and housing benefit paid for the same period can also be reclaimed by the council under section 41 of the Housing and Planning Act 2016. Two separate offences in 12 months can trigger a banning order, which removes the landlord from the rental market entirely.

A landlord who has not applied for a licence cannot serve a valid section 21 no-fault eviction notice. The block lasts until the licence is in place. A tenancy started inside the scheme area without a licence remains valid; only the eviction route is closed.

Talk to Newham directly

Anything on this page that you cannot find an answer to, the council's licensing team can confirm in minutes.

Mortgage and insurance implications

A buy-to-let mortgage usually requires the landlord to hold any licence the council demands. Lenders ask for the licence reference at the point of letting and again at renewal. Letting an unlicensed property in a designated area can technically breach the mortgage terms, and lenders have called in loans on that basis.

Landlord insurance is similar. Insurers normally require any licensable property to actually be licensed, and a civil penalty or rent repayment order can void cover for related claims. Disclose the licence status on renewal.

Buyers of let properties in Newham should ask the seller for the licence reference and the conditions attached to it. The licence ends on sale, but the conditions tell the buyer what improvements the council has already required.