Selective Licensing in Newham

Newham is still the blueprint for aggressive selective licensing: a third consecutive borough-wide scheme from 1 June 2023 to 31 May 2028, covering every privately rented home in 22 of 24 wards, layered on top of mandatory and additional HMO licensing.

Current scheme status and boundaries

• Scheme: London Borough of Newham Designation of an Area for Selective Licensing No.1 2023.
• Status: Active, third 5-year scheme, approved by the Secretary of State, runs 1 June 2023 - 31 May 2028.

Coverage: Applies to all 22 wards except Royal Victoria and Stratford Olympic Park.

Wards included: 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 and Canning Town East, Plashet, Royal Albert, Stratford, Wall End, West Ham.

If you let a single-household property anywhere in those 22 wards, it needs either a selective licence or an HMO licence.

Fees (new and renewal)

From Newham's fees page (applies to new and renewal selective licences):

Standard selective licence (single household or 2 sharers):

• Part A: GBP 400
• Part B: GBP 350
• Total: GBP 750 for up to 5 years.

Multi-dwelling selective licences (same block, same owner/manager):

• First property: GBP 750 (400 + 350).
• Second and subsequent properties: GBP 700 (Part A 350 + Part B 350).

Discounted "newly private rented property" with EPC C or better:

• Part A: GBP 250
• Part B: GBP 150
• Total: GBP 400.

HMO fees for context (not the focus of this page): mandatory HMO from GBP 1,400, additional HMO GBP 1,250.

Licence conditions and property standards

Newham's licence conditions are some of the toughest in the UK. In summary:

Property condition:

• Property must be free from serious hazards under the HHSRS.
• Working smoke alarms, CO alarms where required, up-to-date gas safety and EICR.
• Adequate heating and insulation; EPC requirements link to fee discounts.

Management:

• Licence holder must be a "fit and proper person".
• Clear arrangements for repairs, emergency contact details on display.
• Regular inspections and record-keeping.

Tenancy management:

• Written tenancy agreements.
• Proper handling of deposits and prescribed information.
• Procedures for tackling antisocial behaviour and neighbour complaints.

Failing licence conditions can lead to licence variation, revocation, civil penalties, and Rent Repayment Orders.

Penalties, prosecutions and RROs

Newham is open about using the full toolkit.

Newham states plainly: "You must have a licence for every home you rent out privately in Newham. If you do not, you could face a financial penalty of up to GBP 30,000 or an unlimited fine on prosecution."

Under the designation notice, offences can also lead to:

• Rent Repayment Orders for up to 12 months' rent (or HB/UC) to the council or the tenant.
• Entry on the rogue landlord database or a banning order in serious cases.

Concrete example: A Newham landlord with a selective licence but no additional HMO licence for a shared property received a GBP 9,880 Rent Repayment Order, representing 50% of the maximum 12 months' rent, plus GBP 300 costs. The tribunal stressed Parliament intended a "harsh and fiercely deterrent regime".

Newham also routinely names and shames offenders and has been at or near the top of the national league table for civil penalties and RROs since 2013.

Exemptions

The scheme exempts the usual categories:

• Properties already requiring a mandatory or additional HMO licence.
• Registered social landlords / housing associations.
• Properties let on long leases (more than 21 years) where the leaseholder occupies.
• Certain business tenancies and holiday lets.
• Properties let to certain close relatives in defined circumstances.

Newham directs landlords to a separate exemptions page and the public notice PDF for the full list.

How to apply

Landlords apply via Newham's online property licensing portal under "Rented property licensing".

You must apply for each property in the scheme area that is not already HMO-licensed.

You will need:

• Landlord / licence holder details and "fit and proper" declaration.
• Evidence of ownership or control.
• Tenancy agreement.
• Recent gas safety certificate, EICR, EPC.
• Card payment for Part A; Part B is payable when the licence is ready to be granted.

Newham expects applications before you let or by the date set for new schemes; operating unlicensed while "intending to apply later" is treated as an offence, not a mitigating factor.

Impact on the local market

Newham's own business cases plus external analysis show clear effects:

Improved standards: Newham claims that across its first two schemes it inspected and improved tens of thousands of PRS properties, with large numbers of Category 1 and 2 hazards removed.

Landlord behaviour: Many non-compliant landlords either upgraded properties or exited the sector; some sold to owner-occupiers, others to more professional landlords.

Rents: Industry analysis suggests licensing costs are small compared with London rent levels; Newham's rents rose broadly in line with other East London boroughs. Licensing may have contributed to slightly higher rents at the margin but the main driver remains London-wide demand and supply.

Investor response:

• Some investors avoid Newham because of its "triple-licensing" stack (selective + additional + mandatory) and strong enforcement record.
• Others specifically target Newham because licensing thins out weaker operators and rewards compliant, well-run stock with less competition.

There have been earlier legal challenges to Newham's first scheme, but the renewal for a third consecutive 5-year term was approved by the Secretary of State, and a December 2024 rule change has made it easier for councils to roll out borough-wide schemes without SoS sign-off.

Lessons for other councils

Newham shows councils that:

• Borough-wide selective licensing is politically and legally possible and can be renewed multiple times if you build a strong evidence base.
• Enforcement must be real: civil penalties, RROs and public naming are what give the scheme teeth and change landlord behaviour.
• Stacked licensing (mandatory + additional + selective) can work, but you must be clear about overlaps and exemptions to avoid confusion.
• Fee structures can drive behaviour: discounts for accredited landlords and EPC C+ properties nudge quality up as well as funding enforcement.

For landlords, the lesson is simpler: if Newham can do this, your council probably can too now that central sign-off rules have loosened.

What Newham landlord forums get wrong

Myth 1: "Newham's selective scheme ended; it was just the original 2013 thing."

Reality: Newham is now on its third consecutive 5-year selective scheme, running from 1 June 2023 to 31 May 2028, covering 22 of 24 wards.

Myth 2: "Selective licensing is borough-wide including the Olympic Park."

Reality: The scheme excludes Royal Victoria and Stratford Olympic Park; every other ward is in scope.

Myth 3: "Once I have a selective licence, I am covered for everything."

Reality: If the property is actually an HMO, you may also need an additional or mandatory HMO licence. One Newham landlord with a selective licence but no additional HMO licence received a GBP 9,880 Rent Repayment Order.

Myth 4: "The council never enforces; this is just a tax."

Reality: Newham has been at the front of RROs and civil penalties since 2013, openly states it will fine up to GBP 30,000, pursue RROs for up to 12 months' rent, and put landlords on the rogue landlord database or seek banning orders.

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