Additional HMO licensing in Merton
Yes. Merton operates an additional HMO licensing scheme. Letting a covered property without a licence risks a civil penalty of up to £30,000, a rent repayment order of up to twelve months' rent, and the loss of the right to serve a section 21 notice.
What the designation says
The London Borough of Merton operates an additional HMO licensing scheme covering seven wards. The scheme was approved by Cabinet on 19 June 2023, came into force on 24 September 2023, and runs for 5 years until 23 September 2028. Applies to all HMOs not covered by mandatory licensing in Figge's Marsh, Graveney, Longthornton, Pollards Hill, Colliers Wood, Cricket Green, and Lavender Fields wards. The scheme includes section 257 HMOs (converted blocks of flats where less than two thirds are owner-occupied and the conversion did not comply with relevant Building Regulations). Approximately 700-1,000+ unlicensed HMOs estimated in the area. Licence fee starts at £1,450 for a two-bedroom property. Article 4 Direction also applies in these seven wards (since 17 November 2022, made permanent April 2023) requiring planning permission for C3 to C4 conversions.
What this means for a landlord
A licence must be in place before the property is let, not applied for afterwards. Operating unlicensed in a designated area is a criminal offence: a civil penalty of up to £30,000 per offence, a rent repayment order of up to twelve months' rent, and a section 21 notice that cannot be served while the property is unlicensed. Mandatory HMO licensing applies separately and everywhere, wherever a property is let to five or more people forming two or more households.
Information tool, not legal advice. Confirm the position with Merton before letting.