London is one of the top locations in the world for investing in homes. They can be excellent assets, able to deliver an impressive yield and ROI. However, there are lots of things to think about. Investors with assets in Hackney, and anyone considering buying properties here, should be aware of a big change next year. We want to have a closer look so you know what to expect. Then, if you need help like guaranteed rent and estate management in Hackney, we have the ideal services for you.
What’s changing?
Starting in May 2026, private landlords with properties in the majority of Hackney will need a license. It will be an additional cost to think about.
Firstly, the new licensing will cover every HMO with 3+ residents in two or more households. It is an expansion of the current national mandatory licensing for larger HMOs. So, from May 2026 landlords will need to pay £1,400 for a licence for each smaller HMO they own anywhere in Hackney.
Secondly, there will be new selective and additional licensing for private rental homes. The first covers properties in 17 wards, with the latter covering the final 4. So, homes will require a license regardless of how many tenants/households there are. Licenses here will cost £925 per property.
Why is Hackney Council introducing licensing?
The Council chose to introduce licensing to improve standards in the private rental sector (PRS). Crucially, they want to tackle rogue landlords who leave people living in unsafe, poor quality homes. Ask us about reliable estate management in Hackney and other services.
One of the problems with the PRS in Hackney is it’s so big, close to a third of all homes in the borough. While the Council admits there are good landlords, sadly there are also problems. In fact, they claim 30% of HMOs and a significant number of homes have at least one serious hazard. It puts tenants at risk and also leads to other issues in neighbourhoods, such as anti-social behaviour.
The licensing aims to improve quality in the PRS and protect tenants. Critically, it introduces minimum standards for properties. Landlords will fail to even get a licence if there are issues with properties. Additionally, they will need to ensure they manage and maintain homes effectively or face penalties. The Council will have more resources to investigate and respond to issues.
Both the Mayor of Hackney, Caroline Woodley, and Cllr Sem Moema had comments about the introduction of licensing. They spoke of the importance of improving standards in the PRS. Plus, they said the aim is to ensure landlords in the borough are more responsible. It will ensure locals have good quality homes.
Find out more about estate management in Hackney
Landlords will need to think carefully about what to do between now and May 2026. There is a great opportunity to be proactive and fix any issues with properties before applying for a licence. Plus, there is time to consider alternatives.
As a top provider of solutions like guaranteed rent and estate management in Hackney, we appreciate that investors have a lot to think about. Our goal is to make it easier by sharing our knowledge and expertise. Additionally, we ensure the services we help to arrange are reliable.
So, if you want estate management in Hackney or other services, talk to us. We’re flexible, able to cater for estates, blocks, individual homes, and more.
