Lambeth Council set to push ahead with borough-wide landlord licensing scheme

Lambeth Council looks set to sign off the second phase of its Selective Licensing Scheme — expanding regulation to nearly every corner of the borough’s private rented sector.

From July 2025, landlords in 19 additional wards — covering areas from Clapham and Brixton to Streatham and Kennington — will be legally required to obtain licences to rent out properties.

The cost will be £640 for a five year licence. Discounts may be available for early applications or accredited landlords, but new owners will have to reapply and pay again if a property is sold during the licence period.

The scheme, which will now span almost the entire borough with the exception of Waterloo & South Bank and Vauxhall, aims to clamp down on poor housing conditions, antisocial behaviour, and rogue landlords.

The Selective Licensing Scheme in Lambeth was first trialed in four wards: Knights Hill, Streatham Common & Vale, Streatham Hill East, and Streatham St. Leonards. Over a thousand landlords applied for a licence within the first month.

The extended roll out follows a shift in government policy last December, which handed councils full control to implement large-scale licensing schemes without Whitehall sign-off. Lambeth wasted no time seizing the opportunity.

The Council estimates that over 9,400 homes in the borough’s private rented sector pose serious health and safety risks. Nearly one in three homes in Lambeth is privately rented — many in areas with high deprivation and rising levels of tenant complaints.

Under the plan, landlords will need to pay for a licence lasting up to five years. The Council claims the fees are set to be cost-neutral, with no profit-making allowed.

To support the rollout, Lambeth is building a dedicated licensing enforcement team, new IT systems, and a reserve fund to manage operational costs. The scheme is expected to run for a total of ten years to allow for full compliance and enforcement.

The Council claims the scheme will not only improve physical housing standards but also support tenants’ mental health and community safety.

An Equality Impact Assessment found that tenants from Black and minority ethnic backgrounds, lone parents, and young renters – who are overrepresented in the borough’s – stand to benefit the most.

But questions remain over the scheme’s limits. Critics warn that fees may be passed on to tenants in the form of rent hikes, while some landlords could exit the market altogether. Lambeth insists it will monitor outcomes and adjust the programme as needed.

The Council received over 10,000 complaints relating to antisocial behaviour or noise in the private rented sector over the last three years.

Officers argue that a tougher licensing regime is essential to improving living standards = particularly in a borough where many residents are being priced out or pushed into substandard accommodation.

Previously, schemes of this size required ministerial approval if they covered more than 20% of the local housing stock or geographic area.

But in a quiet policy shift, the government’s General Approval 2024 eliminated that barrier, allowing councils to go it alone, with appropriate consultation and legal safeguards.

Lambeth’s licensing scheme has now cleared its final legal hurdle. Implementation begins this summer, with licences issued through to 2030 and enforcement likely to ramp up in the years to follow.