Something that has recently caught attention in the property sector is the news that Medway Council is considering requiring all HMO landlords in certain areas to obtain a licence regardless of the size of their property.
What is HMO Licensing?
Before exploring the details of the proposals, it is worth clarifying what HMO licensing means, as it often causes confusion. Many landlords assume it is related to Article 4 and Planning Permission, but this is not the case. Licensing operates separately from planning regulations.
HMO licensing requires landlords to officially register their property and undergo an inspection by the local council. If the property meets the necessary standards, the council issues a licence that allows the property to operate legally. Medway Council currently charges a fee of £1,305.30 for this licence, which must be renewed every five years.
Licensing is designed to uphold property standards by ensuring compliance with fire and building safety regulations, adequate kitchen and bathroom facilities, prevention of overcrowding, and adherence to minimum room size requirements. Landlords must also provide valid gas and electrical safety certificates and maintain the property in good condition.
While the requirement for a licence represents an additional cost for HMO landlords, it plays an important role in maintaining standards across the sector. Unfortunately, the actions of rogue landlords have damaged the industry’s reputation, despite the majority operating responsibly and providing good quality housing.
What Changes is Medway Council Proposing?
At present, the Medway proposals are out for consultation, with a review expected in April 2026 and potential implementation the following summer.
The proposals include the introduction of additional and selective licensing across several wards:
- Chatham Central
- Brompton
- Fort Pitt
- Gillingham North
- Gillingham South
- Luton
- Strood North
- Frindsbury
- Watling
According to analysis by Cadence Innova, 22% of shared-amenity HMOs in Medway contain at least one serious hazard, including issues such as mould, electrical faults, and fire safety concerns. Over a five-year period, the council has received 339 complaints related to HMOs, along with 101 reports of anti-social behaviour.
There are estimated to be 1,018 HMOs in the Medway Towns, both known and hidden, with 658 located within the affected wards. Further information from an ongoing Freedom of Information request may provide a clearer picture of the distribution of these properties.
In addition, Naushabah Khan, MP for Gillingham and Rainham, is urging Medway Council to consider an Article 4 direction, although progress on this matter remains uncertain.
What Will the Impact on Landlords Be?
There is limited data available regarding how similar licensing schemes have affected local HMO markets in terms of supply and rental rates. However, Medway continues to be viewed as a strong location for property investment.
Responsible landlords who already meet council standards are unlikely to be significantly affected beyond the cost of obtaining the licence, which may ultimately be offset through rent adjustments. Those operating without meeting basic requirements or attempting to avoid registration, however, could face greater challenges.
The introduction of tighter requirements highlights the importance of working with experienced managing agents who can ensure compliance and uphold professional standards.
Medway Council’s consultation provides an opportunity for landlords and stakeholders to share their views on the proposed changes.
For further information or to discuss how these proposals may affect landlords, please get in touch with our team on info@home-share.co.uk.
