Landlord guide: London Borough of Hackney

Why it matters

Failing to comply with licensing requirements in Hackney can lead to unlimited fines, prosecution, rent repayment orders, and restrictions on serving possession notices. Non-compliance with national safety regulations, such as gas or electrical checks, not only risks the safety of your tenants but also carries severe penalties, including fines and imprisonment in some cases. Moreover, a failure to protect tenancy deposits or provide required information can prevent a landlord from regaining possession of their property and result in financial compensation claims from tenants, making diligent adherence to all regulations paramount for any responsible landlord.

Legal requirements

• Obtain a mandatory HMO licence if letting to five or more people forming two or more households who share facilities.
• Secure an additional HMO licence if letting to three or four people forming two or more households who share facilities, as this scheme covers the entire borough.
• Check Hackney Council's website for any selective licensing designations that might require a licence for all private rented properties in specific areas.
• Possess a valid Gas Safety Certificate for any gas appliances, renewed annually by a Gas Safe registered engineer.
• Ensure an Electrical Installation Condition Report EICR is obtained and remains valid, generally renewed every five years, from a qualified person.
• Provide tenants with a valid Energy Performance Certificate EPC before marketing the property or entering a tenancy agreement.
• Install working smoke alarms on every storey and a carbon monoxide alarm in any room with a fixed combustion appliance, excluding gas cookers.
• Protect any tenancy deposit in an approved scheme within 30 days of receipt and issue prescribed information to the tenant.
• Provide tenants with a copy of the How to Rent guide at the start of the tenancy and ensure any future versions are also provided.
• Comply with all changes introduced by the Renters' Rights Act 2025, including the new assured tenancy framework and updated possession grounds.
• Register with the national landlord database introduced by the Renters' Rights Act 2025.

Common mistakes

• Assuming a property is exempt from licensing without checking current Hackney Council designations for mandatory, additional, or selective licensing.
• Failing to renew gas safety certificates annually or EICRs every five years, leading to serious safety and legal non-compliance.
• Not providing tenants with the 'How to Rent' guide or neglecting to update it when new versions are published, which can invalidate certain notices.
• Misunderstanding the new possession grounds under the Renters' Rights Act 2025, particularly the abolition of 'no-fault' section 21 notices.
• Delaying the protection of a tenancy deposit or failing to issue the prescribed information within the strict 30-day deadline.
• Ignoring the requirements for working smoke and carbon monoxide alarms, risking tenant safety and severe penalties.
• Attempting to raise rent without following the correct legal procedure, which now requires a specific notice period and form under the Renters' Rights Act 2025.
• Failing to respond promptly to tenant repair requests, which can lead to formal complaints, housing enforcement action, and potential 'fit for human habitation' claims.

Practical guidance

• Visit the Hackney Council property licensing website regularly to check for new or updated licensing schemes that might affect your property.
• Maintain a comprehensive digital or physical file for each property, containing all certificates, tenancy agreements, and communications.
• Schedule annual gas safety checks and five-yearly EICR renewals in advance, using certified professionals.
• Obtain an Energy Performance Certificate before advertising your property and ensure it meets minimum energy efficiency standards.
• Install and regularly test smoke alarms on every habitable storey and carbon monoxide alarms where required, ensuring tenants are aware of their presence.
• Use a government-approved tenancy deposit scheme and ensure both the deposit and prescribed information are provided to tenants within 30 days of receipt.
• Familiarise yourself thoroughly with the Renters' Rights Act 2025, including the new periodic assured tenancy framework and the amended grounds for possession.
• Utilise the free landlord training and resources offered by Hackney Council or landlord associations to stay informed about regulatory changes.
• Ensure all tenancy agreements are up-to-date and reflect the current legal landscape, particularly following the Renters' Rights Act 2025.
• Communicate clearly and professionally with tenants regarding maintenance, inspections, and any changes to their tenancy terms.

Property Licensing in the London Borough of Hackney

The London Borough of Hackney operates a robust property licensing regime designed to improve living conditions and management standards in the private rented sector. This regime comprises three main types of licensing. Mandatory HMO licensing applies nationally to properties rented to five or more people forming two or more separate households who share basic amenities such as a kitchen, bathroom, or toilet. These properties are always subject to licensing, regardless of their location. Hackney Council has also implemented an additional licensing scheme for smaller HMOs. This scheme applies to properties occupied by three or four individuals forming two or more households who share facilities, extending licensing requirements across the entire borough. Furthermore, Hackney Council may designate areas for selective licensing. Under a selective licensing scheme, every private rented property within a designated area, including those let to single families or individuals, requires a licence. These designations are typically ward- or street-specific and run for up to five years, so landlords must always verify the current status of their specific property's address. Operating a licensable property without a valid licence is a criminal offence and can result in severe penalties, including unlimited fines, rent repayment orders, and prohibitions on serving possession notices.

The Renters' Rights Act 2025: Key Changes for Hackney Landlords

The Renters' Rights Act 2025, with its main provisions commencing in 2026, marks a significant reform of the private rented sector across England and Wales. For landlords in Hackney, a primary change is the abolition of assured shorthold tenancies ASTs and 'no-fault' section 21 evictions. All new tenancies are now periodic assured tenancies from their inception, offering tenants greater security of tenure. Landlords can only regain possession using specific, fault-based grounds, or limited non-fault grounds such as needing to sell the property or move in themselves, which have stricter conditions and notice periods. The Act also introduces a new Private Rented Sector Ombudsman, providing a mandatory redress scheme for all landlords, and establishes a national landlord database. This database requires landlords to register, enhancing accountability and transparency. Rent review procedures are also streamlined, allowing tenants to challenge unreasonable increases. Landlords must update their tenancy agreements, notice forms, and internal processes to align with these new legal requirements to ensure compliance and avoid potential disputes or invalid actions. Similar changes are anticipated or have already occurred in Scotland, Wales, and Northern Ireland under their own legislative frameworks.

Mandatory Safety and Compliance Checks

Beyond property licensing, landlords in Hackney must adhere to several critical national safety and compliance regulations. All gas appliances and flues in rented properties must undergo an annual safety check by a Gas Safe registered engineer, with a copy of the Gas Safety Record provided to tenants. Electrical installations must be inspected and tested by a qualified person at least every five years, with an Electrical Installation Condition Report EICR issued and provided to tenants. Properties must also have a valid Energy Performance Certificate EPC, which rates the property's energy efficiency, and typically needs to be an 'E' rating or above for new tenancies. Landlords are legally required to install at least one smoke alarm on each storey of the property and a carbon monoxide alarm in any room used as living accommodation where there is a fixed combustion appliance, excluding gas cookers. These alarms must be tested at the start of each new tenancy. Furthermore, any tenancy deposit taken must be protected in one of the government-approved schemes within 30 days of receipt, and the prescribed information must be provided to the tenant, otherwise, landlords can face severe penalties and difficulties in regaining possession.

Deposit Protection and Prescribed Information

A crucial compliance point for Hackney landlords is the correct handling of tenancy deposits. Under UK law, any deposit taken from a tenant for an assured tenancy must be protected in one of the government-approved tenancy deposit schemes within 30 days of receiving it. There are three such schemes in England and Wales: Deposit Protection Service DPS, MyDeposits, and Tenancy Deposit Scheme TDS. Alongside protecting the deposit, landlords must also provide the tenant with 'prescribed information' within the same 30-day window. This information includes details of the scheme used, the deposit amount, the landlord's contact details, and what to do if there's a dispute. Failure to comply with these requirements can lead to significant consequences. A landlord may be ordered by a court to pay the tenant between one and three times the value of the deposit as compensation. Crucially, non-compliance can also prevent a landlord from serving a valid notice to regain possession of their property, even if they have other legitimate grounds. This underscores the importance of meticulously following the deposit protection rules.

Regional Variations: Scotland, Wales and Northern Ireland

While this guide focuses on England, particularly the London Borough of Hackney, it is important to note that landlord-tenant laws vary significantly across the UK. Scotland, Wales, and Northern Ireland each have their own devolved legislative frameworks. In Scotland, the Private Housing Tenancies Scotland Act 2016 introduced the Private Residential Tenancy PRT, which is an 'open-ended' tenancy similar in principle to the new periodic assured tenancies in England, with no fixed terms and specific grounds for repossession. Wales introduced the Renting Homes Wales Act 2022, which replaced assured shorthold tenancies and assured tenancies with 'standard contracts' and 'secure contracts', simplifying the rental landscape and providing greater security. Northern Ireland operates under its own distinct housing legislation, primarily the Private Tenancies Northern Ireland Order 2006, which includes specific rules regarding tenancy agreements, repairs, and deposit protection that differ from England. Landlords operating in these regions must consult the respective government guidance and legislation to ensure full compliance, as the rules for licensing, tenancy management, and possession can be substantially different from those in England.