Lewisham Council in London is proposing to introduce licensing for landlords renting out accommodation above commercial properties (such as flats above shops) for multiple occupation.

Under the proposed scheme any private landlord operating a private rented flat in multiple occupation above commercial premises will need to apply for a licence, show that they comply with the requirements of the licence and pay the fee. A licence is likely to cost around £100 to £110 a year.

Cllr Damien Egan, Cabinet Member for Housing, said: “With around 33,000 properties the private rented sector in Lewisham is now huge and growing every day. While most landlords play by the rules there are an increasing number of rogue landlords who are exploiting vulnerable tenants. We’re building on some high profile successes in Lewisham where we’ve prosecuted these landlords, with our new licensing scheme.

“The scheme will start with properties where we have the biggest problems, rented flats above shops. Although the rents can be very expensive some of these flats are unsafe and unfit for human habitation.”

The council estimate that there are 4,223 private lets in 1,813 properties above commercial premises across the borough of Lewisham with evidence indicating that large HMOs, which are already subject to mandatory licensing, provide more satisfactory housing than small HMOs, suggesting that licensing does help to improve standards.

If a landlord continues to operate a private letting without a licence then they will be liable for prosecution. They may also be liable for a Rent Repayment Order (RRO).

The consultation will run until 5pm on 24 November 2015.