Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

L&G Faces Scrutiny Over Reported Two-Year Licensing Delay in Lewisham

Lewisham Council has stated that Legal & General (L&G) submitted a licensing application for one property 744 days after the borough’s selective licensing scheme began. Reports indicate that over 300 applications connected to the same L&G development remain pending, raising questions about potential rent repayment and civil penalty exposure.

A letter from Lewisham Council, dated 10 August 2026, informed a tenant at the Bale & Anchor development that the licensing application for their home was made on 15 July 2026. The council noted that the landlord should have held a licence from 1 July 2024, when the selective licensing scheme came into force. The tenant was invited to consider applying for a Rent Repayment Order.

Inside Housing Living has reported that 315 properties operated by L&G had licensing applications pending. As of 27 March 2026, Lewisham Council had reportedly been unable to identify an application for the development. L&G responded that managing agent Urbanbubble had delegated responsibility for licensing and had been engaging with the council since 2024. L&G stated that applications had now been made for all relevant properties and remained pending. Urbanbubble did not provide a comment to Inside Housing.

The distinction between a licensing delay and an application delay is significant. Under section 95 of the Housing Act 2004, a landlord has a defence once a valid licensing application has been made. The key allegation is that valid applications were not submitted until July 2026, nearly two years after the scheme began.

Speculation has arisen about potential financial exposure, with calculations suggesting possible rent repayment and civil penalties exceeding £15 million. However, the report notes that there is no published tribunal application, Rent Repayment Order, civil penalty notice, or finding that L&G has committed an offence. The figures are based on assumptions about the number of qualifying tenancies, claims being made, and penalties applied.

For letting agents and inventory clerks, the case highlights the importance of timely licensing applications and clear communication with local authorities. The situation remains under review, with no confirmed penalties or tribunal findings at this stage.