Selective Licensing, How Local Councils Require Private Landlords to Register

What is Selective Licensing?

Selective licensing is a local authority power under Part 3 of the Housing Act 2004 that allows a council to designate an area where **all** privately rented properties, not just HMOs, require a licence to operate. Unlike mandatory HMO licensing, which applies nationally, selective licensing is a local discretionary scheme and applies only within the designated area.

The policy rationale for selective licensing is to address problems associated with poor property management in areas experiencing low housing demand, significant antisocial behaviour, poor property conditions, or rapid population turnover.

Where Do Selective Licensing Schemes Apply?

Selective licensing schemes must be formally designated by the local authority following a consultation process. A council may designate a scheme covering:

• A specific street or group of streets
• A ward or neighbourhood
• In some cases, the entire local authority area

Prominent examples of large selective licensing schemes have included areas of Liverpool, Nottingham, Bristol, and several London boroughs. The position changes regularly as new schemes are introduced and existing ones expire or are replaced.

**A landlord must check with each relevant local authority whether their property falls within a designated area.** There is no single national register of all current selective licensing schemes, though some councils publish their designation orders online.

How Does Selective Licensing Work?

When a selective licensing scheme is in force, a landlord must:

1. Apply to the council for a licence for each property within the designated area before (or as soon as practicable after) the tenancy begins

2. Pay the application fee

3. Comply with the conditions attached to the licence throughout its duration

4. Renew the licence when it expires (typically every three to five years)

Costs

Licence fees are set by each individual council and vary considerably across England. Fees typically range from **£300 to £900 per property** for a five-year licence, though some councils charge more. Some councils offer reduced fees for accredited landlords or those who pay early in the application window.

Mandatory and Additional Licensing vs Selective Licensing

It is important to understand the three licensing regimes and how they interact:

A property that is an HMO in a selective licensing area may require both an HMO licence and a selective licence, or the council may combine these into a single application process.

Penalties for Non-Compliance

Operating a rented property in a selective licensing area without a licence is a criminal offence under the Housing Act 2004. Penalties include:

• An unlimited fine in the Magistrates' Court
• A civil penalty of up to **£30,000**
• A **Rent Repayment Order** requiring repayment of up to 12 months' rent

A licence cannot be backdated, operating without a licence for even a short period constitutes an offence.

Managing Compliance on Property Passport UK

Landlords can record selective licensing details, licence number, designating authority, licence conditions, and expiry date, directly on their property's record within Property Passport UK. This provides a centralised compliance record for portfolio landlords operating across multiple licensing areas.