Selective licensing is a discretionary power granted to local authorities under Part 3 of the Housing Act 2004. When a council designates a selective licensing area, every private landlord letting a property in that area must hold a licence, including standard single-let houses and flats. It is one of the broadest of all landlord compliance obligations and one of the least well-known.
How schemes are created
- A local authority resolves to designate an area under one of five statutory conditions (low demand, antisocial behaviour, high migration, high deprivation, high crime)
- A statutory public consultation must run for at least 10 weeks
- For schemes covering more than 20% of the local authority's area: central government confirmation is required
- The designation specifies boundaries, duration (up to 5 years), and licence conditions
- Schemes are public, check council planning notices and subscribe to housing alerts
Licence conditions
- Gas safety: annual CP12, evidence of service to tenants
- Electrical safety: current EICR, provided within 28 days
- Smoke and CO alarms in working order at the start of each tenancy
- Written tenancy agreement, inventory, and prescribed documents
- Maximum occupancy specified on the licence
- Fit-and-proper person test, criminal convictions for certain offences result in refusal
- Documented complaint-handling procedure
Rent repayment orders
One of the most financially dangerous consequences of non-compliance. Under the Housing and Planning Act 2016, tenants and local authorities can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) covering up to 12 months' rent, even if the landlord was unaware of the scheme and even if the tenancy has ended. The RRO is in addition to any fine or civil penalty.
Major selective licensing areas (May 2026)
- Liverpool: City-wide scheme covering most of the city (renewed multiple times)
- Nottingham: City-wide selective plus city-wide additional HMO licensing
- Salford: Ordsall, Broughton, and Eccles designated areas
- Middlesbrough: Extensive urban area coverage
- Newham and Waltham Forest: Borough-wide London schemes
- Southampton: Multiple designated wards
- Many other councils across Northern England, Midlands, and London
Selective licensing and Renters' Rights Act 2025
Under the RRA 2025, a Section 8 possession notice may be invalidated if the landlord does not hold a required selective licence at the time of service. Non-compliance also blocks any future possession claim until the licence is obtained. The civil penalty maximum for licensing breaches was increased to £30,000 by the RRA 2025.