Selective Licensing Exemptions UK 2026 — Complete Landlord Guide to Exemptions, TENs, and Challenging Designations

Statutory exemptions — properties that do not require a selective licence

The Housing Act 2004 contains statutory exemptions from selective licensing that apply regardless of the terms of any individual designation. These exemptions cannot be overridden by local authority designation orders:

• Properties subject to a mandatory HMO licence: A property that is subject to mandatory HMO licensing under the Housing Act 2004 Part 2 (i.e., an HMO with 5 or more occupiers in 2 or more households with 3 or more storeys) does not also require a selective licence in the same area. The mandatory HMO licence is taken to fulfil the licensing requirement — the property cannot be double-licensed under both schemes. This is a complete statutory exemption under s.79(3)(a) HA 2004
• Properties subject to additional HMO licensing: Whether a property subject to an additional HMO licence (under a local authority additional licensing scheme) is also exempt from selective licensing depends on the terms of the specific selective licensing designation. The statutory exemption under s.79(3) is narrower than for mandatory HMO licensing. Where a local authority operates both an additional HMO licensing scheme and a selective licensing scheme for the same area, the designation order may expressly exclude additional-licensed properties from selective licensing — but landlords should check the specific designation terms rather than assuming an exemption
• Properties managed or controlled by an exempt person: Properties where a registered social landlord (housing association) or a local authority is the landlord or manager do not require a selective licence. Properties managed under interim or final management orders made by the local authority are also exempt. Properties subject to a tenancy in which the landlord is a registered provider of social housing are exempt
• Certain types of occupancy arrangement: Holiday lettings (where the agreement does not allow occupation for more than 31 days at a time and the property is occupied principally for holiday purposes) are exempt from selective licensing. Student halls managed by an educational institution are exempt. Properties let on long tenancies (over 7 years) are exempt. Owner-occupied properties (where the landlord lives in the property as their only or principal home) do not require a selective licence

Temporary Exemption Notices (TENs) — applying and grounds

A Temporary Exemption Notice (TEN) is a short-term exemption granted by the local authority where a landlord cannot immediately apply for or hold a selective licence. TENs bridge the gap between a change in the property's status and full licensing compliance:

• What a TEN does: A TEN temporarily suspends the requirement to hold a selective licence for a specified period. During the period of the TEN, the landlord can let the property without a selective licence. A TEN is not a licence — it does not grant the landlord the ongoing right to let the property; it only suspends the licensing requirement for the specified period
• Grounds for a TEN: The Housing Act 2004 s.86 allows a local authority to grant a TEN where it considers that, for the time being, it is not reasonably practicable for the person to comply with the licensing requirement. The grounds typically include: (1) recent change of ownership — new owner has not yet had time to apply for a licence; (2) property recently inherited or acquired in probate; (3) landlord has applied for a licence but it has not yet been processed; (4) the property is in the process of being sold and will leave the rental market; (5) the landlord is taking steps to comply with licensing conditions that need to be met before a licence can be granted (for example, where works are required)
• TEN duration: A TEN lasts for a maximum of 3 months from the date of issue. The local authority may grant one further TEN of up to 3 months (a second TEN), giving a maximum total TEN period of 6 months. No further TENs can be granted after the second one — the landlord must then either hold a licence or the property cannot be let
• Applying for a TEN: Apply in writing to the local authority's housing licensing team as soon as the need for a TEN arises — ideally before the property is let without a licence. The application should state: the address of the property; why the licensing requirement cannot currently be met; the steps being taken to achieve compliance; and the period for which the TEN is requested. Local authorities have discretion to grant or refuse TENs — there is no automatic right to a TEN

Challenging a TEN refusal — appeal to the First-tier Tribunal

Where a local authority refuses to grant a TEN, or grants one for a shorter period than requested, the landlord can appeal to the First-tier Tribunal (Property Chamber):

• Right of appeal — First-tier Tribunal (Property Chamber): A landlord who is refused a TEN (or who is unhappy with the terms of a TEN) can appeal to the First-tier Tribunal (Property Chamber) within 28 days of the local authority's decision. The Tribunal can confirm the local authority's decision, reverse it, or modify it (for example, extending the TEN period). The appeal is on the merits — the Tribunal considers whether the local authority was correct to refuse the TEN
• Challenging the underlying designation: Beyond TEN appeals, landlords can challenge the underlying selective licensing designation itself. A designation is invalid if the local authority did not comply with the statutory consultation requirements (minimum 10-week public consultation), did not obtain Secretary of State confirmation (for large designations covering more than 20% of the local authority's properties or over 5 years), or acted for an improper purpose. Challenges to designations are by judicial review in the High Court — these are rarely successful but have been used in cases where councils have rolled over existing designations without adequate consultation
• Challenging civil penalties: Where a landlord has received a civil penalty for letting without a licence, there is a right of appeal to the First-tier Tribunal within 28 days of the final notice. The Tribunal can cancel, confirm, or vary the penalty amount. Grounds of appeal typically include: the landlord was not in fact operating in a selective licensing area; the property was exempt; the landlord held a valid TEN; the penalty amount is excessive; the landlord had a reasonable excuse for non-compliance
• Challenging rent repayment orders: Where tenants have applied for a rent repayment order (RRO) based on the landlord letting without a licence, the landlord can defend the RRO application in the First-tier Tribunal by establishing that: the property was actually exempt; a TEN was in force; or there are other reasons why an RRO should not be granted or should be reduced. The amount of an RRO can be reduced where the Tribunal considers the landlord's conduct does not warrant the full 12-month award

Checking whether you're in a designation area and consequences of non-compliance

Before purchasing or continuing to let a property, landlords should verify whether it falls within a selective licensing designation area. Non-compliance carries serious financial consequences:

• How to check whether you're in a designation area: There is no single national database of all selective licensing designations. Landlords must check: (1) the relevant local authority's website — most publish interactive maps of licensing designations; (2) the Selective Licensing England database (maintained by a third party — contains a near-comprehensive list of active English designations); (3) direct enquiry to the local authority's housing licensing team; and (4) the local authority search in the conveyancing process — the LLC1 and Con29 local authority search includes selective licensing designations in force for the property area
• Civil penalties for letting without a licence: A local authority can impose a civil penalty of up to £30,000 on a landlord who lets a property in a selective licensing area without a licence and without a valid TEN. Civil penalties of up to £30,000 apply from April 2024 (increased from £20,000 under the Housing (Amendment) Act 2023). Civil penalties are issued by notice; the landlord has the right to make written representations before the final notice is issued, and the right to appeal to the First-tier Tribunal within 28 days of the final notice
• Rent repayment orders: Where a landlord lets without a licence in a selective licensing area, the tenant(s) can apply to the First-tier Tribunal for an RRO of up to 12 months' rent. The local housing authority can also apply for an RRO where the tenant does not apply. RROs are in addition to (not instead of) civil penalties. A landlord can face both a civil penalty and an RRO for the same unlicensed property
• Buying tenanted property in a selective licensing area: Where a landlord buys a tenanted property in a selective licensing area, the new landlord inherits the licensing obligation immediately on completion. The previous owner's licence is not transferable — a new licence is required in the new owner's name. The new landlord should apply for a TEN and then a full licence immediately on completion. Pre-purchase due diligence should confirm whether the property is in a selective licensing area and whether a licence will be needed from day one

Frequently asked questions