Selective licensing differs from HMO licensing: it covers standard single-household private rented properties, not just houses in multiple occupation. A local authority can designate a selective licensing area if it meets one of five statutory conditions — most commonly low housing demand, significant and persistent antisocial behaviour, high levels of migration, high levels of deprivation, or high levels of crime.
As of May 2026, over 60 local authorities in England operate selective licensing schemes in one or more designated areas. Some operate borough-wide; others apply to specific wards or streets. The designation must be confirmed by the Secretary of State where it covers more than 20% of a local authority's area — but targeted ward-level schemes below this threshold proceed without central approval.
The five statutory conditions for selective licensing
A local authority can designate a selective licensing area if the area — or part of it — satisfies one or more of these conditions:
- Condition A: Low housing demand (or is likely to become so)
- Condition B: Significant and persistent antisocial behaviour that landlords are failing to take action to combat
- Condition C: High levels of migration (introduction of LASL scheme: Local Authority Selective Licensing)
- Condition D: High level of deprivation
- Condition E: High levels of crime
How selective licensing differs from HMO licensing
There are three types of landlord licensing in England. Understanding which applies is critical:
- Mandatory HMO licensing: Applies nationally to all HMOs with 5+ people in 2+ households. No designation required — it applies automatically
- Additional HMO licensing: Council designates an area where smaller HMOs also need a licence (3–4 people, or certain property types)
- Selective licensing: Applies to any privately rented property in a designated area — including standard single-let houses and flats. No HMO status required
- A property in a selective licensing area that is also an HMO requires both a selective licence AND an HMO licence (mandatory or additional, as applicable)
Cost and duration of a selective licence
Licence fees and conditions vary by local authority. Typical parameters:
- Fee: £300–£750 per property for a 5-year licence (some councils offer discounts for accredited landlords or early applications)
- Duration: Up to 5 years. Licences are not transferable — a new licence is required when a property is sold or the landlord structure changes
- Conditions: Each licence carries conditions set by the council — typically gas safety, EICR, smoke alarms, carbon monoxide alarms, tenancy management standards, and a fit-and-proper person test
- Fit and proper person test: The applicant (and any managing agent) must not have certain criminal convictions, civil penalties for housing offences, or County Court Judgements relating to landlord obligations
How to check if your property is in a selective licensing area
There is no national register — each local authority manages its own scheme:
- Search '[your council name] selective licensing' to find the council's licensing portal
- Many councils have an online postcode checker to identify designated areas
- Contact the council's private sector housing or environmental health team directly
- Check the council's website for consultation notices and designation orders — new schemes are consulted on publicly
- Many areas in Liverpool, Salford, Nottingham, Middlesbrough, Sunderland, Derby, and various London boroughs currently operate schemes
Consequences of operating without a selective licence
Non-compliance with selective licensing is a criminal offence under the Housing Act 2004:
- Criminal prosecution: Unlimited fine on conviction for operating without a required licence
- Civil penalty: Up to £30,000 civil penalty as an alternative to prosecution (the local authority can choose either route)
- Rent repayment order: Tenants can apply to the First-tier Tribunal for up to 12 months' rent repaid by the landlord — this applies even if the landlord was unaware the licence was required
- Possession bar: Under the Renters' Rights Act 2025, compliance with licensing requirements is a pre-condition for a valid Section 8 notice. A landlord without a required selective licence may be unable to obtain possession of their property
- Management order: In extreme cases the council can take over management of the property
Selective licensing and Renters' Rights Act 2025
The Renters' Rights Act 2025 has increased the importance of selective licensing compliance. From 1 May 2026, landlords who fail to hold a required licence face an additional barrier:
- A Section 8 possession notice served without the required licence in place may be challenged and invalidated
- The RRA 2025 strengthened enforcement provisions and increased the civil penalty maximum for licensing breaches to £30,000
- Local authorities are actively using licensing conditions to enforce minimum standards — non-compliant properties can face prohibition orders preventing occupation
Frequently asked questions
What is selective licensing?+
Selective licensing is a scheme under the Housing Act 2004 that allows local authorities to require all private landlords in a designated area to hold a licence for each rental property. Unlike HMO licensing, it applies to all privately rented homes — not just houses in multiple occupation. Operating without a required selective licence is a criminal offence with an unlimited fine.
Which councils have selective licensing?+
Over 60 local authorities in England operated selective licensing schemes as of May 2026. Major cities with significant coverage include Liverpool, Nottingham, Salford, Middlesbrough, Sunderland, Derby, and several London boroughs (Newham, Waltham Forest, Southwark). Always check directly with your local council — schemes change and new ones are introduced regularly.
How much does a selective licence cost?+
Fees vary by council but typically range from £300 to £750 per property for a 5-year licence. Some councils offer discounts for accredited landlords, landlords who apply early in a new scheme, or those who agree to a higher standard of conditions. The licence is specific to the property — it cannot be transferred to a new owner when the property is sold.
Do I need a selective licence AND an HMO licence?+
If your property is in a selective licensing area AND it meets the HMO definition (multiple households sharing facilities), you need both a selective licence and an HMO licence (mandatory or additional, as applicable). The two schemes operate in parallel — one does not substitute for the other.
Can I be fined if I didn't know my area had selective licensing?+
Yes. The offence of operating without a required selective licence applies whether or not you knew the scheme existed. Ignorance of the designation is not a defence. Tenants can also apply for a rent repayment order covering up to 12 months' rent regardless of the landlord's knowledge. Check with your council before letting any property.