Does my rental property need a landlord licence?

Whether your property needs a licence depends on where it is located and how it is used. All HMOs (Houses in Multiple Occupation) with 5 or more occupants require a mandatory licence. Many councils also operate selective licensing schemes covering all private rented properties in a defined area, and additional licensing schemes for smaller HMOs. Use the Tuxa checker to instantly find out if your property is in a licensing area.

What is additional licensing?

Additional licensing extends HMO licensing beyond the mandatory national standard. Councils can designate areas where smaller HMOs (typically those with 3 or more occupants forming two or more households) must also be licensed. Additional licensing schemes are common in university cities and areas with high concentrations of shared housing.

What happens if I rent a property without a licence?

Renting a property without the required licence is a criminal offence. Landlords can face an unlimited fine in court, or a civil penalty of up to £30,000 issued by the council. Tenants can also apply for a Rent Repayment Order, which can require the landlord to repay up to 12 months of rent. Unlicensed landlords cannot serve a valid Section 21 notice to regain possession of their property.

How do I find out if my area has a selective licensing scheme?

The quickest way is to use the Tuxa property licence checker. Enter any UK address or postcode and Tuxa will instantly check against all 361 UK councils to show whether the property is in a selective, additional or mandatory HMO licensing area. Results are free to view.

What Is Selective Licensing? Areas, Fees and How It Works

Q: What is selective licensing?

Selective licensing is a scheme introduced under the Housing Act 2004 that allows local councils to require all private landlords in a designated area to obtain a licence, regardless of the property type or number of occupants. Councils use selective licensing to tackle problems such as anti-social behaviour, low housing demand, or poor property conditions. Failure to obtain a licence can result in a fine of up to £30,000 or a rent repayment order.

What is a Selective Licensing Scheme?

A selective licensing scheme is a designation made by a local council under Part 3 of the Housing Act 2004 that requires all landlords renting out properties in a defined area to hold a valid licence. Unlike mandatory HMO licensing, which applies nationally to larger shared houses, selective licensing can apply to any privately rented property. For a comparison of all three licensing types, see our guide to selective vs additional licensing. in the designated area, regardless of how many people live there or whether it is a shared house.

The scheme was introduced in 2006 to give local authorities greater powers to address problems in the private rented sector. Since then, it has grown substantially. According to data from property compliance specialist Kamma, there are now 128 active licensing schemes across England, with 49 new schemes launched in 2025 alone. A significant rule change came into effect on 23 December 2024: under the General Approval 2024, local housing authorities in England no longer need confirmation from the Secretary of State before implementing a selective licensing scheme of any size (subject to the scheme covering no more than 20% of the private rented sector in the borough).

Why Do Councils Introduce Selective Licensing?

A council can only designate a selective licensing area if it can demonstrate one or more of the following conditions:

The area suffers from low housing demand, meaning a significant and persistent fall in demand for housing.
The area has significant and persistent anti-social behaviour that landlords are failing to combat.
A significant proportion of housing is in poor condition.
The area experiences high levels of deprivation.

The MHCLG's independent review of selective licensing (2019) found that "selective licensing is an effective tool when implemented properly," with 94.4% of respondents agreeing that it "helps to ensure minimum standards for rented housing are met."

Before introducing a scheme, councils must consult with affected landlords, tenants, and the local community for at least 10 weeks. The funds raised from selective licensing fees are ring-fenced and cannot be used to fund other council services.

What Does a Selective Licence Require?

Licence conditions vary by council, but typically require the licence holder to:

Ensure the property is in a good state of repair and free from serious hazards
Carry out annual gas safety checks and provide a valid Gas Safety Certificate
Ensure the electrical installation is inspected every five years
Provide tenants with a current Energy Performance Certificate (EPC)
Ensure working smoke alarms are fitted on every floor and carbon monoxide alarms in rooms with solid fuel appliances
Manage the property effectively, including addressing anti-social behaviour

What Happens If You Do Not Have a Selective Licence?

Operating a property without a required selective licence is a criminal offence. Penalties include:

Civil financial penalties of up to £30,000 under the Housing and Planning Act 2016, rising to up to £40,000 for serious or repeat offences under the Renters' Rights Act 2025, which comes into force on 1 May 2026.

Rent Repayment Orders (RROs): tenants can apply to the First-tier Tribunal to reclaim up to 12 months of rent paid during the unlicensed period. Under the Renters' Rights Act 2025, this will double to 24 months.

Inability to serve a Section 21 notice: landlords without a valid licence cannot serve a valid no-fault eviction notice.

Birmingham City Council, which launched one of the most comprehensive licensing programmes in England in 2023, issued £450,000 in fines by August 2025, having conducted over 12,000 inspections. Councillor Nicky Brennan stated: "The rules have been made clear, and it is the responsibility of landlords to take immediate action to avoid facing penalties."

How Can I Check If My Property Needs a Selective Licence?

The easiest way to check is to use Tuxa. Enter your property address and we will instantly tell you whether it falls within a selective licensing scheme. With nearly 70% of urban areas now covered by at least one licensing scheme, and new schemes launching regularly, it is important to check regularly rather than assuming your property is unaffected.

Check Your Property Now

The fastest way to find out whether your property needs a licence is to use the Tuxa property licence checker — enter any UK address and get an instant result showing which schemes apply, scheme dates, and a direct link to the council's licensing page.