Selective licensing is a scheme operated by local councils in England that requires all privately rented properties within a designated area to be licensed, regardless of whether they are houses in multiple occupation (HMOs). The scheme is designed to tackle problems associated with low housing demand, antisocial behaviour, poor property conditions, high levels of migration, high deprivation, or high crime in specific areas.
This guide explains how selective licensing works, who needs a licence, how to apply, and what happens if you rent without one.
Under Part 3 of the Housing Act 2004, a local council can designate an area for selective licensing if it is satisfied that one or more of the following conditions are met in that area:
The statutory framework is set out in section 80 of the Housing Act 2004 (designation conditions), section 82 (consultation requirements), and section 90 (licence conditions).
This consultation must be genuine and must give affected parties a reasonable opportunity to make representations.
Once an area is designated, every privately rented property within it must be licensed by the council. This includes single-occupancy lets, family lets, and HMOs that do not meet the mandatory licensing threshold.
If your property is located within a designated selective licensing area and is rented out on a private tenancy, you need a selective licence. This applies to:
The following are generally exempt from selective licensing:
Applications are made to the local council. The process is similar to HMO licensing:
Councils are permitted to charge a fee that reflects the reasonable costs of administering the scheme. They cannot use licence fees as a general revenue source.
Licences are typically granted for up to five years. Some councils issue shorter licences where concerns exist.
Selective licences include conditions that the licence holder must comply with. Common conditions include:
| Condition | Requirement |
|---|---|
| Gas safety | Annual gas safety certificate |
| Electrical safety | EICR every 5 years |
| Smoke and CO alarms | Working alarms on each floor |
| Energy performance | Valid EPC (minimum rating E) |
| Tenancy management | Written tenancy agreement, inventory, deposit protection |
| Property maintenance | Keep in good repair, respond to disrepair within reasonable timescales |
| Anti-social behaviour | Take reasonable steps to prevent and address ASB |
| Waste management | Provide adequate waste disposal facilities |
| Tenant references | Obtain references before granting tenancies |
As of June 2026, over 130 councils in England operate selective licensing schemes. Some cover the entire borough (borough-wide schemes), while others cover specific wards or streets. Notable examples include:
You can browse all councils with selective licensing on the Tuxa locations page or search any address on the homepage for an instant result.
If a selective licensing designation covers more than 20% of the council's geographical area or more than 20% of its privately rented housing stock, the council must obtain confirmation from the Secretary of State (via MHCLG) before the scheme can take effect. This requirement was introduced by the Selective Licensing of Houses (Additional Conditions) (England) Order 2015.
This threshold was introduced in 2015 and has been a source of controversy, with some councils arguing it limits their ability to tackle poor housing conditions at scale.
Smaller schemes (covering less than 20% on both measures) can be made by the council without MHCLG approval, though the council must still consult for at least 10 weeks before making the designation.
Renting a property in a selective licensing area without a licence is a criminal offence under section 95 of the Housing Act 2004. The consequences are severe:
Criminal prosecution. Conviction carries an unlimited fine.
Civil penalties. Councils can issue civil penalties of up to £40,000 per offence as an alternative to prosecution (increased from £30,000 by the Renters' Rights Act 2025, effective 1 May 2026).
Rent repayment orders. Tenants or the local authority can apply for a rent repayment order requiring the landlord to repay up to 24 months of rent (doubled from 12 months by the Renters' Rights Act 2025).
Inability to serve possession notices. A landlord cannot serve a valid possession notice while the property requires a licence but does not have one.
Banning orders. Repeat offenders may face a banning order preventing them from letting any property in England.
For full details on penalties, see our guide to penalties for renting without a licence.
| Selective Licensing | Additional HMO Licensing | Mandatory HMO Licensing | |
|---|---|---|---|
| Legal basis | Housing Act 2004, Part 3 | Housing Act 2004, s.56 | Housing Act 2004, Part 2 |
| Applies to | All private rented properties in area | Smaller HMOs in area | HMOs with 5+ people nationally |
| Coverage | Council-designated areas only | Council-designated areas only | All of England |
| Requires MHCLG approval | Yes (for large schemes) | No | No |
| Typical duration | 5 years | 5 years | 5 years |
Use the Tuxa property checker to search any UK address. Tuxa checks the property coordinates against all active selective licensing boundaries and returns an instant result showing whether the property falls within a designated area.
You can also set up a property alert to be notified monthly if the licensing status of your property changes, for example if a new scheme is designated or an existing scheme expires.
Yes. Selective licensing applies to all privately rented properties in the designated area, regardless of the number of occupants. Even a single let to one person requires a licence.
Selective licensing designations last for a maximum of five years. When a scheme expires, the licensing requirement ends unless the council renews or replaces it with a new designation. Many councils do renew their schemes. Set up a Tuxa alert to be notified of changes.
Most councils open applications before the scheme's official start date (typically 3 to 6 months in advance). Applying early is strongly recommended, as operating under a pending application is not an offence provided the application was submitted before the scheme came into force.
No. Properties that are already subject to mandatory or additional HMO licensing are exempt from selective licensing. You only need one licence.
Selective licensing schemes in Wales operate under Welsh housing legislation rather than the Housing Act 2004. Cardiff and Swansea have both operated licensing schemes under this separate framework.
Last reviewed June 2026 by Ben Yarrow, founder of Tuxa. Data sourced from legislation.gov.uk, MHCLG guidance, and council licensing publications.