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.

Selective Licensing Explained: A Guide for UK Landlords

What Is Selective Licensing?

Selective licensing is a scheme introduced under the Housing Act 2004 that allows local councils in England and Wales to require all privately rented properties in a designated area to be licensed. Unlike mandatory HMO licensing, selective licensing applies to all privately rented properties in the designated area, regardless of size or the number of occupants.

The scheme was first introduced in 2006 and has expanded significantly in recent years. According to data from property compliance specialist Kamma, there are now 128 active licensing schemes across England, with 49 new selective and additional schemes launched in 2025 alone. A rule change in December 2024 accelerated this growth: 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.

Why Do Councils Introduce Selective Licensing?

Councils can designate a selective licensing area if they can demonstrate that the area suffers from one or more of the following conditions set out in Part 3 of the Housing Act 2004:

Low housing demand - an area experiencing a significant and persistent fall in demand for housing.
Significant and persistent anti-social behaviour - where landlords are failing to combat anti-social behaviour.
Poor property conditions - where a significant proportion of housing is in poor condition.
High levels of deprivation - where the area is experiencing high levels of deprivation.

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

What Are the Conditions of a Selective Licence?

A selective licence will typically require the licence holder to ensure the property is in a good state of repair, carry out gas and electrical safety checks, provide tenants with an Energy Performance Certificate (EPC), and ensure working smoke and carbon monoxide alarms are fitted. Licence conditions vary by council, but all must comply with the statutory framework under the Housing Act 2004.

What Happens If You Do Not Have a Selective Licence?

Operating a property without a required selective licence is a criminal offence under the Housing Act 2004. Penalties are significant and have become more severe in recent years.

Under the Housing and Planning Act 2016, councils can issue civil financial penalties of up to £30,000 as an alternative to prosecution. Under the Renters' Rights Act 2025, which comes into force on 1 May 2026, this rises to up to £40,000 for serious or repeat offences.

Tenants can also apply to the First-tier Tribunal for a Rent Repayment Order (RRO), requiring the landlord to repay up to 12 months of rent received during the unlicensed period. Under the Renters' Rights Act 2025, this will double to 24 months. As Paul Sowerbutts, Head of Legal at Landlord Action, has stated: "It is not about whether a landlord intended to break the rules but rather about whether they did. In most cases, there is no defence if the property should have been licensed but was not."

Landlords without a valid selective licence also cannot serve a valid Section 21 notice to regain possession of their property.

The Scale of Enforcement in Practice

Councils are increasingly active in enforcing licensing requirements. Birmingham City Council, which launched one of the most comprehensive property licensing programmes in the country in June 2023, issued £450,000 in fines against non-compliant landlords by August 2025, having conducted over 12,000 inspections and licensed 40,000 landlords. Around one in four of its compliance inspections required landlords to take action to improve conditions.

Across London, landlords received £13 million in licensing fines between January 2018 and December 2025, according to the Mayor of London's rogue landlord database.

How Do I Know If My Property Is in a Selective Licensing Area?

The easiest way to check is to use Tuxa. Use the Tuxa property licence checker — enter any UK address to find out instantly whether it falls within a selective licensing scheme area. You can also view active licensing consultations to see which new schemes are under consideration in your area. With 128 active schemes and new ones launching regularly — you can track upcoming changes on the Tuxa consultations page, it is important to check regularly - particularly if you own property in urban areas, where nearly 70% of areas are now covered by at least one scheme.

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.