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 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 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.

Does My Durham, County Durham Property Need a Rental Licence?

Durham County Council implemented a selective licensing scheme across specific areas of the county, including parts of Durham City, which came into force on 1st April 2022 and is set to conclude on 31st March 2027. This initiative aims to improve housing conditions and management standards in privately rented properties within areas identified as experiencing issues such as low housing demand or significant anti-social behaviour. The scheme mandates that all privately rented properties within the designated Lower Super Output Areas (LSOAs) must obtain a licence from the council, ensuring landlords meet certain management and property condition standards. Approximately 30,000 properties across County Durham are estimated to be affected by this scheme, highlighting its broad impact on the local private rented sector.

The designation covers numerous LSOAs, reflecting a targeted approach to address specific neighbourhood challenges rather than a blanket city-wide application. Landlords operating within these areas are legally required to secure a licence for each rental property, unless specific exemptions apply, such as properties already licensed as Houses in Multiple Occupation (HMOs) under Part 2 of the Housing Act 2004, or those let by a registered social landlord. The council's proactive stance on selective licensing underscores its commitment to raising standards and protecting tenants, while also holding landlords accountable for their responsibilities.

Scheme Type	Area Covered	Start Date	End Date	Fee Range (approx.)
Selective Licensing	Designated LSOAs across County Durham, including parts of Durham City	1 April 2022	31 March 2027	£500 - £565 per property [1]

What Landlords Need to Know

Landlords with properties in the designated selective licensing areas of Durham City must understand the stringent requirements imposed by Durham County Council. Failure to comply with the scheme can lead to severe penalties. Operating a privately rented property without a valid licence, or allowing it to be occupied by more households or persons than authorised, can result in prosecution with an unlimited fine, or a financial penalty of up to £30,000 [1]. Furthermore, breaching any condition of a granted licence carries similar penalties. These measures are in place to ensure that all privately rented accommodations meet acceptable standards, safeguarding tenant welfare and addressing broader community concerns.

Beyond financial penalties, non-compliance has significant legal ramifications for tenancy management. Landlords of unlicensed properties are unable to serve a Section 21 notice under the Housing Act 1988, which prevents them from regaining possession of their property through the accelerated possession procedure. This effectively removes a key mechanism for ending assured shorthold tenancies. Additionally, the council, or even a tenant, can apply to the First-tier Tribunal for a Rent Repayment Order, compelling the landlord to repay up to 12 months of rent or housing benefit monies received during the period the property was unlicensed. The council also retains the power to take control of unlicensed premises by issuing an Interim Management Order, further underscoring the importance of adherence to the licensing regulations.

Landlord Checklist

1. Verify if your property is in a designated area: Utilise the Durham County Council's online postcode checker or contact their Selective Licensing Team directly to confirm if your rental property falls within one of the designated Lower Super Output Areas [2].

2. Apply for a licence: If your property is within a designated area, complete the online application for a selective licence via the Durham County Council website, providing all necessary documentation and paying the applicable fee [3].

3. Ensure property standards are met: Conduct a thorough assessment of your property to ensure it complies with all licensing conditions, including gas safety, electrical safety, fire safety, and general property maintenance standards. This includes having valid Gas Safety Certificates and Electrical Installation Condition Reports (EICR) [4].

4. Provide required documentation: Prepare and submit all documents requested during the application process, such as tenancy agreements, energy performance certificates (EPCs), and proof of landlord insurance.

5. Understand and adhere to licence conditions: Familiarise yourself with all conditions attached to your selective licence. These conditions cover various aspects of property management and tenant welfare, and breaches can lead to significant penalties [4].

6. Maintain accurate records: Keep meticulous records of all communications with tenants, maintenance works, safety certificates, and licence-related documents for inspection by the council.

7. Stay informed of scheme updates: Regularly check the Durham County Council website for any updates or changes to the selective licensing scheme, as requirements can evolve.

The Secretary of State confirmed on 30th November 2021 that the designations shall come into force on 1st April 2022 and shall cease to have effect five years after such date, namely 31st March 2027, or earlier if the Council revokes the scheme under Section 84 of the Act [1]. This means landlords must ensure compliance throughout this defined period.

Understanding and adhering to the selective licensing requirements in Durham is crucial for landlords to avoid penalties and ensure legal compliance. For further information on property licensing across the UK, please visit our comprehensive guide to UK Property Licensing.

[1] Durham County Council. (2021). Notice of Designation of an area for Selective Licensing. Available at: https://www.durham.gov.uk/media/42212/Notice-of-Designation-of-an-area-for-Selective-Licensing/pdf/NoticeDesignationOfAnAreaForSelectiveLicensing.pdf

[2] Durham County Council. Selective licensing of privately rented properties. Available at: https://www.durham.gov.uk/selectivelicensing

[3] Durham County Council. Property Licencing. Available at: https://propertylicensing.durham.gov.uk/

[4] Durham County Council. (2021). Selective Licensing Conditions. Available at: https://www.durham.gov.uk/media/37779/Selective-licensing-conditions/pdf/SelectiveLicensingConditions.pdf

Does My Durham, County Durham Property Need a Rental Licence?

What Landlords Need to Know

Landlord Checklist

Check your property in Durham, County Durham

Licensing guides

Does my rental property need a licence?

What is selective licensing?

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