What is selective licensing?
Selective licensing is a council-operated scheme that requires all private landlords in a designated area to hold a licence, regardless of the size or type of their property. It was introduced under Part 3 of the Housing Act 2004 and has since been adopted by over 70 councils across England.
How selective licensing works
A council can designate an area for selective licensing if it meets one or more statutory conditions: low housing demand, significant anti-social behaviour, poor property conditions, high levels of migration, or high levels of deprivation. Once designated, every privately rented property in that area must be licensed. Landlords must apply for a licence, pay a fee, and meet minimum management standards. Licences are typically valid for five years.
Who needs a selective licence?
Any landlord renting out a property within a designated selective licensing area must hold a licence. This includes individual landlords, companies, and letting agents acting as landlords. Properties managed by registered social landlords and certain other categories are exempt. The licence is property-specific, not person-specific — if you own three properties in a selective licensing area, you need three licences.
Selective licensing vs HMO licensing
Selective licensing covers all private rented properties in a designated area, including single-family homes and flats. HMO licensing only applies to Houses in Multiple Occupation — properties where three or more unrelated people share facilities. A property can be subject to both selective licensing and HMO licensing simultaneously.
Penalties for non-compliance
Renting a property in a selective licensing area without a licence is a criminal offence under the Housing Act 2004. Councils can issue a civil penalty of up to £30,000 per property, or prosecute the landlord in a magistrates' court where there is no upper limit on fines. Tenants can also apply to the First-tier Tribunal for a Rent Repayment Order requiring the landlord to repay up to 12 months of rent.
Frequently asked questions
How do I know if my area has selective licensing?
You can check instantly using the Tuxa search tool. Enter your property address and Tuxa will tell you whether it falls within an active selective licensing area, which council operates the scheme, and when it expires.
Can a council introduce selective licensing without government approval?
Councils can designate selective licensing areas covering up to 20% of their private rented housing stock without Secretary of State approval. Larger designations require central government sign-off. 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.
What happens when a selective licensing scheme expires?
When a scheme expires, landlords no longer need a licence unless the council renews or replaces the scheme. Councils must go through the same designation process to renew a scheme. Tuxa tracks scheme expiry dates and will show when a scheme is due to end.