Selective Licensing: Does Your Property Need a Licence?

Selective licensing allows local councils to require all privately rented properties in a designated area to be licensed — not just HMOs. If your property falls within a selective licensing area and you don't have a licence, you could face a fine of up to £30,000.

How it works

Under Part 3 of the Housing Act 2004, councils can designate areas where all private landlords must apply for a licence. This is separate from mandatory HMO licensing — selective licensing applies to standard single-let properties too.

Why councils introduce it

Selective licensing is typically introduced in areas with:

• Low housing demand or significant deprivation
• High levels of anti-social behaviour
• Poor property conditions
• High proportions of private rented stock
• High levels of crime, migration, or deprivation

What you need to do

• Check if your property is in a selective licensing area — search your council's website or contact their private sector housing team
• Apply for a licence — fees vary by council (typically £500-£900 for 5 years)
• Meet the conditions — the licence will require you to maintain the property to a certain standard, provide certificates (Gas Safety, EICR), and respond to complaints
• Display the licence — some councils require you to display it in the property

Penalties for non-compliance

• Civil penalty: Up to £30,000 per offence
• Criminal prosecution: Unlimited fine on conviction
• Rent Repayment Order: Tenants can apply to a tribunal to recover up to 12 months' rent if you operated without a licence
• Possession risk: Licensing breaches can undermine possession action and expose you to enforcement

Councils with active schemes

Over 60 councils currently operate selective licensing schemes, including parts of Liverpool, Newham, Croydon, Nottingham, Hull, Middlesbrough, and Blackpool. Schemes are area-specific — you may have one property in a licensed area and another in the same borough that isn't.

How to check

The simplest approach: search "[your council name] selective licensing" or call the council's housing team directly. Most councils have an interactive map showing which streets are covered.

Tracking in Tendmere

Add selective licensing as a compliance item on affected properties. Set the expiry date (typically 5 years), upload the licence document, and Tendmere will remind you when renewal is due.