Selective Licensing for Landlords UK 2026: Areas, Costs and Requirements

Selective licensing is one of the most significant regulatory requirements facing private landlords in England. Under Part 3 of the Housing Act 2004, local authorities can designate areas where all privately rented properties must be licensed, regardless of the property type or number of occupants. Unlike mandatory HMO licensing, which targets houses in multiple occupation, selective licensing can apply to any privately rented property in the designated area.

As of 2026, there are over 60 active selective licensing schemes across England, covering hundreds of thousands of rental properties. The number of schemes has grown steadily since the criteria were broadened in 2015, and several major councils are in the process of renewing or expanding their schemes. For landlords, the consequences of operating without a licence are severe: unlimited fines, rent repayment orders, and banning orders.

This guide explains how selective licensing works, which areas currently require licences, the application process and costs, the conditions attached to licences, and the penalties for non-compliance. Whether you already have properties in a licensed area or are considering a purchase, understanding selective licensing is essential.

How Selective Licensing Works

Selective licensing is governed by Part 3 of the Housing Act 2004. It allows local housing authorities to designate areas (or the whole borough) where all privately rented properties require a licence from the council. The stated purpose is to address problems in the private rented sector such as low housing demand, antisocial behaviour, poor property conditions, high levels of migration, high deprivation, or high crime.

A local authority wishing to introduce selective licensing must conduct a public consultation lasting at least 10 weeks. If the scheme covers more than 20% of the area's geographical boundary or more than 20% of privately rented homes, the authority must obtain confirmation from the Secretary of State for Levelling Up, Housing and Communities. Schemes that fall below these thresholds can be approved by the council itself.

Each scheme runs for a maximum of five years. At the end of the five-year period, the authority must apply afresh if it wishes to continue the scheme. Many councils are currently in their second or third cycle of selective licensing.

Designation Criteria

Local authorities can designate selective licensing areas based on one or more of six criteria set out in the Selective Licensing of Houses (Additional Conditions) (England) Order 2015. The criteria are deliberately broad, which is why the number of schemes has grown significantly.

Councils typically compile extensive evidence bases including data on crime, complaints, property conditions (Housing Health and Safety Rating System assessments), deprivation indices (Index of Multiple Deprivation), and Private Rented Sector stock surveys. The evidence base is published as part of the consultation process.

Major Active Schemes Across England

The following table summarises some of the major active selective licensing schemes in England as of early 2026. This is not exhaustive — there are over 60 schemes in operation. Always check directly with the local authority for the most current information.

Application Process and Costs

The application process varies by council, but most schemes operate on a similar basis. You apply online through the council's property licensing portal, providing details of the property, the licence holder (usually the landlord), any managing agent, and the proposed occupancy limits.

Application fees typically range from £500 to £1,000 per property. Many councils offer early-bird discounts (10-20% off) for applications submitted within the first few months of a new scheme. Late applications, particularly those made after enforcement action has begun, often attract significantly higher fees.

What You Need for Your Application

• Current gas safety certificate (CP12)
• Electrical Installation Condition Report (EICR) — satisfactory
• Energy Performance Certificate (EPC) — minimum rating E
• Valid buildings insurance certificate
• Floor plan of the property
• Details of the licence holder (including DBS check if required)
• Details of any managing agent
• Tenancy agreement template
• Evidence of smoke and carbon monoxide alarms
• Confirmation of deposit protection

Processing times vary enormously. Some councils process applications within 6-8 weeks, while others take 6-12 months or longer, particularly during the early stages of a new scheme when applications flood in. You can legally let the property while your application is pending, provided you applied before the scheme start date or within any grace period.

Fee Structures

Following the Supreme Court decision in R (Gaskin) v Richmond LBC [2018], licence fees must be split into two parts: Part A (payable on application, covering processing costs) and Part B (payable on grant of licence, covering enforcement and compliance costs). This means you pay Part A upfront and Part B only if the licence is granted.

Licence Conditions

Every selective licence comes with mandatory and discretionary conditions. Mandatory conditions are set by Schedule 4 of the Housing Act 2004 and apply to all licences. Discretionary conditions are set by the individual local authority and vary between schemes.

Mandatory Conditions

• Produce a current gas safety certificate annually to the council on demand
• Keep electrical appliances and furniture supplied in a safe condition and provide declarations of safety on demand
• Ensure smoke alarms are installed on each storey and kept in working order
• Ensure carbon monoxide alarms are installed in rooms with solid fuel appliances
• Supply tenants with a written statement of the terms of their tenancy
• Obtain references for prospective tenants

Common Discretionary Conditions

• Maintain the property in a reasonable state of repair externally and internally
• Deal with antisocial behaviour by tenants (warning letters, engagement with the council)
• Carry out property inspections at specified intervals (typically 6-12 months)
• Provide tenants with written information about waste disposal and recycling arrangements
• Maintain the front garden and external areas to a reasonable standard
• Notify the council of changes in tenancy within a specified period (14-28 days)
• Ensure the property meets minimum energy efficiency standards (EPC E or above)
• Attend landlord training or accreditation courses if required

Penalties for Non-Compliance

The penalties for operating a rented property without a selective licence are among the most severe in housing law. Landlords face both criminal sanctions and financial consequences that can far exceed the cost of simply obtaining a licence.

Rent Repayment Orders

Rent Repayment Orders (RROs) are a particularly costly consequence of operating without a licence. Under the Housing and Planning Act 2016, tenants or the local authority can apply to the First-tier Tribunal for an order requiring the landlord to repay up to 12 months' rent. The tribunal considers the conduct of the landlord, their financial circumstances, and whether they have been convicted of an offence. In practice, tribunals commonly award 6-12 months' rent.

Tenants do not need to wait for the council to take action. They can apply for an RRO directly to the First-tier Tribunal once they have evidence that the property should have been licensed. Housing charities and tenant advice organisations actively encourage tenants to pursue RROs, and no-win-no-fee solicitors increasingly specialise in this area.

How to Check If Your Property Needs a Licence

Checking whether your property falls within a selective licensing area is straightforward, but you need to check every time you acquire a new property or a new scheme is designated.

1. Check the local council website: Search for "selective licensing" or "property licensing" on the council website for the area where your property is located. Most councils have a dedicated licensing page with maps, postcode checkers, and application information.
2. Use the NRLA licensing checker: The National Residential Landlords Association (NRLA) maintains a national licensing checker tool that covers all known schemes across England.
3. Check government notices: New selective licensing designations are published as formal notices. The Department for Levelling Up, Housing and Communities (DLUHC) publishes confirmed schemes.
4. Contact the council directly: If in doubt, call or email the council's private sector housing team. They can confirm whether your specific property address falls within a designated area.
5. Check for upcoming schemes: Councils must consult for at least 10 weeks before introducing a scheme. Check the council's consultation pages for proposed schemes that may affect your property in the near future.

Managing Licences Across Your Portfolio

For landlords with properties in multiple licensing areas, keeping track of licence expiry dates, conditions, and renewal deadlines can be challenging. Each council has its own scheme with its own conditions, fees, and timelines. Missing a renewal deadline means you are operating without a licence, with all the penalties that entails.

Best practice is to maintain a central record of all property licences, including the licence number, issue date, expiry date, conditions, the council contact, and any upcoming renewals. Set reminders at least three months before expiry to allow time for the renewal process.