What is selective licensing?
Selective licensing is a scheme under Part 3 of the Housing Act 2004 that allows local councils in England to require all private landlords in a designated area to obtain a licence — regardless of whether the property is an HMO or a single-let.
When does selective licensing apply?
A council can designate a selective licensing area if it is experiencing one or more of the following conditions:
- Low housing demand
- Significant and persistent anti-social behaviour
- Poor property conditions
- High levels of migration
- High levels of deprivation
- High crime levels
Schemes covering more than 20% of a council's geographic area or 20% of its privately rented properties require confirmation from the Secretary of State.
What does it cost?
Licence fees vary by council but typically range from £450 to £1,000 per property. Licences last for up to 5 years. Many councils offer early bird discounts of 10-30% if you apply within the first few months of a new scheme.
What happens if I don't get a licence?
Operating without a required licence is a criminal offence. Penalties include:
- Civil penalty of up to £30,000 per offence
- Criminal prosecution with an unlimited fine
- Rent Repayment Order (RRO)— tenants can claim back up to 12 months' rent through the First-tier Tribunal
- Section 21 restriction — you cannot serve a valid Section 21 notice on an unlicensed property
How do I check if my property needs a selective licence?
Use our free postcode checker to find out instantly if your property is in a selective licensing area. You can also browse our council directory to see which councils operate schemes.
How many councils have selective licensing?
As of 2026, approximately 70-90 councils in England operate active selective licensing schemes. The number has grown significantly since the Housing Act 2004, particularly after the criteria were expanded in 2015.
Notable councils with borough-wide or city-wide schemes include Newham, Waltham Forest, Barking and Dagenham, Croydon, Nottingham, and Salford. Many other councils operate schemes covering specific wards or areas.
What conditions come with a selective licence?
Selective licences typically include 20-40 conditions covering:
- Property management standards
- Tenant referencing requirements
- Anti-social behaviour procedures
- Gas and electrical safety
- Smoke and carbon monoxide alarms
- Waste management
- Property condition and maintenance