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 area or private rented stock typically require confirmation from the Secretary of State. Smaller designations can often be made locally following consultation.
Selective licensing vs other licensing schemes
| Scheme | Usually covers | Trigger |
|---|---|---|
| Selective licensing | Standard privately rented homes in designated areas | Council area designation under Part 3 |
| Additional licensing | Smaller HMOs, often 3 to 4 occupiers | Council scheme under Section 56 |
| Mandatory HMO licensing | HMOs with 5+ occupiers and 2+ households | National rules across England |
What does it cost?
Licence fees vary by council but typically range from £450 to £1,000 per property. Licences normally last for up to 5 years. Many councils offer early-application discounts if you apply soon after a scheme starts.
What happens if you do not get a licence?
Operating without a required licence is a serious offence. Potential consequences include:
- Civil penalties of up to £30,000 per offence
- Criminal prosecution with an unlimited fine
- Rent Repayment Orders where tenants can claim back up to 12 months' rent (under current law — the Renters' Rights Act 2025 may extend this to 24 months once commenced)
- Section 21 restrictions — under current law, an unlicensed property cannot usually rely on a valid Section 21 notice (Section 21 is being abolished under the Renters' Rights Act 2025)
How do you check whether a property needs one?
The safest route is:
- Check whether the postcode falls in a designated selective licensing area
- Open the council source linked from the result
- Confirm the current boundary, dates, fees, and exemptions
- Apply directly with the council if the scheme covers your property
Use our free postcode checker to see whether your property appears to sit in a selective licensing area, or browse the council directory for more detail.
How common is selective licensing?
Selective licensing is now used by a meaningful number of councils across England, with some schemes covering whole boroughs and others applying only to specific wards or neighbourhoods. The exact number changes over time as schemes expire, renew, or expand.
That is why postcode-level checking matters: two properties in the same council area may not always be treated the same way if the scheme only covers certain wards or custom areas.
What conditions usually come with a selective licence?
Selective licences often include conditions around:
- Property management standards
- Tenant referencing and anti-social behaviour procedures
- Gas and electrical safety compliance
- Smoke and carbon monoxide alarms
- Waste management and refuse storage
- Property condition and ongoing maintenance
Example councils with selective licensing
These council pages show how selective licensing looks in practice across different areas.
Nottingham City Council
East Midlands
Detailed scheme records currently shown on this council page.
Coventry City Council
West Midlands
Detailed scheme records currently shown on this council page.
Liverpool City Council
North West
Detailed scheme records currently shown on this council page.