Selective Property Licensing Across England

Selective property licensing has rapidly evolved from a local housing tool into a key national strategy improving rental standards. Once reserved for small “problem” areas, these schemes are now being adopted by councils across England to improve housing standards and curb antisocial behaviour.

This surge began in December 2024, when the government scrapped the requirement for councils to seek Secretary of State approval before introducing new designations. Since then, applications have multiplied, with local authorities increasingly using licensing to regulate the private rental sector and protect tenants.

Understanding Selective Property Licensing

Selective licensing gives councils the authority to require landlords in specific neighbourhoods to obtain a licence for each rental property they manage. It operates separately from HMO licensing (which covers shared houses with multiple tenants) and can apply to any privately rented home – from studio flats to family houses.

Local authorities usually introduce these schemes in areas struggling with persistent problems such as low housing demand, poor property conditions, antisocial behaviour, high crime, or economic deprivation. The overall goal is to ensure landlords maintain safe, well-managed homes and contribute positively to their communities.

Who Needs a Licence?

Whether a landlord needs a selective licence depends entirely on the location of the property. Even two houses on the same street can fall under different rules if only part of the postcode is designated.

The simplest way to confirm requirements is to visit the local council’s housing webpage, where all active licensing areas are listed. Alternatively, landlords can contact the council’s housing or private sector team for clarification.

Failing to check puts landlords at risk, as councils do not accept ignorance of a scheme’s boundaries as a valid defence.

Where Selective Property Licensing Schemes Operate?

Selective licensing has spread widely across England, covering both urban and suburban regions. In London, boroughs such as Lambeth, Tower Hamlets, Newham, and Westminster already operate multiple schemes. Beyond the capital, councils in Nottingham, Durham, Reading, Salford, Birmingham, and Liverpool have also implemented large-scale designations, with more local authorities expected to follow in 2025.

The result is a complex national patchwork. For landlords with properties in different areas, staying compliant can be a real challenge – but one that’s increasingly unavoidable.

Applying for a Licence

Each council sets its own application process and documentation standards, but landlords can expect to provide several key certificates and details, including:

• Gas Safety Certificate (for all supplied gas appliances)
• Electrical Installation Condition Report (EICR)
• Energy Performance Certificate (EPC)
• Smoke and carbon monoxide alarm certification
• Fire safety measures and floor plans
• Portable Appliance Testing (PAT) certificates
• Tenancy agreements and contact details for all responsible parties
• Evidence of tenant referencing and maintenance procedures

License fees vary significantly – usually between £400 and £1,300 for a five-year period. Some councils permit payment in instalments, while accredited or energy-efficient landlords may qualify for discounts.

Because councils retain discretion, landlords are encouraged to apply early and ensure all documents are valid at the time of submission.

The Cost of Non-Compliance in Selective Property Licensing

Failing to obtain the required licence is a criminal offence. Financial penalties can reach £30,000 in England (and up to £50,000 in Scotland). Councils can also impose Rent Repayment Orders (RROs), requiring landlords to return up to 12 months of rent to tenants.

Severe or repeat offenders face banning orders, which prohibit them from letting property in the future. In extreme cases, councils can issue management orders, transferring control of the property to the authority itself.

Non-compliance can also invalidate buy-to-let mortgage terms and landlord insurance, leaving property owners financially exposed.

Keeping Up with the Rules

Because councils manage licensing independently, no single national register records all schemes. Each council runs its own process, updates boundaries independently, and may introduce new schemes without prior notice.

This fragmented system makes it difficult for landlords – especially portfolio owners – to keep track. To stay compliant, experts recommend that landlords:

• Regularly check their local council’s announcements and housing pages.
• Subscribe to landlord associations or letting agency newsletters.
• Follow updates on platforms such as , which tracks designations in the capital.

Being proactive is crucial; once a new scheme is live, landlords are expected to comply immediately.

The Renters’ Rights Bill: What’s Changing

When the Renters’ Rights Bill comes into force (anticipated in early 2026), it will significantly raise the stakes for landlords operating without a licence.

Key changes include:

• Extended Rent Repayment Orders – doubling the maximum claim from 12 to 24 months, meaning tenants could reclaim up to two years’ rent.
• Harsher penalties for non-compliance, giving councils greater enforcement power.
• The creation of a national landlord database, designed to complement local schemes by helping authorities identify unlicensed properties more effectively.

Importantly, the Bill also targets rent-to-rent arrangements. Previously, superior landlords (property owners who lease to management companies) were shielded from licensing breaches committed by intermediaries. Under the new rules, they will become jointly liable for any failures – including fines and rent repayment orders.

This shift will close a long-criticised loophole and push landlords to vet managing agents more carefully.

Why Staying Compliant with Selective Property Licensing Matters

Selective licensing is no longer limited to small “pilot” zones – it is now a cornerstone of England’s housing enforcement strategy. Councils are using these powers to raise standards, reduce blight, and ensure tenants live in safe, well-managed homes.

For landlords, that means compliance is not just about avoiding fines; it’s about protecting investments, maintaining mortgage and insurance validity, and demonstrating professional credibility in a tightening regulatory environment.

Final Thoughts

As selective licensing continues to expand, private landlords must stay alert, organised, and responsive to local authority updates. The trend continues to accelerate, and with the Renters’ Rights Bill on the horizon, proactive compliance becomes more important than ever.

Checking property designations, keeping documentation current, and building relationships with local housing teams can make the difference between smooth operations and costly penalties.

In today’s climate, knowledge is as valuable as compliance – and both are essential for navigating England’s rapidly evolving rental landscape.