Selective Licensing: Which Councils Require It and How to Apply

Selective licensing is one of the most misunderstood landlord obligations in England. Unlike mandatory HMO licensing, which applies based on the type of property, selective licensing applies based on where your property is located. If your single-let property sits within a designated area, you need a licence — even if it is a straightforward one-bedroom flat with a single tenant.

Here is what you need to know.

What is selective licensing?

Selective licensing is a power given to local councils under Part 3 of the Housing Act 2004 (sections 80-84). It allows councils to require landlords in a specific area to obtain a licence for all privately rented properties in that area — not just HMOs.

The key word is "selective." It does not apply nationwide. Each council must designate specific areas (or the whole borough) and get approval. A licence granted by one council does not cover properties in another council's area.

When can councils introduce selective licensing?

A council can introduce a selective licensing scheme if it can demonstrate that the designated area meets one or more of the following criteria:

Low housing demand — the area is or is likely to become an area of low demand, and selective licensing would contribute to improving conditions
Anti-social behaviour — the area is experiencing significant and persistent anti-social behaviour, and some private landlords are failing to manage their properties effectively
Poor property conditions — a significant proportion of properties in the area are in poor condition
High levels of deprivation — the area has high levels of deprivation affecting residents
High levels of migration — the area has experienced a significant influx of migration, creating pressure on housing and services
High levels of crime — the area is experiencing high levels of crime affecting residents or businesses

Schemes that cover more than 20% of a council's geographical area or more than 20% of its privately rented housing stock require Secretary of State confirmation. Smaller schemes can be introduced by the council alone, subject to a mandatory consultation period (minimum 10 weeks).

Each scheme runs for a maximum of 5 years, after which the council must apply again if it wants to renew.

How to check if your area is covered

There is no single national register that lists every selective licensing area in real time. You need to check directly:

Your council's website — search for "selective licensing" on the council's site. Most councils with active schemes have a dedicated licensing page listing the wards or streets covered
GOV.UK selective licensing register — the government maintains a register of confirmed schemes that required Secretary of State approval. Note: schemes that did not need Secretary of State approval may not appear here
Contact the council's private sector housing team directly — if you cannot find the information online, phone or email the council. Give them the property address and they will confirm whether it falls within a designated area
Property licensing registers — some councils publish searchable registers showing which properties are licensed. If your address appears (or should appear), you know the scheme applies

If you are buying a rental property, check for selective licensing as part of your due diligence. The obligation transfers to the new owner on completion — if the previous owner had a licence, it does not automatically pass to you. You will need to apply for a new one.

The application process

The process varies slightly between councils, but the typical steps are:

1. Confirm the scheme applies to your property

Not every property within a selective licensing area requires a licence. Social housing, properties let by registered providers, and some other categories may be exempt. Check the council's scheme details.

2. Complete the application form

Most councils now accept online applications. You will need to provide:

Your details (name, address, contact information)
The property address
Details of the property (number of rooms, storeys, current occupancy)
Details of the proposed licence holder and property manager
A declaration that the proposed licence holder is a "fit and proper person"
Gas Safety Certificate (current CP12)
EICR (satisfactory, within validity)
EPC
Evidence of smoke and CO alarm compliance
Floor plan (some councils)
Tenancy agreement (some councils)

3. Pay the fee

Fees are set by each council individually. Typical costs range from £500 to £800 for a 5-year licence, though some councils charge more. Many councils split the fee into two parts:

Part 1 — payable on application (covers processing costs)
Part 2 — payable when the licence is granted (covers enforcement and compliance monitoring costs)

Some councils offer early-bird discounts for applications submitted within a set period after the scheme launches. Discounts of 20-30% are common, so it pays to apply promptly.

4. Wait for processing

Processing times range from a few weeks to several months, depending on the council's capacity. While your application is being processed, you are typically treated as having applied (which is a defence against prosecution for operating without a licence, provided you applied before the deadline).

5. Receive licence conditions

When the licence is granted, it comes with conditions. These vary by council but commonly include:

Maintaining valid gas and electrical safety certificates
Keeping the property in good repair
Managing anti-social behaviour by tenants
Providing written tenancy agreements
Keeping the property free from hazards assessed under HHSRS
Notifying the council of changes in occupancy or management
Attending landlord training (some councils require this)

You must comply with all conditions for the duration of the licence. Breaching a condition is a separate offence.

Penalties for not having a licence

Operating a rental property without a selective licence in a designated area is a serious matter. The penalties are the same as for operating an unlicensed HMO:

Civil penalties

Councils can impose a civil penalty of up to £30,000 as an alternative to prosecution. The penalty amount depends on the severity of the offence, the landlord's history, and the council's penalty policy. First-time offences for otherwise compliant landlords may attract penalties of £5,000-£10,000, but repeat offenders or landlords with poorly maintained properties can face the full £30,000.

Prosecution

Alternatively, councils can prosecute. A conviction for operating without a licence carries an unlimited fine in the Magistrates' Court. A criminal record can also affect your ability to hold other licences and may lead to a banning order.

Rent Repayment Orders (RROs)

Under the Housing and Planning Act 2016, tenants (or the council on behalf of tenants receiving housing benefit or Universal Credit) can apply to the First-tier Tribunal for a Rent Repayment Order. The tribunal can order you to repay up to 12 months' rent — or the housing benefit/Universal Credit housing element paid during the period when the property was unlicensed.

This is not theoretical. Tribunals regularly make these orders, and some tenants' rights organisations actively help tenants identify unlicensed properties and pursue RROs.

Section 21 restriction

You cannot serve a valid Section 21 notice while the property requires a licence that you do not hold. This means you lose the ability to use the no-fault eviction process until you obtain the licence. Even after you get the licence, there may be a waiting period before you can serve a valid notice (depending on the council and the specific scheme rules).

Selective licensing vs HMO licensing

These are separate regimes, and one does not replace the other:

	Selective licensing	Mandatory HMO licensing
Legislation	Housing Act 2004, Part 3	Housing Act 2004, Part 2
Applies to	All private rentals in designated areas	HMOs with 5+ tenants from 2+ households
Trigger	Location of the property	Type and occupancy of the property
Typical cost	£500-£800 per 5 years	£500-£1,500+ per 5 years
Maximum civil penalty	£30,000	£30,000

If your HMO is in a selective licensing area, you may need both a mandatory HMO licence and a selective licence. Check with your council — some councils waive the selective licence requirement for properties that already hold an HMO licence, but this is not universal.

What to do right now

Check whether your property is in a selective licensing area — use the methods described above
If it is, apply immediately — do not wait for the council to contact you. The obligation is on you to identify that a licence is needed and to apply
Gather your compliance documents — you will need a current gas safety certificate, EICR, and EPC as part of the application. If any of these are missing or expired, arrange them before applying
Budget for the fee — £500-£800 spread over 5 years is £100-£160 per year, a modest cost compared to a £30,000 penalty or a 12-month Rent Repayment Order
Comply with licence conditions — once granted, read the conditions carefully and set up systems to ensure ongoing compliance

Use our compliance checklist to confirm you are meeting all your obligations, not just licensing.

How DueProper will help

DueProper will track your licensing status and conditions alongside your other compliance obligations. Set reminders for licence renewal, store your licence documents, and keep an audit trail that demonstrates ongoing compliance with conditions.

Coming soon — join the waitlist for early access.

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Free tools

Landlord Fine Calculator — see the cost of operating without a licence
Rental Compliance Score — check your overall compliance health

This article is for information only and does not constitute legal advice. Selective licensing schemes vary by council area and may change. Always check with your local authority and verify current legislation at legislation.gov.uk.