Government have lifted restrictions on implementing large selective licensing schemes

Friday, January 17th, 2025 - MHCLG

In a decision made just before the Christmas holiday, the government have relaxed the rules for implementing new selective landlord licensing schemes in England as part of their devolution plans.

Since April 2015, local authorities have been unable to implement new selective licensing schemes covering over 20% of the local authority’s area or over 20% of privately rented homes without seeking approval from the Secretary of State in the Ministry of Housing, Communities and Local Government (MHCLG).

Whilst permission for larger selective licensing schemes was still possible, it involved a lengthy application process and scrutiny of the business case by civil servants. Some applications submitted by local authorities were successful and some were not.

Over recent years, this further stage in the selective licensing scheme approval process meant some local authorities implemented smaller schemes within the 20% threshold for local decision making.

20% threshold removed

On 23 December 2024, Matthew Pennycook MP, Minister of State for Housing and Planning signed a new Licensing of Houses in Multiple Occupation and Selective Licensing of other Residential Accommodation (England) General Approval which came into effect with immediate effect.

The requirement for larger selective licensing scheme approvals to be scrutinised by central government has been removed. Selective licensing schemes covering up to 100% of private rented homes can now be decided locally subject to meeting the statutory requirements.

The only condition now imposed by the General Approval is that the local authority must consult persons likely to be affected by the scheme for not less than 10 weeks. 

Best practice guidance

Whilst not a legal requirement, the Minister has published best practice guidance alongside the General Approval. 

The Minister has requested that local authorities submit data about their selective licensing scheme in accordance with any guidance that might be published, publish any selective licensing scheme review on the council’s website and consult with the mayor in any mayoral strategic authority areas about any proposed selective licensing scheme.

The General Approval does not impose the same best practice guidance on additional licensing schemes and the reasons for that are unclear. 

Selective licensing in London

According to research by London Property Licensing, just over half of London Boroughs currently operate selective licensing schemes.

This includes Hammersmith and Fulham where the scheme covers 24 streets, Bexley where their new selective licensing scheme covers one ward, through to Brent where the scheme applies borough wide except for the Wembley Part ward. 

It remains to be seen whether there will be an uplift in new selective licensing schemes or an expansion of existing selective licensing schemes, as a result of this policy change.

The London Property Licensing website contains free guides about property licensing and HMO planning restriction covering every London borough. Simply click ‘Select Borough’ at top left of this webpage and select the borough you are interested in.

For all the latest news and events, you can sign up for the free London Property Licensing newsletter here.