Understanding selective licensing

We have published this free guide to help you understand more about selective landlord licensing schemes.

Part III of the Housing Act 2004 enables councils to implement a selective licensing scheme covering private rented properties within a defined geographical area. 

Whilst mandatory HMO licensing and additional licensing are restricted to Houses in Multiple Occupation (HMOs), selective licensing schemes extend licensing to all private rented homes occupied by a single household or two unrelated sharers within the designated area. 

Can my council introduce a selective licensing scheme?

A selective licensing scheme can only be introduced if there are problems with low housing demand or significant and persistent problems of anti-social behaviour linked to private rented homes in the area. 

The criteria were widened in 2015 to include areas with a high proportion of private rented properties where there are concerns about poor housing conditions, migration, deprivation or crime. 

Any decision to implement a selective or additional licensing scheme must be consistent with the council’s housing strategy and must be part of a coordinated approach for dealing with homelessness, empty homes and anti-social behaviour. The council must be satisfied that there are no other courses of action that might provide an effective remedy and that the introduction of a licensing scheme will significantly assist in dealing with the problem. 

Before introducing a selective licensing scheme, the council must take reasonable steps to consult with everyone affected by the designation for a minimum of 10 weeks. 

Once a decision has been made to implement a selective licensing scheme, the council must make a scheme designation and publicise the scheme for at least three months before it comes into force. 

Which councils have introduced selective licensing?

The London Property Licensing website provides information about every mandatory HMO, additional and selective licensing scheme in London. 

As of November 2025, 60% of London Boroughs have implemented one or more selective licensing schemes. Click on the ‘Select Borough’ link at the top left of this page and choose a borough from the drop down list to find out which property licensing schemes have been implemented.

If your property is based outside of London, you will need to check your local council’s website. 

How large are selective licensing schemes?

Every selective licensing scheme is different. For example, in Barking & Dagenham, their selective licensing scheme extends borough wide, whilst in Hammersmith and Fulham their selective licensing scheme is restricted to just 24 streets (correct as of November 2025).

Are there any selective licensing exemptions?

Yes there are various selective licensing exemptions. You do not need a selective licence if:

• The property is an HMO that requires licensing under a mandatory HMO or additional licensing scheme;
• The tenancy or licence has been granted by a registered social landlord under Part I of the Housing Act 1996;
• The property is subject to an Interim or Final Management Order under Part 4 of the Housing Act 2004 (i.e. the council have taken over the management of the property);
• The property is covered by a temporary exemption notice; or
• The property is occupied under an exempt tenancy or licence, as defined in the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006.

Whilst this is not a comprehensive list, examples of some of the exempt tenancies or licences include:

• Any property subject to a housing prohibition order;
• Certain tenancies associated with business premises, Licensing Act 2003 premises, agricultural land or agricultural holdings;
• Buildings managed by a local housing authority, police or fire & rescue authority or a health service body;
• Buildings already regulated under certain other statutory provisions (Schedule 1 to SI 2006 Number 373)
• Certain student halls of residence;
• Holiday homes; and
• Buildings where an occupant shares any accommodation with the landlord or a member of the landlord’s family. 

What are the compliance risks if I don’t apply?

If a landlord or managing agent fails to apply for a selective licensing without a reasonable excuse, they can be issued with a summons and prosecuted in the Magistrates Court with the risk of an unlimited fine.

Alternatively, the council can issue the landlord and/or managing agent with a civil financial penalty of up to £30,000. 

The tenants can apply for a rent repayment order to claim back up to 12 months rent whilst the property was unlicensed. This will soon be extended to two years under the Renters Rights Act 2025. 

Need further advice and support?

We can offer a 30-minute telephone consultation to answer your questions and provide expert advice (information here). 

Following an initial consultation, we can offer further support, including preparing written licence representations, problem solving and handling First-tier Tribunal appeals. 

We also offer a fixed price licence application handling service (information here) but have limited capacity. Other companies offering a licence application handling service can be found in our Landlord Suppliers Directory here.

You can read our many five star client reviews on Trust Pilot.

We hope you have found our guide to selective licensing useful. It is important to note is not legal advice and you may want to refer to our disclaimer below.

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