Selective licensing is a licensing regime for private landlords that applies to a specified area designated by the relevant Local Housing Authority (LHA).
Local Authorities may designate specific areas for selective licensing based on factors such as: low housing demand, anti-social behaviour, high levels of crime and high levels of migration.
Once an area is designated for selective licensing, any rental property in the designated area (except certain exempt properties) will have to apply for a licence.
Selective licensing can apply to any type of rental property - not just HMOs.
How to find out if my property needs a licence
There is no central directory of property licensing schemes so you will need to contact your local council to find out whether your property needs a licence.
If your property is in London then you can use this directory to check whether you need a selective licence.
Applying for a licence
An application for a licence under a selective licensing scheme must be made by a landlord to the relevant LHA.
A landlord must apply for a licence for each property they own and each licence can only relate to a single property.
Requirements for the licence
LHAs must consider, among other things, whether the proposed licence holder "is a fit and proper” person.
In deciding this, the LHA will consider whether the proposed licence holder has:
- Committed any offence involving fraud or other dishonesty, or violence or drugs
- Practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins or disability
- Contravened any provision of the law relating to housing or landlord and tenant law
- A banning order under section 16 of the Housing and Planning Act 2016 imposed against them
Penalties for not having a licence
There are a range of possible sanctions if a licence has not been obtained or the conditions of a licence have been breached. These include:
- Criminal conviction and an unlimited fine
- Civil penalty and fine up to £30,000
- Rent repayment order for a period where the property has been let unlicensed when it should have been
- Banning Order
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.