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Selective licensing: what it is, how to check your area and what landlords must do

Selective licensing explained for England: the Housing Act 2004 conditions, how long a scheme lasts, who needs a licence and how to check a postcode.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 8

What selective licensing is

General information, not advice. GOV.UK's guidance for local authorities, updated on 16 December 2024, says that under Part 3 of the Housing Act 2004 (section 80) a council can designate all or part of its area so that privately rented homes there must be licensed. Landlords need a licence for each privately rented property in the designated area, subject to exemptions. The guidance applies to England. We read it on 4 November 2026.

It is different from the licence for a house in multiple occupation (HMO), which is about the type of property and how many people share it. Selective licensing is about the area.

Part 2 of 8

When a council can introduce a scheme

The guidance says the area must be experiencing one or more of these:

low housing demand, or likely to become so
a significant and persistent problem of anti-social behaviour
poor housing conditions
high levels of migration
high levels of deprivation
high levels of crime

For poor conditions, migration, deprivation and crime, the area must also have a high proportion of private rented housing, which GOV.UK puts at nationally about 19 percent of stock. The council must show that no practical, beneficial alternative exists.

Part 3 of 8

How long a scheme lasts

A designation may last up to 5 years (section 84(2)). It cannot take effect until 3 months after it is made, and that start can be delayed by up to a further 3 months. Because schemes are time-limited, a property that needs a licence this year may not in a few years, and the reverse can happen.

Part 4 of 8

The 2024 change to approval

From 23 December 2024 the General Approval 2024 applies. Councils no longer need Secretary of State confirmation before bringing in a scheme of any size. They must still meet the Part 3 requirements and consult for at least 10 weeks, including the mayor where applicable, and must provide data on the scheme to the department.

Part 5 of 8

Comparing the main licence types

Scheme type	Who needs it	Set by	Source
Mandatory HMO licence	Landlords of a property rented to 5 or more people from more than one household, who share facilities	National rules, applied by the council	GOV.UK: HMO licence
Selective licensing	Landlords of privately rented homes in a designated area	The council, for a defined area and up to 5 years	GOV.UK: selective licensing guide
Smaller HMOs	May need a licence depending on the area	The council	GOV.UK: HMO licence

HMOs that must be licensed under Part 2 of the Act are excluded from selective licensing, as is accommodation let by a registered provider of social housing. Other exemptions follow the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006.

Part 6 of 8

Fees, conditions and penalties

The selective licensing guidance does not set fee levels. It says the proposed fee structure should be included in the council's consultation, and that councils should report fee details when a scheme starts. The fee is therefore whatever your council sets. Licence conditions are also set locally, and the guidance gives examples such as acting on tenants' anti-social behaviour, preventing overcrowding and making properties safer against intruders.

The guidance page we read does not give penalty amounts for failing to licence a selective licensing property. For comparison, the GOV.UK HMO page says renting out an unlicensed HMO can result in an unlimited fine, and that a HMO licence lasts a maximum of 5 years with the fee set by the council. Do not assume the same figures apply to selective licensing. Ask the council what applies. Our HMO licence cost guide covers the HMO side.

Part 7 of 8

How to check whether an address is in a scheme

There is no single national list that we have read. Search your council's website for "selective licensing" or "private rented property licensing", which should show the designated streets or wards, the start and end dates and the fee. If the website is unclear, ask the council's housing or private sector housing team by email so you have a written answer.

Part 8 of 8

Why it matters when you sell or buy a tenanted home

If you are selling a rented property, a buyer's solicitor may ask whether it is in a licensing area and, if so, for the licence and any conditions. A licence is held by the landlord for a property, so a buyer should ask what happens on a change of ownership. Our guide to selling a tenanted property explains the sale process, and the landlord keep or sell tool helps weigh your options. For HMOs, the HMO calculator is also available.

This page is general information, not advice. Check your council's current scheme before you let or sell.

Our take

Check for a licensing area before you let or sell

Selective licensing is set by the council for a defined area and for up to five years, so the answer can change. The common mistake is to assume a national rule or national fee. Fees and conditions are local, and there is no single national list, so ask the council in writing.

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Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

What is selective licensing?

A council scheme under Part 3 of the Housing Act 2004 requiring landlords of privately rented homes in a designated area to hold a licence for each property.

How do I know if my area has selective licensing?

Check your council's website for private rented property licensing, or ask its housing team in writing. The designated area, dates and fee are set locally, so there is no single national answer.

How long does a selective licensing scheme last?

GOV.UK says a designation may last up to 5 years. It cannot take effect until 3 months after it is made, and that can be delayed by up to a further 3 months.

How much does a selective licence cost?

The GOV.UK guidance does not set a fee. Each council sets its own and consults on it before a scheme starts, so ask the council that covers the property.

Is selective licensing the same as an HMO licence?

No. A mandatory HMO licence applies to a property rented to 5 or more people from more than one household. Selective licensing applies to privately rented homes in a designated area, and HMOs licensed under Part 2 are excluded.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.