HMO Licensing
When a property needs a mandatory or additional HMO licence, and what the council will inspect.
Learn more →England · Updated July 2026
Selective Licensing: What It Is and Whether It Applies to You
Selective licensing requires a licence for every privately rented home inside an area a council has designated, whether or not the property is an HMO. A one bedroom flat let to a single tenant needs one if the address falls inside the designation. Since December 2024 councils no longer need government sign off to designate at any size, and schemes are expanding.
Designation rules
Full exemption list
Fines and RROs
Selective licensing is a scheme under Part 3 of the Housing Act 2004 that requires a landlord to hold a licence for a privately rented property located in an area the local council has formally designated. Unlike HMO licensing, it has nothing to do with how many people live there. It applies to private lets generally, including a flat let to one person or one family.
How to tell if it applies to you: there is no national register to search. Selective licensing is designated council by council and usually street by street or ward by ward, so you must check the current designations published by the council for the specific address. Designations last a maximum of 5 years and then lapse unless renewed, so a property can move in and out of scope over time.
Why it is spreading: until December 2024 a council needed the Secretary of State to confirm any scheme covering more than 20% of its area or more than 20% of its privately rented homes. The General Approval 2024 removed that requirement on 23 December 2024. Councils must still satisfy the statutory conditions and consult for at least 10 weeks, but the size cap requiring sign off is gone.
DESIGNATION
How a Council Designates a Selective Licensing Area
A council cannot designate an area simply because it wants to. It must show the area meets at least one statutory condition and that licensing will help.
One of the statutory grounds
Low housing demand, significant and persistent anti social behaviour, poor housing conditions, high levels of migration, high levels of deprivation, or high levels of crime. The council must evidence the ground, not just assert it.
At least a 10 week consultation
The council must consult those likely to be affected, including landlords, tenants, managing agents and residents, for a minimum of 10 weeks, and show it considered the responses.
Maximum 5 years
A designation ceases to have effect after 5 years at the latest, or earlier if the authority revokes it. Councils that want to continue must run the process again, which is why schemes lapse and reappear.
Practical consequence for portfolios: because designations are local, time limited and often drawn at ward level, two properties on the same postcode can sit on opposite sides of a boundary. A portfolio spread across several councils needs the licensing position checked per property and re-checked when designations renew, not set once and forgotten.
EXEMPTIONS
What Is Exempt From Selective Licensing
Section 79 of the Housing Act 2004 applies licensing to all houses in a designated area other than those let under an exempt tenancy or licence. These are set out in the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006.
Social housing. Tenancies granted by a registered provider of social housing, or a body registered as a social landlord under Part 1 of the Housing Act 1996.
Properties already licensed as HMOs. A property licensed under the mandatory or additional HMO regimes is not separately licensable under selective licensing.
Properties subject to a prohibition order where the order is in force and has not been suspended.
Business and agricultural tenancies, licensed premises, agricultural land and agricultural holdings, being tenancies that cannot be assured tenancies under the Housing Act 1988.
Public sector accommodation managed or controlled by a local housing authority, a police or fire and rescue authority, or a health service body.
Student accommodation occupied under a relationship with a specified educational establishment, and certain buildings regulated outside the Act.
Long leases where the full term is more than 21 years and the occupier is the original tenant, a successor or a family member.
Family lettings. A tenancy granted by a family member where the occupier lives there as their only or main residence.
Holiday lets. Occupation of the property as a holiday home.
Resident landlord arrangements where the occupier shares a toilet, washing facilities, kitchen or living room with the landlord or the landlord's family.
Temporary exemption notices. If you are actively taking steps to stop a property needing a licence, for example ending a tenancy or converting the use, you can notify the council and it may serve a temporary exemption notice under section 86. It lasts 3 months from the date of service. A second notice for a further 3 months can be served only where the council decides there are exceptional circumstances, and no further notice can follow. A temporary exemption notice is not a way to defer applying.
APPLYING
How to Apply, and What It Costs
Applications go to the council that made the designation, through its own online form. There is no central portal and no standard national form. You will normally need the property address and type, the number of occupants and tenancy details, the proposed licence holder and manager, gas and electrical safety certificates, evidence of smoke and carbon monoxide alarms, and details of any relevant convictions for the fit and proper person assessment.
Fees are set by each council and vary widely. Selective licensing fees are typically lower per property than HMO licence fees, but they apply to every let in the area, so the portfolio cost can be higher. Many councils split the fee into an application part payable on submission and a grant part payable on issue, and offer discounts for early application or accreditation scheme membership. Take the figure from the council's published fee schedule for the current year.
Apply as soon as the designation takes effect. A property is unlicensed from the day the scheme starts, not from the day the council gets round to processing your form, although a valid application in progress protects you from the offence in most schemes. Do not rely on that without checking the council's own position.
ENFORCEMENT
Penalties for Letting Without a Selective Licence
Letting a property that requires a licence without one is a criminal offence, and conviction carries an unlimited fine. Councils can instead impose a civil penalty as an alternative to prosecution. The Renters' Rights Act 2025 set the maximum civil penalty at GBP 40,000 for serious, persistent or repeat breaches, with up to GBP 7,000 for initial or less serious ones.
The larger exposure is again the rent repayment order. A tenant or the council can apply to the First-tier Tribunal to recover rent already paid during the unlicensed period. The Act doubled the maximum from 12 to 24 months of rent and doubled the application window to 24 months after the offence. Landlords who have previously faced enforcement action must pay the maximum.
Unlicensed status also restricts a landlord's ability to recover possession. With section 21 abolished from 1 May 2026, possession already depends on establishing a section 8 ground, and an unlicensed property makes that materially harder.
HOW RENTALIZE HELPS
Licensing Status Held Per Property
Selective licensing is a portfolio admin problem. The rules are simple, the tracking is not, because designations differ by address and expire on their own schedule.
Licence and expiry per address
Record the licence type, council, number, conditions and expiry against each property, with reminders before renewal, so a lapsed licence does not become an unlicensed let.
Application evidence in one place
Gas, electrical and alarm certificates plus tenancy and occupancy details sit against the property, so an application or a council request is assembled rather than reconstructed.
Portfolio view by council
See which properties sit in which local authority, so when a new designation is announced you know immediately how much of the portfolio it touches.
FAQ
Selective Licensing Questions
You need a selective licence if you let a property privately and its address falls inside an area your council has formally designated, unless one of the statutory exemptions applies. The number of occupants is irrelevant, so a one bedroom flat let to a single tenant is caught in the same way as a family house. There is no national register, so you must check the current designations on your council's website for the specific address. Designations are often drawn at ward or street level, so a neighbouring property can be outside the scheme.
Additional licensing covers HMOs that fall below the mandatory 5 person threshold, typically shares of 3 or 4 people, so it is about property type. Selective licensing covers all privately rented homes in a designated area regardless of occupancy, so it is about location. Both are discretionary schemes a council chooses to designate, both last a maximum of 5 years, and a council can run both at once in overlapping areas. A property already licensed as an HMO is not separately licensable under selective licensing.
There is no national fee. Each council sets its own and the range across England is wide. Selective licence fees are usually lower per property than HMO licence fees, but because they apply to every let in the designated area the total portfolio cost is often higher. Many councils split the fee into an application part and a grant part, and offer a discount for applying early in the scheme or for belonging to an accreditation scheme. Use the council's published fee schedule for the year you are applying in.
A designation ceases to have effect after a maximum of 5 years, or earlier if the council revokes it under section 84 of the Housing Act 2004. To continue beyond that the council must run a fresh designation process, including a new consultation of at least 10 weeks. This is why schemes lapse and later reappear, and why a property's licensing position needs re-checking rather than being recorded once.
Exemptions come from section 79 of the Housing Act 2004 and the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006. They include tenancies granted by registered providers of social housing, properties already licensed as HMOs, properties under a live prohibition order, business and agricultural tenancies, licensed premises, accommodation managed by local authorities, police, fire or health bodies, certain student accommodation, long leases over 21 years, lettings to family members, holiday lets, and arrangements where the occupier shares living space with a resident landlord.
Until 23 December 2024, a council needed confirmation from the Secretary of State before introducing a scheme covering more than 20% of its area or more than 20% of its privately rented homes. The General Approval 2024 removed that requirement, so councils can now designate schemes of any size on their own authority, provided they meet the conditions in Part 3 of the Housing Act 2004 and consult for at least 10 weeks. Combined with wider enforcement powers under the Renters' Rights Act, that has made borough wide schemes considerably easier to introduce.
Under section 86 of the Housing Act 2004, where a landlord notifies the council of steps being taken so that a property no longer needs a licence, the council may serve a temporary exemption notice. It lasts 3 months from the date it is served. A second notice covering a further 3 months can be served only if the council receives a further notification and decides there are exceptional circumstances that justify it, and no notice can follow after that. It is a bridge while you change the property's status, not a way to delay applying.
Sources and further reading
- GOV.UK: Selective licensing in the private rented sector, a guide for local authorities.
- Housing Act 2004, Part 3, including section 79 (application), section 84 (revocation) and section 86 (temporary exemption notices).
- The Selective Licensing of Houses (Specified Exemptions) (England) Order 2006.
- The Housing Act 2004 Licensing of Houses in Multiple Occupation and Selective Licensing of Other Residential Accommodation (England) General Approval 2024, in force 23 December 2024.
- GOV.UK: Guide to the Renters' Rights Act, civil penalties and rent repayment orders.
General information about licensing in England, not legal advice. Verified against GOV.UK and legislation.gov.uk in July 2026. Designations change frequently, so confirm the position for your address with the local council.
Related compliance guides
Track licensing across every council you let in
New designations are announced constantly. Rentalize holds licence status, conditions and expiry per property so you can see portfolio exposure at a glance.