Gateshead Selective Licensing Phase 2 Areas: Felling, Derwentwater, Swalwell, Kelvin Grove, Sunderland Road and Shipcote

Phase 2: The Second Wave of Designated Areas

Gateshead's selective licensing rollout split 16 Lower Layer Super Output Areas into two phases. Phase 1 (including Bensham, The Avenues, Beacon Lough East, Birtley, and Chopwell North) went live on 1 June 2025. Phase 2 followed four months later on 1 October 2025, covering eight additional LSOAs across a different spread of the borough.

Phase 2 runs until 30 September 2030 — four months longer than Phase 1's 31 May 2030 expiry, matching the staggered start dates to give each phase the same five-year duration.

The Phase 2 LSOAs

Phase 2 covers eight neighbourhoods, each defined by LSOA boundaries rather than ward borders or postcode districts:

• North Felling / Felling Shore Industrial — the area north of the established Felling residential streets, extending toward the river and industrial zones.
• Derwentwater East — the eastern portion of the Derwentwater estate, covering residential streets between the A1 corridor and the Derwent valley.
• Derwentwater West / Racecourse Estate — the western Derwentwater area including the Racecourse Estate, characterised by a mix of social and private rented housing.
• Swalwell North / Metro Centre — stretching from the residential streets of Swalwell north toward the Metro Centre retail area. Despite the commercial association, the designation covers residential properties let to private tenants.
• Kelvin Grove — a compact residential area between Teams and Dunston, with a concentration of terraced housing popular with small landlords.
• Felling Falla Park — the Falla Park estate in Felling, distinct from the North Felling LSOA despite their proximity.
• Sunderland Road — a designated Phase 2 LSOA; check each address against the council's address checker.
• Shipcote — the residential area between Bensham and Felling, bordering Phase 1 areas but designated under Phase 2's later start date.

How Phase 2 Differs from Phase 1

The licensing obligations are identical between phases — same fees, same documents, same conditions, same displacement hierarchy. The only operational differences are timing:

Start date. Phase 2 commenced 1 October 2025 versus Phase 1's 1 June 2025. Properties in Phase 2 areas that were already tenanted on 1 October 2025 needed a licence application from that date.

Expiry date. Phase 2 licences run until 30 September 2030, not 31 May 2030. A licence granted in a Phase 2 area in late 2025 has the same maximum five-year term as a Phase 1 licence granted in mid-2025.

Early bird window. Phase 2's early bird discount window ran from 1 July 2025 to 30 September 2025. Complete applications submitted during that period qualified for the £75 early bird discount off the Part B fee. That window has closed, but the £75 accredited landlord discount (NRLA, Safeagent, Propertymark, RICS membership) remains available.

Additional HMO Licensing Across Both Phases

While selective licensing rolled out in two phases, additional HMO licensing started across all 16 LSOAs simultaneously on 1 June 2025. A shared house with three or four occupants from two or more households sharing amenities in a Phase 2 area has needed an additional HMO licence since June 2025, not October — even though the selective licence obligation for single-household lets in the same area didn't start until October.

This catches landlords who assumed everything in their Phase 2 area started in October. If the property is an HMO by occupancy, the additional licensing clock started four months earlier.

Border Properties Between Phases

LSOA boundaries don't follow road centres or obvious landmarks, and a street can cross an LSOA boundary. Neighbouring addresses may therefore have different licensing requirements; check the exact address to confirm the applicable scheme and dates.

Use the council's address checker for every property individually. A postcode that spans two LSOAs could have properties under Phase 1, Phase 2, or no designation at all, depending on exactly where each address falls.

Fees for Phase 2 Properties

Multi-property discounts (£10 off per additional property when submitted simultaneously by the same landlord) apply across phases. If you have three properties — one in a Phase 1 area and two in Phase 2 — the second and third applications each get the £10 discount regardless of which phase they're in.

Our Gateshead landlord licensing guide covers the full application process for both Phase 1 and Phase 2 areas, with a property-by-property tracker for landlords managing rentals across multiple LSOAs and phases.

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