Middlesbrough Selective Licensing — What Landlords Need to Know in 2026

If you rent out a property in Middlesbrough and you've heard something about needing a licence, the anxiety is understandable. The penalties for getting it wrong run to £40,000 per offence, and tenants can claim back up to 24 months of rent through a Rent Repayment Order.

Selective licensing is a power under Part 3 of the Housing Act 2004 that lets councils require every non-exempt privately rented property in a designated area to hold a licence — regardless of the number of tenants. Middlesbrough Council currently uses it in parts of Newport ward, and understanding the scheme is the first step toward staying compliant.

Which Areas Does Selective Licensing Cover?

Middlesbrough runs two active selective licensing designations, both within Newport ward:

• Newport 2: started 3 July 2023, expires 2 July 2028
• Newport 1 (Phase 2): came into force on 5 August 2024 and expires 22 July 2029

If your property sits inside either designation boundary, you need a selective licence before you let it. A third scheme covering North Ormesby expired on 13 June 2026 — landlords there no longer need a selective licence, though general housing standards still apply.

The boundaries are defined at street level, not by postcode. Postcodes like TS1 cross into Stockton-on-Tees, so a Middlesbrough postal address does not guarantee your property falls under Middlesbrough Council's licensing jurisdiction. Use the council's online address checker or inspect the street schedule at the Newport Settlement Hub to confirm.

What Does It Cost?

Fees depend on which designation your property falls in:

• Newport 2: £878 licence fee (single payment), plus a £20 fit-and-proper check per proposed licence holder
• Newport 1 (Phase 2): £998 total (£499 application fee + £499 on grant)

These licence fees are non-refundable — if your application is rejected because of missing documents or errors, you lose the fee and have to pay again.

Who Needs a Licence?

Every non-exempt privately rented property below the mandatory HMO threshold inside an active designation area needs one. That includes single-family lets, house shares with two or three tenants, and small HMOs with three or four occupants. Exemptions include properties managed or controlled by registered social housing providers or local authorities, student halls managed or controlled by a university under an approved code of practice, and leases for a term exceeding 21 years with no provision for early landlord termination.

If the property is occupied by five or more people from two or more households sharing basic amenities, it falls under mandatory HMO licensing instead — a separate borough-wide scheme that runs permanently.

What Happens Without a Licence?

Operating without a licence in a designated area is a criminal offence. Middlesbrough Council can issue civil penalties of up to £40,000 or prosecute through the magistrates' court. Since the Renters' Rights Act 2025 came fully into force on 1 May 2026, tenants can also apply for a Rent Repayment Order covering up to 24 months of gross rent.

Beyond penalties, an unlicensed landlord cannot serve a valid Section 8 Ground 1 notice (the notice for recovering possession when the landlord wants to move back in) while the property should be licensed but is not, unless a valid licence application or Temporary Exemption Notice remains pending determination.

Next Steps

Start by checking whether your property's address falls inside Newport 1 or Newport 2 on the council's address tool. If it does, gather your gas safety certificate, EICR, and EPC before you apply — missing documents are the most common reason applications get rejected, and the fee is already gone.

For a full walkthrough of the application process, document checklist, licence conditions, and a dated compliance tracker, see our Middlesbrough Landlord Licensing Guide.

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