Selective Licensing and HMO Licensing — How HHSRS Standards Apply to Licensed Properties in England

Two Types of Property Licensing

England has two main licensing regimes that pull private landlords into mandatory council oversight: selective licensing for privately rented properties in designated areas, and HMO licensing for houses in multiple occupation. Both carry HHSRS compliance requirements, and both create enforcement triggers that standalone single-lets outside licensing areas do not face.

Selective Licensing

Selective licensing allows local authorities to require a licence for privately rented properties within a designated area, regardless of property type. Since 23 December 2024, local authorities in England no longer need confirmation from the Secretary of State before implementing a scheme of any size, but must still meet the statutory requirements in Part 3 of the Housing Act 2004.

Active selective licensing schemes operate across dozens of councils in England — from Newham and Waltham Forest in London to Nottingham, Liverpool, Burnley, and many smaller boroughs.

What the licence requires:

• A fit and proper person test for the landlord and any manager
• Current gas safety record (CP12), satisfactory EICR, and working smoke and CO alarms
• Compliance with any additional conditions imposed by the council — which typically include HHSRS-related requirements around damp, ventilation, and thermal comfort

Enforcement: Operating without a licence and without a valid pending application or temporary exemption can be an offence. The council can impose a civil penalty of up to £30,000, and tenants can apply for a rent repayment order through the First-tier Tribunal. For offences committed on or after 1 May 2026, an order can cover up to 24 months' rent; the 12-month cap applies to offences committed before that date.

HMO Licensing

Mandatory HMO licensing applies to properties occupied by five or more people forming two or more households. This is a national requirement — it does not depend on a local designation.

HMO licensing carries stricter physical standards than selective licensing:

• Minimum room sizes (6.51 m² for one person, 10.22 m² for two)
• Shared facility ratios (kitchen and bathroom provision per number of occupants)
• Fire safety measures (fire doors, fire alarm systems, emergency lighting in some cases)
• All the standard certificate requirements (gas, electrical, EPC, smoke and CO alarms)

HHSRS overlap: HMO licensing conditions interact with HHSRS hazard standards. A licensing inspection may identify Category 1 or Category 2 hazards. Common HMO hazards include fire safety failures, overcrowding, inadequate kitchen or bathroom provision, and damp or mould in shared areas.

How Licensing Amplifies HHSRS Exposure

HHSRS enforcement does not depend on whether a property is licensed. A licensing scheme may add proactive inspections, and councils' inspection practices differ. Your property may be inspected as part of a licensing cycle, not only after a tenant complaint.

This means hazards that might go undetected in an unlicensed property — an extractor fan that has stopped working, a trickle vent that has been painted shut, loft insulation that has degraded — get flagged during a scheduled licensing inspection.

The practical consequence: if you hold a licence (selective or HMO), you must meet its conditions throughout the licence period. The council also retains its HHSRS powers to assess hazards and take the action required by law.

Rent Repayment Orders and Unlicensed Letting

Tenants in licensing areas who discover their landlord is operating without the required licence can apply to the First-tier Tribunal for a rent repayment order. For offences committed on or after 1 May 2026, the order can cover up to 24 months' rent; the 12-month cap applies to offences committed before that date.

Recent tribunal decisions have made substantial awards. The risk is not hypothetical — tenant advocacy organisations actively advise renters to check whether their property requires a licence and to apply for an RRO if it does not have one.

Checking Your Licensing Status

Start with your local council's website. Search for the authority name plus "selective licensing" or "HMO licensing." Most councils publish maps of their designated licensing areas and details of the application process.

If your property sits in a selective licensing area or qualifies as a mandatory HMO, you need a licence. If you already have tenants and no licence, apply promptly and confirm with the council that the application is valid. Under sections 72(4) and 95(3) of the Housing Act 2004, no licensing offence is committed while a valid licence or temporary-exemption application is outstanding; without a valid pending application, operating without the required licence can be an offence.

Our Decent Homes & Awaab's Law compliance guide includes an enforcement penalty reference covering selective licensing, HMO licensing, and HHSRS civil penalties — everything you need to understand what a council can do and what it costs.

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