Selective Licensing vs PRS Database: Do You Need Both?
They're Completely Separate Obligations
This is the most common source of confusion in the PRS Database rollout. Landlords who already hold a local council selective licence — or a mandatory HMO licence — frequently assume that covers the national database. It doesn't.
Local property licensing operates under Parts 2 and 3 of the Housing Act 2004. It's administered by your local council, applies only in designated areas, and covers property standards and management conditions.
The PRS Database operates under Part 2, Chapter 3 of the Renters' Rights Act 2025. It's a national system administered by the database operator under MHCLG, and applies across England to covered assured and regulated tenancies, subject to the statutory exclusions.
Holding a selective licence does not exempt you from registering on the PRS Database. Registering on the PRS Database does not replace your selective licence.
What This Means in Practice
If your property is in a selective licensing area — Manchester, Newham, Nottingham, and many other councils operate these schemes — you pay for and maintain both:
| Obligation | Authority | Typical Cost | Renewal |
|---|---|---|---|
| Selective licence | Local council | £500–£1,200 per 5-year licence | Every 5 years |
| PRS Database entry | National (MHCLG) | £65 per property per year | Annual |
| HMO licence (if applicable) | Local council | £500–£1,500+ per 5-year licence | Every 5 years |
The database dwelling entry requires you to declare whether the property needs a local licence and supply the licence reference number. The two systems feed into each other, but compliance with one doesn't satisfy the other.
Where Does the Landlord Ombudsman Fit?
The PRS Landlord Ombudsman is a third obligation, also created by the Renters' Rights Act 2025 but under a different chapter (Part 2, Chapter 2). Compulsory Ombudsman membership is expected to roll out in 2028, with estimated fees around £40 per year.
Like the database and local licensing, the Ombudsman scheme is independent. Having one doesn't cover the others. By late 2028, a landlord in a selective licensing area could be maintaining:
- A selective licence (local council)
- A PRS Database entry (national)
- Ombudsman membership (national)
Each has its own fees, renewal dates, and compliance requirements.
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HMO Licensing and the Database
If you let a House in Multiple Occupation, the HMO is registered on the database as a single dwelling entry. The entry must detail the total number of let rooms, occupational households, and your HMO licence reference number.
You still need the HMO licence itself from your local council — the database entry is an additional layer on top, not a replacement.
Why This Matters for Enforcement
An unregistered landlord faces penalties from both sides. A missing selective licence can result in a Rent Repayment Order and local authority prosecution. A missing PRS Database entry separately triggers fines up to £7,000 (or £40,000 for repeat offences) and bars possession claims.
The PRS Database Registration Guide includes a regulatory separation chart that maps each obligation side by side — PRS Database, local licensing, Ombudsman, deposit protection — so you can track which requirements apply to your property and when each is due.
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