UK Selective Licensing Guide: How the Scheme Works for Landlords

What Selective Licensing Is

Selective licensing is a power under Part 3, Section 80 of the Housing Act 2004 that allows local authorities in England to require privately rented properties in a designated area to hold a licence, subject to statutory and scheme exemptions — not just HMOs, but single lets, family rentals and properties shared by two unrelated people. It targets areas with specific problems: poor housing conditions, high levels of deprivation, persistent anti-social behaviour, low housing demand, significant migration or a history of crime.

The scheme is "selective" because it is discretionary. Each council decides whether to introduce it, which areas to cover, and for how long (up to 5 years per designation). Some boroughs cover their entire area; others designate specific wards or streets.

Which Areas Have Selective Licensing

There is no single national register of selective licensing schemes. Each local authority publishes its own designation on its website. In London alone, boroughs including Waltham Forest, Newham, Brent, Tower Hamlets, Barking and Dagenham, Ealing and Croydon have run selective licensing schemes. Outside London, major cities like Liverpool, Nottingham, Birmingham and Leeds have active or recent designations.

Before the General Approval 2024, councils that wanted to cover more than 20% of their area or private rented stock needed Secretary of State confirmation — a process that delayed many schemes for years. The Housing Act 2004 General Approval 2024, which took effect on 23 December 2024, removed that requirement for designations of that scale, provided the authority conducts at least 10 weeks' statutory consultation. Other statutory requirements still apply. This has accelerated the rollout of borough-wide schemes.

How the Application Works

The typical process follows the same pattern across most councils:

1. Check whether your property is in a designated area. Enter your postcode on the council's online checker or phone the licensing team.
2. Determine which licence applies. Selective licensing covers single lets and properties shared by up to two unrelated people. If more than two unrelated people share, HMO licensing (additional or mandatory) applies instead.
3. Gather documentation. Most councils require a current Gas Safety Certificate, an EICR (Electrical Installation Condition Report), an EPC (Energy Performance Certificate, minimum Band E), a floor plan and a copy of the tenancy agreement.
4. Complete the online application. Most councils use an online portal. You will need to declare details about the property, identify the proposed licence holder and any managing agent, complete a fit-and-proper-person assessment and upload your documents.
5. Pay the fee. Many councils split the fee into Part A (application processing, paid on submission) and Part B (grant administration, paid when the licence is ready to issue). Fees vary by council — in Waltham Forest, a selective licence costs £895.

The licence typically runs for 5 years (or the remainder of the scheme's designation period). It is personal to the licence holder and cannot be transferred if the property is sold.

Penalties for Non-Compliance

Operating a rented property without a licence in a designated selective licensing area is a criminal offence under Section 95 of the Housing Act 2004. Since 1 May 2026, the Renters' Rights Act raised the maximum civil penalty to £40,000 per offence, and extended Rent Repayment Orders from 12 to 24 months of recoverable rent.

Ignorance is not a defence. Tribunals have consistently held that a landlord's lack of awareness of a local licensing scheme does not constitute a reasonable excuse.

Selective Licensing vs HMO Licensing

The distinction matters. Selective licensing covers properties that are not HMOs — single lets and small shares. HMO licensing (additional and mandatory) covers shared houses where three or more unrelated people from separate households share amenities. Some areas, including Waltham Forest, run both schemes simultaneously, meaning nearly every rented property in the borough needs some form of licence.

If your property is in Waltham Forest, our step-by-step licensing guide covers all three local schemes — selective, additional HMO and mandatory HMO — including the ward boundaries, fee splits and the Metastreet portal workflow.

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