Selective licensing explained : How to check if your rental needs a licence
Selective licensing(per its name) only applies to a selection of properties. It’s entirely different from mandatory HMO licensing additional licensing, but it isn’t optional if it applies to your rental property.
Councils can designate specific areas (under Part 3 of the Housing Act 2004) as liable for selective licensing. This means the same property may need a license in one postcode and not in another.
In this article, read our quick guide on how to check if your rental needs a license and how to navigate “selective licensing” rules.
How landlords should check licensing rules
The best way to check if your property requires selective licensing is to:
- Visit your local council website: This is the council area the rental property is located in. Search for selective licensing rules to see the exact requirements for your property.
- Ask your letting agent: If you have one, ask your letting agent if the property requires licensing in the area, or if they know where the information is on the council website.
- Use postcode/property search tools: Use digital property license checkers and online tools to see which zone your property falls into.
- Check exemptions: Ask the council for a list of exemptions. Rules differ, but they can be things like whether a property is empty, owner-occupied, student-let, or covered by another licensing scheme (e.g., HMO licensing).
- Understand live dates: Selective licensing rules can change, and it’s important to understand when changes have been announced vs when they go live (i.e., the date you actually need the license by).
Landlords should also check routinely for changes in licensing rules and stay as up to date as possible on local requirements.
It isn’t unusual for licensing requirements and zones to change in short time periods, and it’s a landlord’s responsibility to stay in the loop.
Consider signing up for your local council’s licensing emails and setting reminders in your property management software to check rules annually.
Common triggers for confusion
Selective licensing rules aren’t always easy to navigate. The name “selective” sums it up – in that licenses only apply to a select few circumstances, areas, and properties, but not all.
Some common areas that can cause confusion include:
- Single-let homes: Selective licensing can apply to small rentals and single-person units, not just family homes.
- Change in tenants: Renting to students, your own family members, or people who don’t otherwise know each other (i.e., flat shares) can change the selective licensing rules applicable to you.
- Management agents: Even if you have a letting agent who manages the property, the landlord is still responsible for licensing. If a letting agent advises incorrectly, it can still be the landlord’s fault.
- Street-by-street: Licensing rules that apply to one street in an area may not apply to the street it borders. For landlords with multiple properties, this is important to watch out for.
- Duration of licenses: How long a license lasts also varies per area. Selective licenses are usually granted for five years, but this can vary within the same council, and it can change after the initial term.
Be sure to check for changes to selective licensing wards as part of government changes and announcements.
For example, Local Government Reorganisation (announced in 2024) is expected to affect areas of Essex, Suffolk, Surrey, Cambridgeshire, Derbyshire, Devon, Hertfordshire, and Kent (and the associated district/borough councils) in the next five years.
What to provide in the application
When applying for a selective license for a rented property, you’ll need certain documentation. This should be information you already have available and stored for other reasons (like advertising the property).
Documents you’ll likely need for the application include:
- A valid Gas Safety Certificate
- An up-to-date Electrical Installation Condition Report (EICR)
- An Energy Performance Certificate (EPC) rated E, or above
- A floor plan of the property, showing the layout, room sizes, and location of fire safety equipment (e.g., fire extinguishers)
- A copy of the current tenancy agreement (if available)
- Fire safety reports (depending on the local council requirements)
Other information you’ll need to provide can include:
- License holder: This is the name, address, date of birth, and contact details of the landlord.
- Interested parties: This could be details of the leaseholders, freeholders, or lenders involved in the property.
- Management: This could be a management agent or the people responsible for dealing with repairs and the tenancy.
- Safety measures: You may need to give details and photos of smoke detectors, carbon monoxide alarms, or other fire safety devices.
- Accreditation: You may need to confirm or submit proof of your landlord status or accreditation.
It’s good practice to keep all important documents and property details in a centralised place. This makes it easier to manage applications if your property suddenly becomes eligible for selective licensing.
Learn more about good record-keeping via property management software.
What happens if a landlord gets it wrong?
Operating without the right license as a landlord is a costly offence. Failure to comply (intentionally or by accident) can lead to:
- Fines: This can be a penalty between £7,000 and £40,000 under the Renters Rights Act, or an unlimited fine.
- Rent repayment orders. This allows tenants to reclaim up to two years of rent, which can be the case even if the property was safe and the tenant was happy.
- Further enforcement action: In serious or repeated cases, prosecution or a criminal record can apply.
- Letting restrictions: Landlords can face eviction restrictions or a ban order on letting and managing properties in the future.
How to check in 10 minutes: A step-by-step guide
Selective licensing can only be applied for within the local council in which the property lies. This means there isn’t an easy, clear way to check which licenses you need for rental properties across the country.
Instead, you have to find the right council and check the specific advice available. If it isn’t available online, you’ll need to get in touch with the council to check eligibility and exemptions.
To check if you need a license:
- Find the council: Check which council your property lies in by entering the postcode into the Find your local council online tool.
- Check council pages: Navigate to the council’s housing pages or search for selective licensing to find the right advice. This should list the wards that selective licensing applies to and an application form.
- Call the council: Council websites aren’t always clear, and calling the council to obtain the right policy can be the best move.
- Email the council: Out of hours (on weekends and evenings), you can email the council to ask for the selective licensing criteria. You can keep the email as part of your records.
If a landlord has a portfolio of properties, each property will need to be checked for selective licensing liability.
FAQs
Can you let a property before applying for a license?
Selective licensing usually only applies to properties that are occupied, which means you’ll only need the license when a tenant is living there.
However, it’s recommended that you apply for a license before a tenant moves in or before you begin letting the property to stay compliant.
In some circumstances, you may be able to let a property before having a license in place. For example:
- When the landlord changes: If you purchase a property with tenants in situ/with a sitting tenant, the license is not transferable, so the new landlord will need to apply for the license as soon as possible.
- Just before the tenants move in: In this case, you may have an unsigned tenancy agreement while you apply for the license.
- As the tenants move in: Some councils may provide a grace period, allowing you to apply as the tenants move in. However, this is not always the case, and some councils will consider this a breach.
- When you didn’t know you needed a license: If a landlord does not have a license when they should, they must apply as quickly as possible to prevent further enforcement. Some councils can view prompt action as more favourable when it comes to issuing fines.
How do landlords check for license changes?
Unfortunately, licensing rules can change frequently without big announcements, leaving landlords with multiple properties responsible for keeping abreast of multiple council changes.
Councils should communicate changes to licensing rules to landlords with current licenses, but this cannot be relied upon. Landlords are expected to check each property routinely to ensure they stay compliant.
The best way to stay on top of changes to selective licensing rules is to:
- Check mailing addresses: Make sure mailing addresses and email addresses are up to date with each council area.
- Set reminders: Use property management software to set yourself reminders and check each property on an annual basis.
- Get community news: Sign up for property news to stay up-to-date on changes in your local area and the landlord community as a whole
Things to remember: Checking which rental license you need
- Having the right license is the landlord’s responsibility, so make sure you don’t solely trust the letting agent and ask for confirmation in writing if you speak to a council representative.
- Every property may be different, as licensing usually depends on the very specific postcode. The same property in a different area or in the same area but on a different street may have different eligibility.
- Set annual reminders. Licensing rules can change, and councils can add new areas to selective licensing boundaries. Sign up for email alerts from your council and set annual reminders to check the latest rules.
- Record information via property management software. Keep track of licensing requirements by uploading documents and evidence to each property in your portfolio. Keeping good records and storing documents succinctly makes it easier to apply if the time comes (learn more about Rentila, property management software, and pricing for multiple properties.
