← All guides

Last checked 8 Oct 2026, against the official source each section links.

Selective licensing: is your rental in a designated area?

Selective licensing is the scheme that catches landlords out precisely because it's local: two identical houses a street apart can differ on whether letting one of them without a licence is an offence. Designations start, end, and change coverage. The council's web page is often the only notice you get.

The rule

Under Housing Act 2004 Part 3, a council can designate all or part of its area for selective licensing. Inside a designation, a privately rented home needs a licence, house or flat, family or sharers, with the exceptions the Act sets out: a house in multiple occupation that needs an HMO licence instead, a home under a temporary exemption notice or a management order, lettings by social housing providers, and tenancies the government has exempted by order.

The licence itself

The council can grant a licence only if it is satisfied of several things, including that the proposed holder is a fit and proper person and the most appropriate person available, and that the manager and management arrangements are suitable. A licence lasts no more than five years and can't be transferred to someone else.

Every selective licence must carry the same core conditions as an HMO licence: if the home has gas, the gas safety certificate to the council each year; safe electrical installations, appliances and furniture; a smoke alarm on each storey used as living accommodation and carbon monoxide alarms in rooms with a fixed combustion appliance (other than a gas cooker); and a written statement of terms for the occupiers.

What it costs to miss

Letting an unlicensed property in a designated area risks a civil penalty of up to £40,000 (the ceiling rose on 1 May 2026) or prosecution, plus a rent repayment order: since the Renters' Rights Act, tenants can claim back up to 24 months of rent.

It's a defence to the offence that you had already applied for a licence, or notified the council of steps so the home no longer needs one, while that is still effective. The government's guidance to councils sets £12,000 as the starting point for a civil penalty for an unlicensed home in a selective area.

Why this is hard to track by hand

Since 23 December 2024 a council no longer needs the government's confirmation to make a scheme of any size, though it must still consult for at least 10 weeks first.

Designations run for up to five years, then lapse or get re-made with different boundaries. Councils publish changes on their own sites, in their own formats. Checking once when you buy is not enough — the scheme that didn't exist when you bought can exist now.

Two minutes tells you where this property stands

The free check tests your answers against the rules for your rental, with the official source for each and the fine where the law sets one.

Free check

Then keep that home on Datestone for free

Datestone is a tool for running your rental homes, not legal advice.