Licensing - Selective, Additional, Mandatory

Selective, additional, and mandatory licensing are three distinct schemes under which local councils in England can require private rented homes to hold a licence. Licensing sits alongside newer duties under the Renters' Rights Act, including the Decent Homes Standard and a forthcoming national Property Portal, giving councils significantly more tools to enforce standards in the private rented sector.

Selective licensing

Selective licensing allows a council to require any private rented home in a designated area to hold a licence, regardless of whether it is an HMO. You can check your requirements using our Selective Licensing checker tool. Schemes are typically introduced in areas experiencing poor housing conditions, high levels of anti-social behaviour, low housing demand, or significant deprivation. Following a 2024 General Approval from central government, councils can now roll out selective licensing schemes over wider areas without needing individual sign-off from the Secretary of State, which has led to a significant increase in new schemes across England.

A selective licence is property-specific and non-transferable. If a landlord sells a licensed property, the new owner must apply for their own licence. Licences typically run for five years and set out conditions the landlord must meet, covering property management, tenant referencing, repair response times, and occupancy limits.

How to check if your property needs a selective licence

Selective licensing schemes are geographically defined, they apply to specific wards, postcodes, or streets rather than an entire local authority area. The best way to check is via your council's website, where current schemes and their boundaries are usually mapped. Our blog article on landlord licensing in 2026 tracks which local housing authorities are introducing new schemes.

Applying for a selective licence

Applications are made directly to the local housing authority. You will typically need to provide details of the property, your contact information, details of any managing agent, and evidence that you are a fit and proper person, which includes declaring any relevant criminal convictions, civil penalties, or previous licence refusals. Licence fees vary significantly between councils, ranging from around £400 to over £1,000 per property for a five-year term.

Most councils carry out an inspection of the property as part of the licensing process, or reserve the right to do so. Conditions attached to the licence may require you to carry out specific works, maintain certain safety standards, or provide tenants with prescribed information.

Penalties for letting without a selective licence

Letting a property in a selective licensing area without a licence is a criminal offence. Civil penalties of up to £30,000 can be imposed per property, and councils can also prosecute through the courts. Unlicensed landlords may also be subject to a Rent Repayment Order, through which tenants can reclaim up to 12 months of rent paid during the unlicensed period. The Renters' Rights reforms are strengthening enforcement powers further, with tougher civil penalties and a PRS database that will make unlicensed properties more visible to authorities.

Mandatory HMO licensing

Mandatory HMO licensing applies across England to Houses in Multiple Occupation occupied by five or more people forming two or more households who share facilities. Children count towards the numbers. A landlord cannot legally let such a property without a licence. This applies nationally, it is not scheme-dependent in the way selective licensing is.

Additional licensing

Additional licensing is an optional scheme a council can introduce for other HMOs not caught by mandatory licensing, typically smaller shared houses with three or four occupiers. Some councils require a licence for all HMOs regardless of size. Check your council's position if you let any shared property.

Scotland and Wales

Rules differ outside England. In Wales, Rent Smart Wales operates a national landlord registration and licensing scheme. Scotland has its own separate regime. Northern Ireland differs again, check the position in your nation if you let outside England.

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