Glossary · UK
What is Selective Licensing (Private Rented Sector)?
A local authority power requiring all private landlords in a designated area to hold a licence for each rented property, regardless of property size or type.
Full Definition
Selective licensing is a power granted to local authorities in England and Wales under Part 3 of the Housing Act 2004 to require all private landlords in a designated area to hold a licence for each privately rented property, regardless of property type. Unlike mandatory HMO licensing -- which targets larger houses in multiple occupation -- selective licensing applies to all privately rented dwellings in the designated area, including single-let properties. A council can designate an area for selective licensing if it is satisfied that conditions in the area meet certain statutory criteria: low housing demand; significant and persistent antisocial behaviour; high levels of deprivation; high crime rates; or poor property conditions. In England, designations covering more than 20% of a local authority's geographic area or more than 20% of its private rented housing stock require Secretary of State approval before taking effect. Landlords in a designated area must apply for a licence for each property, meet conditions relating to property management (gas safety certificate, electrical installation condition report, deposit protection compliance, appropriate tenancy agreements), pay a licence fee -- typically GBP 300-700 per property, varying by council and property characteristics -- and ensure tenants are appropriately referenced. Operating a licensable property without a licence is a criminal offence carrying an unlimited fine. Unlicensed landlords also face a rent repayment order from the First-tier Tribunal requiring repayment of up to 12 months' rent to tenants, and cannot lawfully serve a valid section 21 no-fault eviction notice while the property is unlicensed. Licences typically run for 5 years. Landlords should check their local council's website and MHCLG guidance regularly, as designations can be introduced with relatively short notice periods and can apply to entire wards or boroughs.