Selective Licensing in London: Which Boroughs Require It

Selective licensing is a discretionary power granted to local authorities under the Housing Act 2004. Unlike mandatory HMO licensing, which applies to specific multi-occupancy property types across England, selective licensing can be applied to all privately rented properties within a defined geographic area. London councils have used this power extensively, and the number of active schemes has grown considerably since 2015.

What Is Selective Licensing?

Under a selective licensing scheme, any landlord letting a privately rented property within the designated area must hold a valid licence issued by the local authority. The licence is property-specific, not landlord-specific — so a landlord with five properties in a licensed zone needs five licences. Licences typically run for five years and cost between £400 and £900 per property depending on the borough.

Councils can designate an area for selective licensing where they determine that the area has problems with low housing demand, significant anti-social behaviour, high levels of deprivation, or poor property conditions. For schemes covering more than 20% of a borough's private rented stock, the council must obtain Secretary of State confirmation before proceeding.

London Boroughs Currently Operating Selective Licensing Schemes

The following boroughs have active or recently confirmed selective licensing designations as of 2025. Landlords should verify current scheme boundaries directly with each council, as zones are reviewed and renewed periodically:

• Newham — One of the longest-running borough-wide schemes in England, first introduced in 2013. The current scheme covers all privately rented properties across the borough.
• Southwark — Operates selective licensing across multiple wards, with a focus on areas of high private rented sector density.
• Lewisham — Has run successive selective licensing schemes; current designation covers significant portions of the borough.
• Waltham Forest — Operates a scheme covering several wards, particularly in the south and west of the borough.
• Brent — Selective licensing applies in designated wards alongside the borough's additional HMO licensing scheme.
• Croydon — Has operated selective licensing in specific wards; landlords should check current ward coverage as schemes have been renewed.
• Hackney — Runs both additional and selective licensing schemes across defined areas.
• Tower Hamlets — Operates selective licensing in conjunction with additional licensing for certain HMO types.
• Enfield — Introduced a selective licensing scheme covering designated wards.
• Haringey — Selective licensing applies in parts of the borough with confirmed high private rented sector activity.

Several other boroughs — including Barking and Dagenham, Redbridge, and Ealing — have either consulted on new schemes or are in the process of renewing designations. The London Property Licensing website and individual council planning portals are the most reliable sources for up-to-date scheme maps.

What Compliance Is Required to Obtain a Licence?

While requirements vary by borough, most selective licensing applications require landlords to demonstrate that the property meets minimum safety and management standards. Common requirements include:

• Gas Safety Certificate — A valid annual gas safety record issued by a Gas Safe registered engineer. This is a legal requirement for all rented properties with gas appliances, independent of licensing, under the Gas Safety (Installation and Use) Regulations 1998.
• Electrical Installation Condition Report (EICR) — Mandatory for all privately rented properties in England under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. The report must be carried out by a qualified electrician and renewed at least every five years.
• Energy Performance Certificate (EPC) — Must be valid (rated E or above under current Minimum Energy Efficiency Standards) and provided to tenants at the start of the tenancy.
• Smoke and carbon monoxide alarms — Interlinked smoke alarms on each storey and carbon monoxide detectors in any room with a fixed combustion appliance, as required by the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022.
• Valid tenancy agreement — Most councils require a copy of the current tenancy agreement to accompany the application.

In older London housing stock — particularly Victorian terraces and Edwardian conversions common across inner south and east London boroughs — electrical installations may not have been assessed since original installation or previous refurbishment. An EICR carried out by a qualified electrician will identify any C1 (danger present) or C2 (potentially dangerous) deficiencies that must be remedied before a satisfactory report can be issued.

Penalties for Non-Compliance

Operating a licensable property without a licence is a criminal offence under the Housing Act 2004. Councils can issue a civil penalty of up to £30,000 per property or pursue prosecution. Unlicensed landlords are also unable to serve a valid Section 21 notice to recover possession, and tenants can apply for a Rent Repayment Order covering up to 12 months of rent paid during the unlicensed period.

Councils actively enforce schemes through data matching with HMRC, council tax records and Land Registry data. The assumption that unlicensed properties go undetected has proven incorrect in Newham and Southwark, where enforcement activity has been sustained and well-resourced.

How to Check Whether Your Property Requires a Licence

The simplest approach is to use the postcode checker on your borough council's website. Most councils operating selective licensing schemes maintain a searchable map showing exact scheme boundaries. If the boundary is unclear, contact the council's private sector housing team directly — they are required to advise whether a licence is needed.

If you manage properties across multiple boroughs, it is worth auditing your entire portfolio against current scheme designations, as licences obtained under a previous scheme designation do not automatically carry over when a scheme is renewed.