Selective Licensing in London: What Every Landlord Must Know

What Is Selective Licensing?

Selective licensing is a scheme under Part 3 of the Housing Act 2004 that requires every private rented property in a designated area to hold a licence — not just Houses in Multiple Occupation, but every single-let flat, every house let to a couple, every property with any tenant paying rent. It is the broadest form of private rented sector licensing, applying to the entire stock of privately let homes within a designated zone rather than to a specific property type.

A local authority may designate an area for selective licensing if it can demonstrate that the area is experiencing low demand for housing, or that the area has significant problems with anti-social behaviour, poor housing conditions, high levels of migration, significant deprivation, or high levels of crime. The designation must be confirmed by the Secretary of State (or, since devolution of housing powers, by the Mayor of London for London designations) if it covers more than 20 per cent of the local authority area or more than 20 per cent of the privately rented stock in the borough.

Selective Licensing Areas in London

Newham was the first local authority in England to introduce selective licensing when it launched a borough-wide scheme in 2013. The scheme covered every private rented property in the borough and was a significant milestone in London housing policy. Newham has renewed the scheme multiple times and it remains in force, making a selective licence a requirement for every landlord in the borough regardless of property type or size.

Waltham Forest operates selective licensing across designated wards, targeting those areas of the borough identified as having the highest concentrations of privately rented property and the most significant anti-social behaviour or housing condition issues. Landlords in Waltham Forest must check whether their specific property postcode falls within a designated ward.

Croydon has operated selective licensing in parts of the borough, and designations have been renewed and in some areas extended. Brent has introduced selective licensing in specific wards. Parts of Southwark also fall under selective licensing in addition to that borough operating an additional HMO licensing scheme.

How to Check If Your Property Is Affected

Every London borough that operates a selective licensing scheme is required to publish clear details of the designated area, including maps and postcode guidance. Most boroughs provide an online checker. Designations can change when schemes expire and are renewed — an area that was outside a designation five years ago may now be within one. Any landlord acquiring a property in London should check the relevant borough website before completing a purchase to understand the licensing obligations they will be taking on.

Application Requirements

Selective licence applications typically require: proof of the landlord identity, the address of the property, confirmation of the current tenancy arrangements, a valid CP12 Landlord Gas Safety Record (where gas is present), a satisfactory EICR, a current EPC, evidence of deposit protection for any current tenancy, and confirmation that any mandatory HMO licence is also held if the property meets the HMO threshold. Some schemes also require a PAT testing certificate for landlord-supplied appliances and, for HMOs within a selective area, a Fire Risk Assessment.

Licence Fees and Duration

Selective licence fees in London typically range from £500 to £800 per property for a standard single-let dwelling. Fees are lower than mandatory HMO licence fees, reflecting the different compliance requirements of a simple single let versus a shared house. Licences run for five years in most schemes, subject to the landlord maintaining compliance with licence conditions throughout the period.

Conditions Imposed on Selective Licence Holders

A selective licence is not simply a registration — it comes with enforceable conditions. Common conditions include: maintaining gas and electrical safety certificates throughout the licence period, ensuring smoke alarms are fitted and in working order at the start of each tenancy, providing tenants with a copy of the licence, responding to council requests for information about the property within a defined timescale, and — in some schemes — undertaking training or obtaining an accreditation as a landlord within a defined period.

Consequences of Non-Compliance

Operating a property that requires a selective licence without obtaining one is a criminal offence. The civil penalty regime allows the local authority to impose a financial penalty of up to £30,000 per property without prosecution. Tenants who discover their landlord does not hold a required licence may apply to the First-tier Tribunal (Property Chamber) for a Rent Repayment Order requiring repayment of up to twelve months of rent received during the period of non-compliance. The local authority may also obtain a Rent Repayment Order on behalf of the public purse where housing benefit has been paid for an unlicensed property.

Scheme Expiry and Renewal

Selective licensing schemes have a maximum initial duration of five years. Renewal requires fresh designation, with the local authority required to demonstrate that the conditions for designation are still met. In practice, London boroughs have consistently renewed schemes where evidence of ongoing problems in the private rented sector supports continuation. Landlords should note renewal dates and not assume that the expiry of a scheme removes the obligation: renewed schemes often come into force immediately after the previous one expires, meaning there is no gap in the licensing requirement.