HMO Licence
Selective licensing in 2026: who needs a licence, what councils require, how to apply
Updated 2026-05-21 · 6 min read
Selective licensing is a power granted to English and Welsh local authorities under the Housing Act 2004 that lets them require a licence for every privately rented property in a designated area, regardless of whether it is an HMO. Unlike mandatory HMO licensing, selective licensing is geographic: cross a council boundary and the rules can change overnight.
How selective licensing works
Councils designate selective licensing under sections 80-84 of the Housing Act 2004. Designations last up to five years and have to be justified on at least one of seven statutory grounds, including low housing demand, significant anti-social behaviour, poor property conditions, high migration, high deprivation or high crime.
Designations covering more than 20 per cent of the council's geography or 20 per cent of its private rented sector now require Secretary of State approval. Smaller designations can be made by the council alone, after public consultation.
Where selective licensing currently applies
By May 2026 there are over 90 active selective licensing schemes in England, covering large parts of London (Newham, Croydon, Brent, Waltham Forest, Tower Hamlets), the North West (Liverpool, Salford, Burnley, Blackpool), the North East (Sunderland, Newcastle), the Midlands (Nottingham, Birmingham parts) and Wales (Cardiff, Swansea parts).
Always check the council's website before you let a property. The map of designations shifts every few months. The British Property Federation publishes a periodic summary but it is not authoritative.
Typical fees and conditions
Selective licence fees range from £400 to £1,500 for a five-year licence. Some councils offer reduced fees for accredited landlords through schemes such as the National Residential Landlords Association or local accreditation. Newham, the largest single scheme, charges around £800 to £1,000 depending on accreditation.
Standard conditions cover fit and proper person, valid gas safety, electrical safety, EPC, smoke alarms, carbon monoxide alarms (where applicable), reasonable property condition, written tenancy agreements, prompt repair response and management of anti-social behaviour.
Some councils add stricter conditions: minimum room sizes, certified fire risk assessments for buildings with shared parts, written inspection schedules, and notification requirements when a property changes hands.
How to apply
Applications are made online through the council's licensing portal. You will need proof of identity, proof of ownership or management agreement, current EICR, current gas safety record where applicable, EPC, fire risk assessment for buildings with common parts, a floor plan with room sizes, and a fit-and-proper-person declaration.
Most councils issue a draft licence within three to six months, with a property inspection along the way. Operating without a required licence is a criminal offence that can attract an unlimited fine or a civil penalty up to £30,000 per breach, plus a rent repayment order of up to twelve months' rent.
Letting agents and accreditation
Many councils accept a reduced fee for landlords accredited through bodies such as the NRLA, ARLA Propertymark, the Landlord Accreditation Scheme or Safe Agent. If you let several properties, accreditation usually pays for itself in the first year on reduced fees alone.
Letting agents do not automatically hold the licence on your behalf. The licence must be held in the landlord's name unless the agent has formally been appointed as the manager and the council has accepted them in that role.
Common questions
- How do I know if my property needs a selective licence?
- Check the local council's website. Schemes are area-specific and change every few months. If in doubt, email the council's licensing team directly.
- How much does a selective licence cost?
- Typically £400 to £1,500 for a five-year licence. Accreditation can reduce the fee by 10-25 per cent in many schemes.
- What happens if I let without a licence?
- Unlimited fine or a civil penalty up to £30,000 per breach, plus a rent repayment order for up to twelve months' rent. The council can also take over the management of the property.