PRS Database vs Selective Licensing 2026: Do You Need Both?

The Renters’ Rights Act 2025 introduced a new national landlord register — the Private Rented Sector Database ("PRS Database"). Selective licensing schemes have been running under Part 3 of the Housing Act 2004 for two decades and are still running today. On the face of it they overlap — both require you to register a rental property with a public body, both carry civil penalties for non-compliance, both apply to broadly the same landlords.

They are not the same thing. And in most areas of England, if selective licensing already applies to your property, you will need both.

This guide walks through what each regime is, where the difference lies, when the PRS Database actually starts operating for landlord registrations, what happens to your existing selective licence when it does, and how a landlord in a licensed borough should think about the practical steps in July 2026.

Not legal advice. Selective licensing rules are set by each local authority and change often; PRS Database secondary regulations are still awaited. Check your council’s current scheme and GOV.UK guidance before you act.

The short answer

Selective licensing is a local scheme run by your council under the Housing Act 2004. It applies only in designated areas (usually a single ward, sometimes a whole borough). Fees are set by the council, typically £500 to £1,100 per property for a five-year licence.

The PRS Database is a national register established by sections 76–78 of the Renters’ Rights Act 2025. It will apply to every private landlord in England, everywhere, not just designated areas.

The PRS Database does not repeal selective licensing. The Housing Act 2004 licensing powers stay on the statute book.

Therefore, if your property is in a selective licensing area when the PRS Database goes live, you will need to hold both: the local licence and a national database registration.

When does the PRS Database go live? As at 18 July 2026, the statute is in force but the technical schema and the "appointed day" for landlord registration have not yet been published. The Ministry of Housing, Communities and Local Government has indicated the register will open once regulations under section 78 are made — most industry commentators expect this in late 2026 or early 2027, but there is no confirmed date.

What selective licensing is (recap)

Under Part 3 of the Housing Act 2004, a local authority can designate an area where every private rented property must be licensed — regardless of number of tenants, room count or storeys. Councils use this power in areas with high private-rented density, low housing demand, anti-social behaviour, poor property conditions or migration issues.

Key features:

Application is per property, not per landlord. A landlord with three properties in a designated area needs three licences.

Fee varies by council but usually £500 to £1,100 for a five-year term. Some councils offer an early-bird discount or a reduced fee for accredited landlords.

The application asks for identifying information on the landlord, the managing agent (if any), the property address, the number of tenants and rooms, plus a copy of the current gas safety certificate, EICR and EPC.

The licence attaches conditions — mandatory conditions (gas safety, electrical safety, furniture regulations, references from proposed tenants, written tenancy terms) plus discretionary conditions set by the council (regular property inspections, ASB reporting, occupancy limits).

Non-compliance is a criminal offence under s.95 of the 2004 Act, with an unlimited fine on prosecution or a civil penalty up to £30,000 per property under s.249A, plus Rent Repayment Orders covering up to 12 months of rent.

As of July 2026 there are around 80 designated selective licensing schemes across England, covering roughly 35 local authorities. High-profile examples include most Manchester wards, several Liverpool wards, Newham, Croydon (partial), Waltham Forest and Nottingham.

What the PRS Database is (once it opens)

Sections 76–78 of the Renters’ Rights Act 2025 create a new database of residential landlords and privately rented dwellings in England. It will be operated by a body designated by the Secretary of State — expected to be a unit within MHCLG or a delegated arm’s-length body.

Key features anticipated from the Act (subject to secondary regulations):

Application is per landlord and per dwelling — you register yourself once and then add each of your rentals.

Registration will be a legal precondition to letting a property. Section 76(2) makes it an offence for a landlord to market or grant a tenancy of a residential dwelling that is not on the Database. That is a real bite — the same enforcement mechanism as the tenancy deposit scheme rules.

The database will hold: the landlord’s identity and address, the property address, the tenancy type (Assured Periodic Tenancy under the new regime), and evidence of compliance with statutory duties (gas, electrical, EPC, Right to Rent). Some of this will be public-facing (property address, landlord identity for accountability); some will remain restricted to enforcement bodies.

Fee is not yet set. The Act allows regulations to set a fee for entry and periodic renewal. Industry consultation responses have suggested £40–£80 per property annually as a plausible range; the Explanatory Notes are silent.

Non-registration carries civil penalties up to £7,000 (s.77 of the Act) for a first offence and up to £40,000 for serious or repeated non-compliance. Rent Repayment Orders will also be available.

Where the two overlap

Both regimes ask a landlord to identify themselves, identify the property, and evidence compliance with core safety duties. If you already hold a selective licence, your council already holds:

Your name, contact and correspondence address

The property address

Your Gas Safety certificate, EICR and EPC

Details of any managing agent

Sometimes: a floor plan or room count

Once the PRS Database opens, that information will duplicate what you upload nationally. The Act allows the Secretary of State to require councils to share licensing data with the Database (s.78(4)), which may reduce the duplication over time — but at the point of first registration, you should expect to enter the information twice.

Where the two differ

Even where the data overlaps, the regimes are legally distinct.

Scope

Selective licensing applies only in designated areas.

The PRS Database applies everywhere in England.

Legal basis

Selective licensing sits under Housing Act 2004 Part 3.

The PRS Database sits under Renters’ Rights Act 2025, Part 2 Chapter 3.

Purpose

Selective licensing is a conditions-based regulatory regime — the council attaches licence conditions and can revoke a licence for breach.

The PRS Database is a transparency and accountability register — it does not attach conditions in the licensing sense; it makes landlord identity and property status visible and enforceable against.

Enforcement

Selective licensing: council enforcement, criminal offence + civil penalty up to £30,000 + RRO.

PRS Database: designated database operator + council enforcement, civil penalty up to £7,000 (£40,000 aggravated) + RRO + letting/marketing offence under s.76(2) (a much harder-hitting mechanism than a fine).

Fees

Selective: £500–£1,100 for 5 years (varies by council).

PRS Database: not set as at July 2026; expected in the low tens of pounds per property per year.

Renewal

Selective licence: 5-year term, then re-apply.

PRS Database: expected to be annual, but that will be set in regulations.

Do I need both?

In most cases, yes — if selective licensing applies to your property when the PRS Database opens.

The two regimes were considered together during the passage of the Renters’ Rights Act. Amendments proposed to exempt licensed properties from the Database were rejected by government — the policy rationale being that the Database is a national accountability tool, not a substitute for local licensing where local conditions justify a designated scheme.

There are three specific cases worth spelling out.

Case 1: Property in a selective licensing area today.

You must maintain your selective licence (obtain, renew, comply with conditions) as normal. When the PRS Database opens, you must also register the property nationally. Two fees, two renewal calendars, two records to keep.

Case 2: Property outside any licensing scheme today.

You are not currently required to hold a licence. Once the PRS Database opens, you will need to register nationally. One fee, one renewal calendar. If your council later designates a scheme covering your area, you will fall into Case 1.

Case 3: Property in a mandatory HMO or additional HMO licensing area.

Mandatory HMO licensing (5+ occupants forming 2+ households) and additional HMO licensing are separate from selective licensing and are not repealed by the PRS Database either. If your property is a licensable HMO, you continue to need the HMO licence and the national Database entry.

Practical steps for a landlord in July 2026

1Check whether selective licensing applies to your property now. Your council’s website or the property licence check on GOV.UK is the first stop. If it does, and you don’t hold a licence, applying is more urgent than any PRS Database work — non-compliance is a criminal offence today, not once the Database opens.

2Renew your existing licence on schedule. Do not wait for the Database in the hope that dual registration will be simplified. Councils have not indicated any freeze on selective licensing renewals.

3Keep a central record of everything — landlord identity documents, property compliance certificates, tenancy agreements — in a format you can re-submit quickly. When the Database opens, the same core data must be re-entered.

4Watch for the appointed day. MHCLG will consult on the Database regulations before commencement. When the appointed day is announced, there will be a transitional window (probably 6–12 months) during which existing tenancies must be registered.

5Budget for both fees. For a landlord with, say, three properties in Newham, existing licensing costs are already meaningful. Add roughly £150–£240 per year in Database fees on top.

If you use compliance software, this is exactly the kind of dual regime it should track for you — one calendar with both the local licence expiry and the national registration expiry, one document store that can spit out both bundles on demand.

What LetCompliance is doing

We track selective and additional/HMO licences today: expiry dates, fees, licence numbers, conditions and evidence documents live in one place, and the property score picks up if a licence lapses.

For the PRS Database, our tracker ships the day GOV.UK publishes the technical schema. Registration date, renewal cadence and audit row are already modelled in your compliance score — when the Secretary of State names the appointed day, adding your properties will be a one-click operation, not a data-entry exercise. That is our specific commitment to landlords worried about being caught out on 1 January of whatever year the Database goes live.

Until then, the honest position is: hold your selective licence, keep your paperwork tight, and be ready to register nationally at short notice.

Sources

legislation.gov.uk — Renters’ Rights Act 2025, sections 76–78 (PRS Database)

legislation.gov.uk — Housing Act 2004, Part 3 (selective licensing)

GOV.UK — Selective licensing: guidance for local authorities

GOV.UK — A guide to the Renters’ Rights Act 2025 for landlords

MHCLG — Renters’ Rights Act 2025: Explanatory Notes

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Frequently asked questions

Will the PRS Database replace selective licensing?

No. The PRS Database is a national landlord register created by the Renters’ Rights Act 2025. Selective licensing continues under Part 3 of the Housing Act 2004. Landlords in a designated selective licensing area will need to hold both the local licence and (once it opens) a national database registration.

When does the PRS Database open?

As at July 2026 the statute is in force but the technical schema and the "appointed day" for landlord registration have not been published. Industry commentators expect the register to open in late 2026 or early 2027, but there is no confirmed date. Watch for MHCLG consultation on the Database regulations.

How much will PRS Database registration cost?

The fee is not yet set. The Renters’ Rights Act 2025 allows regulations to prescribe a fee for entry and periodic renewal. Consultation responses have suggested a range of £40–£80 per property per year as plausible, but this is not confirmed.

What is the penalty for not registering with the PRS Database?

Civil penalty of up to £7,000 for a first offence (section 77 of the RRA 2025), rising to £40,000 for serious or repeat non-compliance. Rent Repayment Orders are available, and it is an offence under section 76(2) to grant or market a tenancy of a dwelling that is not on the Database — an enforcement mechanism much stronger than a fine.