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Landlord glossaryLicensing

Selective Licensing

A local authority scheme that requires every private landlord in a designated area to hold a licence, regardless of property type. Operating without a required selective licence carries civil penalties up to £40,000.

Reviewed by Erdem VolkanLast reviewed 16 September 2026How we check facts

Scope
All private lets in a council-designated area
Max civil penalty
£40,000 for offences from 1 May 2026
Rent Repayment Order
Up to two years’ rent for offences from 1 May 2026
Scheme length
Up to five years

Why it matters

What Selective Licensing means for a landlord

Selective licensing is the licensing duty landlords most often miss, because it has nothing to do with HMOs: it covers every private let in the area a council designates. Schemes last up to five years and are often renewed or replaced, so research done a few years ago may be out of date. Letting without a required licence can lead to a civil penalty of up to £40,000 and a Rent Repayment Order.

Worked example

How it plays out

A landlord in the Midlands has let a semi since 2019 and never thought of it as licensable, because it is not an HMO. In late 2025 the council designates the whole ward for selective licensing from 1 May 2026, publicising it on its website and in local media. The landlord misses it. In October the council identifies unlicensed lets and starts enforcement, and the tenant applies for a Rent Repayment Order for the months since the scheme began. A yearly check of the council’s licensing page would have caught it.
An illustrative example. Names, places and figures are made up.

Common mistakes

Where landlords go wrong

  1. 01Assuming licensing only applies to HMOs.
  2. 02Missing a new designation because it was only announced locally.
  3. 03Letting a licence lapse at renewal.
  4. 04Leaving the licence fee out of the property’s cash flow.

What to do

A short checklist

  • Check the council’s licensing page for every let address this week.
  • Diary licence renewals with reminders six and three months ahead.
  • Sign up for your council’s landlord news or licensing updates.
  • If a new scheme covers your property, apply straight away.

Sources

Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.