SELECTIVE LICENSING: ARE YOU AWARE OF THE NEW REQUIREMENTS FOR LANDLORDS?
Tuesday October 13, 2026
Landlords across London are facing significant changes to property licensing requirements. With more local authorities introducing or expanding Selective Licensing schemes throughout 2026, thousands of privately rented properties may now require a licence — including ordinary houses and flats let to single families.
For landlords who are unaware of these requirements, the consequences can be serious, with financial penalties of up to £40,000, potential rent repayment orders and further enforcement action.
At Auckland Estates, we believe it is important that landlords understand their legal responsibilities, particularly as the private rented sector continues to undergo substantial regulatory changes.
So, what exactly is Selective Licensing, who does it affect, and what should landlords be doing?
WHAT IS SELECTIVE LICENSING?
Selective Licensing is a system introduced under Part 3 of the Housing Act 2004 that allows local authorities to require privately rented properties within designated areas to be licensed.
The purpose of these schemes is to improve standards in the private rented sector, ensure properties are properly managed and address issues such as poor housing conditions and anti-social behaviour.
Unlike traditional House in Multiple Occupation (HMO) licensing, which generally applies to properties occupied by multiple unrelated tenants, Selective Licensing can apply to almost any privately rented residential property within a designated area.
This means that even a standard one-bedroom flat or three-bedroom family home may require a licence, regardless of how many people live there.
For many landlords, this represents a significant change from the licensing requirements they may previously have been familiar with.
WHY IS SELECTIVE LICENSING BEING INTRODUCED?
Local authorities have powers to introduce Selective Licensing schemes where certain housing-related problems have been identified.
These can include:
- Poor housing conditions and inadequate property maintenance.
- Persistent anti-social behaviour associated with privately rented properties.
- High levels of crime or deprivation.
- Areas experiencing low housing demand.
- Other qualifying local housing concerns, including high levels of migration.
By requiring landlords to obtain licences, councils aim to identify privately rented properties, establish who is responsible for managing them and ensure that appropriate standards are maintained.
Importantly, Selective Licensing is not an entirely new law. The framework has existed since 2004.
However, changes introduced in December 2024 removed the requirement for local authorities to obtain Secretary of State approval before implementing larger Selective Licensing schemes, provided the relevant statutory requirements are satisfied.
This has made it easier for councils to introduce or expand schemes, and several London boroughs have done so during 2026.
WHICH PROPERTIES REQUIRE A SELECTIVE LICENCE?
Where a property falls within an active Selective Licensing designation, most privately rented residential properties will require a licence unless a statutory exemption applies.
Examples can include:
- A one-bedroom flat rented to an individual.
- A two-bedroom apartment occupied by a couple.
- A three-bedroom house rented to a family.
- A four-bedroom property let to a single household.
- Other privately rented accommodation within the designated area.
A common misconception is that property licensing only applies to HMOs. This is not the case.
A landlord could own a perfectly maintained property, have excellent tenants and have experienced no problems throughout the tenancy, yet still be legally required to obtain a Selective Licence.
The requirement is primarily determined by the property’s location, how it is occupied and whether it falls within a designated licensing scheme.
Certain properties may be exempt, including some forms of accommodation already subject to other licensing arrangements. Landlords should never assume an exemption applies without checking the relevant council’s requirements.
SELECTIVE LICENSING IN LONDON: WHAT IS CHANGING IN 2026?
London has seen a considerable expansion of property licensing requirements, with individual boroughs introducing schemes covering specific wards, neighbourhoods or wider areas.
Several notable changes in 2026 include:
Enfield
A new Selective Licensing scheme commenced on 1 September 2026, covering designated areas of the borough.
This is particularly relevant to landlords with properties in and around North London, including areas within the Enfield borough that are close to Potters Bar.
Harrow
Harrow has expanded its Selective Licensing requirements across six wards during 2026, with different commencement dates between May and September.
Croydon
New Selective Licensing and Additional HMO Licensing schemes commenced on 25 September 2026.
Islington
A further Selective Licensing scheme is scheduled to commence on 23 November 2026.
These examples demonstrate why landlords cannot rely on previous assumptions about whether their properties require licensing.
A property that did not require a licence when a tenancy originally commenced may subsequently become subject to licensing following the introduction of a new scheme.
Equally, licensing requirements can vary between neighbouring streets or wards within the same borough.
Landlords should therefore check the precise property address against the relevant local authority’s current licensing designation.
HOW MUCH DOES A SELECTIVE LICENCE COST?
The cost of obtaining a Selective Licence varies depending on the local authority.
Fees can commonly amount to several hundred pounds or more than £1,000 per property, with some councils offering discounts for accredited landlords or other qualifying circumstances.
Licences are often granted for periods of up to five years, although their duration may be shorter depending on the circumstances and the licensing scheme.
For landlords with multiple properties, the combined cost can become substantial.
For example, a landlord with five rental properties, each requiring a £1,000 licence, could face an initial licensing cost of £5,000.
It is important to understand that licensing fees are generally payable for each property requiring a licence, rather than one fee covering an entire landlord’s portfolio.
There may also be additional costs associated with preparing the application, obtaining supporting documentation and carrying out any necessary works to satisfy the licence conditions.
WHAT DOCUMENTATION WILL LANDLORDS NEED?
Although individual council requirements differ, landlords applying for a Selective Licence may be asked to provide information and documentation relating to the property and its management.
This can include:
- Details of the property owner, proposed licence holder and managing agent.
- Gas Safety Certificates, where applicable.
- Electrical Installation Condition Reports (EICRs).
- Energy Performance Certificates (EPCs).
- Details of smoke alarms and carbon monoxide alarms.
- Information regarding the property’s occupancy and tenancy arrangements.
- Details of mortgage lenders or other interested parties.
- Evidence of appropriate property management arrangements.
- Information demonstrating that the proposed licence holder is a fit and proper person.
Councils may also impose specific licence conditions relating to property management, inspections, waste disposal, maintenance and the handling of anti-social behaviour.
Landlords must ensure that the information supplied is accurate and that the relevant licence conditions are complied with throughout the licence period.
Obtaining a licence is not simply an administrative exercise. It can create ongoing obligations that require active management.
WHAT HAPPENS IF A LANDLORD DOES NOT OBTAIN A LICENCE?
This is perhaps the most important consideration.
Failing to obtain a required Selective Licence is a criminal offence under the Housing Act 2004, unless a relevant statutory defence or exemption applies.
From 1 May 2026, the maximum civil financial penalty for relevant housing licensing offences increased to £40,000.
Depending on the circumstances, landlords may face:
1. Financial penalties of up to £40,000
Local authorities can impose substantial civil financial penalties as an alternative to prosecution for qualifying licensing offences.
2. Criminal prosecution
Landlords who operate properties without the required licence may face prosecution. Conviction can result in an unlimited fine.
3. Rent Repayment Orders
Tenants, and in certain circumstances local authorities, may be able to apply for a Rent Repayment Order where a qualifying offence has been committed.
Following changes under the Renters’ Rights Act, the maximum period covered by certain rent repayment orders has increased to 24 months.
The amount awarded is determined by the First-tier Tribunal and is not automatically equivalent to the maximum period.
4. Difficulties recovering possession
Licensing failures can also affect a landlord’s ability to use certain statutory possession procedures.
With the wider tenancy reforms introduced under the Renters’ Rights Act, landlords should obtain up-to-date advice on the possession rules applicable to their tenancy rather than relying on previous Section 21 procedures.
5. Additional enforcement and compliance costs
Where a council identifies licensing breaches or property management failures, landlords may also face further investigation, enforcement action and the expense of bringing the property into compliance.
For landlords who have simply overlooked a new licensing requirement, the potential financial consequences can be significant.
DOES SELECTIVE LICENSING APPLY TO EXISTING TENANCIES?
Yes.
One of the most important points for landlords to understand is that Selective Licensing can apply to existing tenancies, not just new lettings.
For example, a landlord may have rented a property to the same family for several years without previously needing a licence.
If the local authority subsequently introduces Selective Licensing covering that property, the landlord may become legally required to apply for a licence even though the tenancy arrangements have not changed.
The fact that a tenancy began before the licensing scheme was introduced does not automatically exempt the property.
Landlords should check the commencement date of the relevant scheme and ensure any required application is submitted within the applicable timescale.
WHAT IF MY PROPERTY IS MANAGED BY A LETTING AGENT?
Using a letting agent does not automatically remove the landlord’s legal responsibilities.
The licence holder and the persons responsible for managing or controlling the property must be properly identified, and responsibility for particular licensing offences can extend beyond the property owner.
A professional managing agent can assist with identifying licensing requirements, preparing applications, maintaining compliance records and ensuring relevant licence conditions are understood.
However, landlords should establish precisely what their management agreement includes and whether licensing applications and ongoing licence administration form part of the service.
At Auckland Estates, we encourage landlords to take a proactive approach rather than assuming that licensing is automatically covered by an existing management arrangement.
HOW CAN LANDLORDS CHECK WHETHER THEIR PROPERTY REQUIRES A LICENCE?
The first step is to establish which local authority is responsible for the property.
Landlords should then check whether that council operates a Selective Licensing scheme and, importantly, whether the property falls within the designated geographical area.
The Mayor of London provides an online property licensing checker, which can help landlords identify licensing schemes affecting properties across London.
London Property Licensing Checker:
Landlords should also consult the relevant council’s official licensing information, including designation maps, exemptions, fees and application requirements.
Where a new scheme has recently been announced, it is particularly important to verify the commencement date and any application deadlines.
IS SELECTIVE LICENSING THE SAME AS THE RENTERS’ RIGHTS ACT?
No. These are separate legal requirements, although both form part of the changing regulatory environment for landlords.
Selective Licensing is a local authority licensing system established under the Housing Act 2004.
The Renters’ Rights Act 2025 introduced wider reforms to the private rented sector, including changes to tenancy arrangements, enforcement powers and landlord responsibilities.
The Act also provides for a national Private Rented Sector Database, which is separate from existing local property licensing schemes and is subject to its own implementation timetable.
Landlords should not assume that registering with a future national database will remove the requirement to obtain a Selective Licence from their local council.
Where both requirements apply, landlords will need to comply with both.
WHAT SHOULD LANDLORDS BE DOING NOW?
With licensing schemes expanding across London, landlords should be reviewing their properties and taking steps to establish whether any additional requirements apply.
We would recommend:
- Check every rental property individually. Do not assume that all properties within the same borough are subject to identical requirements.
- Confirm whether an active or forthcoming scheme applies. Pay particular attention to commencement dates and designated ward boundaries.
- Review your compliance documentation. Ensure safety certificates and other relevant records are valid and readily available.
- Check the licence application requirements. Establish the relevant fee, documentation and application process.
- Clarify responsibilities with your managing agent. Confirm who will submit the application and who will monitor ongoing licence conditions.
- Keep licensing requirements under review. New schemes may be introduced, existing schemes renewed and designation boundaries changed.
Landlords with portfolios spread across several London boroughs should be particularly careful, as different properties may be subject to different licensing rules.
HOW AUCKLAND ESTATES CAN HELP
At Auckland Estates, we understand that keeping up with the increasing number of regulations affecting private landlords can be challenging.
With more than four decades of experience in the local property market, our team works closely with landlords to help them understand their responsibilities and manage their rental properties professionally.
Whether you own a single buy-to-let property or a larger residential portfolio, it is important to understand how changes to licensing requirements could affect you.
If you are unsure whether your property requires a Selective Licence, or would like to discuss your current letting and property management arrangements, our team would be happy to assist.
DON’T WAIT UNTIL YOUR LOCAL COUNCIL CONTACTS YOU.
Licensing requirements can apply even where a landlord has not received an individual notification.
Taking action now could help avoid unnecessary financial penalties and ensure your rental property continues to operate in accordance with the law.
Contact Auckland Estates
36 The Broadway, Darkes Lane, Potters Bar, Hertfordshire EN6 2HW
Website: www.aucklandestates.com
Selective Licensing: Are you aware, and is your rental property compliant? Speak to Auckland Estates today.
Disclaimer: This article provides general information based on legislation and licensing arrangements as at October 2026. Selective Licensing requirements vary between local authorities and may change. Landlords should verify the requirements for their individual property with the relevant council and seek appropriate professional advice where necessary.