Local councils in England can require a licence for any private rented property in a designated area — not just HMOs. Check if your property needs one.
England only. This guide applies to private rented property in England. Wales and Scotland have separate legal frameworks — dedicated guides will be published separately.
Under the Housing Act 2004, local authorities in England can designate areas where all private rented properties require a licence — regardless of whether the property is an HMO. This is called selective licensing and targets areas with poor property conditions, antisocial behaviour, or migration pressures.
A selective licence is required when the property is in a council-designated area and let to a single household (or two unrelated people). Schemes are approved by the government and typically run for five years.
| Feature | Selective licensing | HMO licensing |
|---|---|---|
| Property type | Any private rented home | HMOs (3+ tenants, shared facilities) |
| Scope | Council-designated areas only | Mandatory (5+ tenants) or additional schemes |
| Set by | Local council designation | National rules + local additional schemes |
| PRS Database | Separate requirement | Separate requirement |
| Offence | Penalty |
|---|---|
| Letting without selective licence | Unlimited fine (criminal) |
| Breach of licence conditions | Civil penalty up to £30,000 |
| Rent repayment order | Up to 12 months' rent repayable to tenant |
A power allowing local councils in England to designate areas where all private rented properties — not just HMOs — require a licence. It aims to raise standards in areas with low housing demand or high deprivation.
Check your local council's website. Schemes are area-specific and time-limited (usually five years). Not all councils operate selective licensing.
HMO licensing applies to houses in multiple occupation (3+ tenants from 2+ households). Selective licensing can apply to any private rented property, including single-let flats and houses. See our HMO compliance guide for HMO-specific rules.
Criminal prosecution with unlimited fines, civil penalties up to £30,000, rent repayment orders (up to 12 months' rent), and inability to use Section 21 (until abolition) or Section 8 grounds.
No. Selective licensing is a local council scheme. The PRS Database is a new national register under the Renters' Rights Act. Both may apply to the same property.
General information only — not legal advice. Laws change; verify against current legislation and seek professional advice for your situation.
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