Selective Licensing is increasing – landlords urged to abide by the rules

Propertymark has told landlords to abide by the increasing number of Selective Licensing schemes being introduced by councils. 

Such schemes give  local authorities the power to require landlords in designated areas to obtain a licence before letting out a property, with fines of up to £30,000, a rent repayment order, or criminal prosecution, if landlords do not comply.  

The letting agents’ trade body has issued this guidance:

When do landlords need to apply?

Landlords must apply for a licence as soon as their property falls within a designated selective licensing area. Each local authority sets its own start dates, application deadlines, and renewal cycles, and these can vary considerably.

Landlords should check:

• Whether their postcode is included in a designated area
• The date the scheme takes effect
• How long the licence lasts (usually up to five years)
• Whether any exemptions apply

How to apply for a Selective Licence

Although processes differ between councils, applications usually require:

1. A complete licence application form (online through the local authority’s website)
2. Proof of identity and ownership
3. Safety documentation, such as:
   – Gas Safety Certificates
   – Electrical Installation Condition Reports (EICR)
   – Energy Performance Certificates (EPC)
   – Smoke and carbon monoxide alarm compliance
4. A management plan, if required
5. Payment of the licensing fee (in one or two stages, depending on the authority)

Licences may include specific conditions. These can include minimum security requirements, tenancy management obligations, property maintenance schedules, and evidence of appropriate handling of antisocial behaviour.

What research should landlords do?

Before letting a property, or renewing a tenancy, Propertymark advises landlords to:

• Confirm whether the property is in a licensing area.
• Check for additional licensing schemes, including HMO or additional licensing.
• Assess the financial implications, including fees and compliance upgrades.
• Review conditions associated with the licence.
• Understand the penalties for late or non-application.
• Consult professional advice from regulated agents or legal specialists.

If your letting agent has offered Selective Licensing support

Many letting agents now offer selective licensing as an additional service, but landlords should ensure:

• The agent is Propertymark Protected and regulated. You can check if an agent is regulated with Propertymark here: www.propertymark.co.uk/find-an-expert
• The service includes full preparation and submission of the licence application.
• The agent will manage ongoing compliance, not just the initial application.
• Any additional costs are transparent and formally agreed.
• You remain aware that as the landlord, you are ultimately responsible, even when an agent submits the application on your behalf.

Propertymark stresses that engaging a qualified letting agent can significantly reduce the administrative burden and ensure that all documentation meets local authority requirements.

Nathan Emerson, chief executive of Propertymark, comments: “We believe that licensing is not the best method when looking to improve housing stock within the private rented sector. Instead of this, authorities should adopt a collaborative approach, building better relationships with letting agents, landlords, professional bodies, and public services to tackle issues within the sector.

“However, Selective Licensing is becoming increasingly common, and landlords must stay ahead of their responsibilities. Failure to comply can have serious consequences, but with the right guidance and the support of a professional, regulated letting agent, landlords can navigate the process smoothly and confidently.”

This article is taken from Landlord Today