Licensing requirements for landlords in England continue to expand, and it’s crucial to know whether they apply to your property—especially since many councils are introducing or extending Selective licensing schemes. Here’s a comprehensive overview of the three main types of licensing, the upcoming changes (some anticipated for 2025), and the potential consequences of not complying.
When Do You Need a Licence?
There are three main licensing schemes you should be aware of in England:
1. Selective Licensing
- What it is: Local councils can designate areas with problems such as low housing demand or persistent antisocial behaviour. Within these areas, every privately rented property (not just HMOs) must be licensed.
- Why it matters: Many London boroughs and other councils across the country have introduced or are proposing Selective licensing schemes.
- Action: If you’re unsure, check your local authority’s website or contact them directly to confirm whether your property falls under a Selective licensing designation.
2. Additional Licensing
- What it is: This covers smaller shared properties that do not meet the threshold for mandatory HMO licensing. If you rent to at least three tenants forming two or more separate households (i.e., not all from the same family) who share facilities like a kitchen or bathroom, you could need an Additional licence—if your council has introduced this type of scheme.
- Action: Again, verify with your local council. Additional licensing schemes are put in place at the local level to address issues that aren’t covered by Mandatory HMO licensing.
3. Mandatory HMO Licensing
- What it is: If your rental property is occupied by five or more tenants forming two or more households, it is classified as a House in Multiple Occupation (HMO) and always requires a mandatory HMO licence—regardless of local schemes.
- Why it matters: The aim is to ensure important safety and living standards are maintained for tenants. Expect stricter requirements around room sizes, safety checks, and amenities.
Upcoming Licensing Changes in 2025
In recent years, the government has given local councils in England some increased autonomy to introduce Selective licensing schemes, especially if they cover a smaller portion of the borough (historically, covering more than 20% of an area or private rented stock could still require Secretary of State approval). Here are three examples of proposed or upcoming expansions mentioned by various councils:
- Blackpool Council
- Plans to introduce or extend a new Selective licensing scheme from 1 April 2025 covering over 20% of the borough. Landlords in affected wards must apply for a licence for each rental property.
- Note: Always confirm final dates and coverage details directly with Blackpool Council, as these schemes can be subject to further consultations or amendments.
- Barking and Dagenham
- Historically has run borough-wide licensing schemes. The council is expected to renew or launch a new scheme from 6 April 2025, which may apply to all privately rented properties in the borough.
- Note: Check the council’s official website for final confirmation and exact boundaries.
- Lambeth Council
- Proposes rolling out a second Selective licensing scheme, possibly covering much of the borough (excluding Waterloo, South Bank, and Vauxhall) by July 2025.
- Note: This could affect tens of thousands of private rentals, but watch out for consultations and announcements to confirm the precise coverage and start date.
While these dates and coverage areas are the latest information available, always verify with official council sources, as local authorities often consult on and revise these schemes before final approval.
The Risks of Renting Without the Correct Licence
Failing to comply with licensing requirements can result in serious financial and legal consequences:
- Rent Repayment Orders (RROs): You could be required to repay up to 12 months’ rent if you operate an unlicensed property that needs a licence.
- Hefty Fines: Councils can impose unlimited fines in serious cases.
- Management Orders: A council could step in and take over management of your property.
- Restrictions on Serving Section 21: If a licence is required but not in place, you cannot validly serve a Section 21 eviction notice (while they remain in effect).
- Banning Orders: In extreme cases, repeat or serious offenders may be banned from letting properties altogether.
- Reputation Damage: Non-compliance makes it harder to attract reliable tenants and can tarnish your standing in the community.
Is Applying for a Licence Difficult?
The application process varies by council but generally includes:
- Application Form: Usually available online.
- Property Details: Size, facilities, number of tenants, etc.
- Safety Documentation: Evidence of valid gas safety, electrical safety, and EPC certificates.
- Possible Inspection: The council might wish to inspect the property before granting a licence.
Many councils provide clear guidance on their websites, and some offer checklists or step-by-step instructions. Having all your safety certificates and paperwork in order simplifies the process.
Staying Ahead of Licensing Changes
Licensing can seem like yet another administrative hurdle—but it’s essential to avoid costly mistakes. Keep an eye on your local council’s consultations, public notices, and official announcements. Proposed start dates or designated wards can change after a formal consultation, so be sure to check back regularly.
If you need help navigating the applications, or simply want support in meeting deadlines and compliance, our Licensing Assistance resource is designed to guide you through the essentials.
In Summary
- Selective, Additional, and Mandatory HMO licensing each serve different purposes. Make sure you know which one applies to your property.
- 2025 will see several new or expanded licensing schemes—particularly in Blackpool, Barking and Dagenham, and Lambeth—though specifics may still be under consultation.
- Penalties for renting an unlicensed property can be severe, ranging from rent repayment orders to outright bans on letting.
- The application process isn’t typically difficult if you keep your documentation organised and meet local safety standards.
Until next time,
The Possession Proceedings Team
