Selective Licensing
Selective licensing is a scheme under Part 3 of the Housing Act 2004 whereby a local council designates an area in which all privately rented properties must be licensed. It can be introduced to tackle problems such as low housing demand, significant anti-social behaviour, high levels of migration, or high levels of deprivation. Landlords who let without a licence can be fined up to £30,000 per offence and may be required to repay rent under a Rent Repayment Order.
Part 3 of the Housing Act 2004 gives local authorities power to introduce selective licensing where a privately rented area suffers from low demand, significant and persistent antisocial behaviour, high crime, or high deprivation. Where a scheme would cover more than 20% of the council's geographic area or more than 20% of its privately rented housing stock, the Secretary of State's confirmation is required before designation. Licence fees typically range from £400 to £900 and licences last up to five years. Conditions attached to licences commonly include gas safety certificates, EPC ratings, and ASB management procedures. Landlords operating without a licence face a civil penalty of up to £30,000 or prosecution with an unlimited fine. Critically, tenants can apply for a Rent Repayment Order (RRO) at the First-tier Tribunal to recover up to 12 months' rent paid while the property was unlicensed — even if the landlord was unaware of the scheme.