Licensing is expanding faster across England than at any point since the schemes began, and the penalties for getting it wrong have just increased significantly. If you have not checked your properties recently, this is worth twenty minutes.
Why schemes are suddenly spreading
One statutory instrument explains most of it.
The Selective Licensing General Approval 2024, made on 23 December 2024, removed the central government approval that previously capped how much of an area a council could license. Before that, a scheme covering more than 20% of an area needed sign-off from the Secretary of State.
That cap is gone, and councils have moved quickly. Borough-wide and near-borough-wide schemes are now common where they were once exceptional.
MPs have separately urged ministers to make it easier still for councils to introduce schemes, so the direction of travel is clear.
The three regimes — and why they overlap
Most confusion comes from treating these as alternatives. They are not. A single property can need more than one licence at the same time.
1. Mandatory HMO licensing
Applies everywhere in England. Any HMO let to five or more people forming two or more households, sharing a kitchen, bathroom or toilet. In force since 2006 under the Housing Act 2004. No council discretion — it simply applies.
2. Additional HMO licensing
A discretionary scheme catching smaller HMOs, typically three or four occupants. Over 70 English councils now operate one, including Bristol, Nottingham, Brighton and Hove, Liverpool, Sheffield, Oxford and Salford.
3. Selective licensing
The one that catches people out. It applies to all privately rented properties in a designated area, regardless of occupancy or HMO status.
A one-bedroom flat let to a single tenant in a selective licensing ward needs a licence exactly as a shared house does. Being “just a normal buy-to-let” is not an exemption.
The overlap in practice: a four-person shared house in a borough with both selective and additional schemes may need two licences from the same council, each with its own fee, conditions and renewal date.
What it costs
Fees are set locally and vary widely. Some current examples give a sense of scale:
- Waltham Forest — £895 selective, around £1,000 additional HMO, borough-wide since May 2025
- Westminster — an additional HMO licence fee of £1,540 from 31 August, taking total licensing costs to around £2,167
Licences typically last up to five years. Budget for renewal, and note that schemes change boundaries at renewal — a property outside a scheme today can be inside it after the next designation.
The penalties went up on 1 May 2026
This is the part that has changed materially, and it has had little coverage.
- Civil penalty raised from £30,000 to £40,000 per offence by the Renters’ Rights Act
- Rent Repayment Orders extended from 12 to 24 months’ rent for offences from 1 May 2026 — claimable by the tenant, not the council
- Criminal prosecution remains available, carrying an unlimited fine
- Banning orders and council management takeover in serious cases
The Rent Repayment Order change is the one to focus on. Doubling the exposure to two years’ rent turns an administrative oversight into a potentially five-figure loss, and the tenant has every incentive to pursue it.
Licensing and possession are now linked
An unlicensed property has always been a compliance problem. It is now a possession problem too.
Under the old system a landlord could not serve a valid Section 21 notice on an unlicensed property. Section 21 has gone, but the principle has hardened elsewhere: once the Private Rented Sector Database is live, unregistered landlords can generally be blocked from obtaining a possession order.
Combine that with possession now requiring a Section 8 ground and a hearing, and licensing failures become very expensive very quickly.
How to check — properly
Do not rely on what was true when you bought the property.
- Check with the council directly, by postcode. Boundaries are ward-level and change at renewal. Third-party tools are a starting point, not an answer.
- Check all three regimes for every property — mandatory, additional and selective.
- Confirm existing licences have not lapsed. Five-year licences from 2020 and 2021 are expiring now.
- Diarise renewal dates alongside your gas and electrical certificates.
- Ask your letting agent in writing which licences are held and when they expire. The legal duty sits with you.
Typical application documents: gas safety certificate, EICR, fire risk assessment, EPC at minimum band E, floor plans with room measurements, building insurance and proof of ownership.
Frequently asked questions
Does a single tenant flat need a licence?
In a selective licensing area, yes. Selective licensing applies to all private rented properties regardless of occupancy. Outside such an area, a single-household let generally needs no licence.
Can I need two licences on one property?
Yes. A small HMO in a borough with both selective and additional schemes may require both, each with its own fee and conditions. This is common in parts of London.
What if I did not know a scheme had started?
Ignorance is not a defence. Councils consult before designating a scheme, but they are not obliged to write to every landlord. Applying late is far better than waiting to be found — some councils treat a voluntary application more favourably than an enforcement discovery.
Can a tenant claim rent back if I am unlicensed?
Yes. Rent Repayment Orders can now cover up to 24 months’ rent for offences from 1 May 2026, up from 12. The tenant applies to the First-tier Tribunal directly.
Does the PRS Database replace licensing?
No. The database sits alongside licensing, not instead of it. You will hold a licence and a database entry, with separate enforcement routes for each.
My agent said it is handled — am I safe?
Get it in writing, with licence numbers and expiry dates. The offence of letting an unlicensed property attaches to the person in control or managing the property, and that is usually you.
- Selective licensing covers all rentals in a designated area, not just HMOs
- Civil penalty rose to £40,000 on 1 May 2026
- Rent Repayment Orders now up to 24 months’ rent
- The 2024 General Approval removed the cap on scheme size
- Over 70 councils run additional HMO schemes
- One property can need two licences
- Check by postcode with the council, not from memory
Related Articles
- The PRS Database explained
- Life after Section 21 — how possession works now
- Landlord compliance deadlines 2026–2030
- Ground 4A — student HMO possession explained
- HMO planning appeals — what Article 4 really does
RentalReadyUK produces plain-English compliance guides for private landlords in England. Licensing schemes are local and change frequently — always confirm your position directly with the relevant council. This article is general information and not legal advice.