Selective Licensing Explained: Is Your London Property Affected?

Selective licensing is often misunderstood. Unlike HMO licensing which targets specific property types, selective licensing can require any privately rented property in a designated area to be licensed — including properties with a single tenancy.

What is selective licensing?

Under Part 3 of the Housing Act 2004, local authorities can designate areas where all private rented properties must be licensed. They can do this if the area has a significant proportion of privately rented properties and the council is satisfied that this will improve conditions for residents.

Selective licensing schemes require landlords to obtain a licence, pay a fee to the council, and meet conditions relating to property management and standards.

How is it different from HMO licensing?

The key difference is scope. HMO licensing targets specific property types — those occupied by multiple households. Selective licensing applies to all privately rented properties within designated boundaries, including those with a single tenancy.

If you rent a property to one couple in a borough with a selective licensing scheme, and your property is within a designated zone, you may need a selective licence.

What to do

Check whether your London property falls within a selective licensing zone. Boundaries are specific — a street on one side of a road may be in a designated area while the street opposite is not.

Contact us for a free property-specific assessment.