About selective landlord licensing

Selective licensing

Where the relevant legal test is met, property licensing allows us to regulate private rented properties in the area by issuing a licence to the person responsible for the property. This is usually the landlord. These powers are set out in the Housing Act 2004, part 3 (opens new window).

Landlords in that area are legally required to apply for a licence and meet certain licence conditions for the duration of the licence.

We must be satisfied that the area is suffering from one or more of the following criteria:

• low demand for housing
• a significant and persistent problem caused by anti-social behaviour
• poor property conditions
• high levels of migration
• high levels of deprivation
• high levels of crime

 Additional licensing

Housing Act 2004 (opens new window) allows us to designate areas as being subject to an additional licensing scheme for a period of up to five years. Included are some or all of the houses in multiple occupation (HMO) in that area, which are not already subject to mandatory HMO licensing.

These are generally smaller HMO properties occupied by three or four persons, living in two or more households, and where those persons share facilities, such as kitchens, bathrooms, toilets.

Additional licensing can also include properties converted into flats known as section 257 HMOs. These are buildings which have been converted into and consist entirely of self-contained flats where less than two thirds of the flats are owner-occupied, and the conversion into flats did not comply with the appropriate building regulations.

 Aims and objectives

By raising standards in the private rented sector we aim to reduce:

• low housing demand
• antisocial behaviour
• deprivation 

Ultimately leading to improvements in the overall social and economic conditions in the area creating a strong, healthy and vibrant neighbourhood.

These are the key desired outcomes over the period of selective licensing:

• improve housing conditions in the private rented sector (PRS) by eliminating poor property standards
• improve management standards in PRS properties
• reduce anti-social behaviour (ASB) and repeat ASB incidents in single family dwellings and smaller HMOs
• address poor housing conditions and other issues that exacerbate deprivation, including overcrowding and fuel poverty
• increase awareness for tenants of the minimum standards to be expected in rented accommodation and what their other rights are when renting in the PRS

Meeting the objectives within the licensing scheme

1. We will monitor and ensure that the licensed properties and licence conditions are robustly enforced and complied with.
2. Landlords and agents operating in the area need to be 'fit and proper' and able to manage properties.
3. We can take action against landlords who are not actively managing their properties.
4. Poor housing conditions will be improved with category 1 and 2 hazards resolved (opens new window) (including issues such as damp and mould), through increased inspections.
5. Landlords and agents will be more accountable for the tenants who live in their property.
6. Tenants will become more aware of their responsibilities for maintaining their tenancy.
7. Increase the knowledge of the private rented sector in the borough, which will enable targeted enforcement and support for landlords.
8. Prevention of overcrowding through better management of property occupancy
9. A greater number of landlords will be accredited, improving the professionalism of landlords. We will keep landlords informed of the latest legislation and good practice.   
10. Improved engagement with tenants and landlords.
11. Reduction of ASB through better management of properties.
12. Tenants will become more aware that they must act in a responsible manner and not be associated with antisocial behaviour.
13. The reduction of ASB will improve these problem areas, making them safer and more desirable places to live in.
14. Reduction in fly-tipping and other forms of environmental nuisance
15. Tenants' advice will be available online.
16. Improved tenants' support through work with third parties.
17. Tenants will know their rights and responsibilities. They will have a greater awareness of the support available through our services.

Who licensing applies to

In areas where selective licensing is applied, all landlords must have a licence to rent out property.

To qualify for a licence, a landlord must be able to show that they are:

• acting within the law
• taking adequate steps to manage their properties
• keeping them safe.
• a 'fit and proper' person test to ensure their suitability to manage a tenancy.

Properties with a mandatory HMO licence are exempt. There are also several other circumstances where you do not have to apply for a licence. Refer to The Selective Licensing of Houses (Specified Exemptions) (England) Order 2006 (opens new window) for a full list of exemptions.

Penalties

Any licence holder found in breach of the licence conditions could face either a financial penalty of up to £30,000 or a prosecution. In this situation we can revoke the licence and make a Management Order, taking over the management of the property.

Refer to our civil penalties enforcement guidance for further information.

Enforcement tools

We use a wide range of tools to tackle poor property conditions and inadequate tenancy management, such as:

• mandatory HMO Licensing
• additional HMO Licensing
• empty property enforcement
• housing standards - Housing health and safety rating system: guidance for landlords and property-related professionals (opens new window)
• EPC - The Energy Performance of Buildings (England and Wales) Regulations 2012 (opens new window)
• The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 (opens new window)
• Public spaces protection orders

Enforcement approach

Enforcement action will be based on risk and how severe the offence is.

Assessment of risk will be based on current legislation and specific guidance. We will recover costs from those landlords who are not being proactive in managing or letting properties.

Failing to comply with the regulatory framework could result in the following:

• advice given: informal approach
• warning: investigation, warning letters
• initial enforcement: legal notices, licence revocations, licence refusal
• substantive enforcement: legal notices, interim management orders
• breach: civil penalties, prosecution, final management orders