Selective Licensing is a scheme Local Authorities in England can choose to implement to help ensure that homes in the Private Rended Sector (PRS) meet minimum standards. Introduced by the Housing Act 2004, a Local Authority can designate all or part of its area as being subject to selective licensing. All private landlords in an area covered by selective licensing must obtain a licence and agree to comply with conditions of the scheme. Fees are charged to landlords to obtain a licence, and fines of up to £30,000 can be levied for non-compliance with the scheme. Some local authorities are considering how these fees can be invested in standards enorcement and support.
Since the end of 2024, Local Authorities do not need to seek approval from the Secretary of State before introducing the scheme, but they must consult with stakeholders, in the area. Selective licensing can only be used when an area is experiencing problems such as low housing demand, anti-social behaviour, poor housing quality, high levels of deprivation and crime.
