Selective licensing has become an increasingly significant compliance consideration for private landlords, yet many remain unaware that it applies to them until enforcement action is underway.

Although the policy was introduced to improve housing standards in specific areas, its expansion across parts of England means that landlords must now take a more active role in monitoring local requirements. For semi-professional and accidental landlords in particular, the risks associated with overlooking a licence requirement can be substantial.

The Expanding Reach of Selective Licensing

Selective licensing schemes require private landlords in designated areas to obtain a licence from the local authority before letting a property. The stated aim is to improve management standards and housing conditions in areas experiencing issues such as anti-social behaviour or poor property maintenance.

However, the operation of schemes varies between councils. Each authority sets its own application processes, licence conditions and fee structures. According to the National Residential Landlords Association, dozens of councils across England operate selective licensing schemes, with further designations under consideration in a number of areas.

Emma Reilly, Solicitor at Schofield Sweeney (pictured) specialising in landlord and property litigation, notes that as schemes expand geographically, landlords may find that properties which were previously unaffected become subject to licensing requirements.

Because selective licensing applies only within designated areas rather than nationally, landlords can remain unaware that a licence is required unless they regularly review local authority announcements.

Who Is Most Affected?

Larger portfolio landlords often have compliance systems in place to monitor regulatory developments. Those at greater risk of oversight may include:

• Semi-professional landlords operating alongside full-time employment
• Individuals relying on rental income in retirement
• “Accidental landlords” letting property due to inheritance, relocation or changed personal circumstances

In many cases, landlords may assume managing agents are overseeing licensing obligations. However, legal responsibility for obtaining the appropriate licence generally remains with the landlord.

Lack of awareness is not typically treated as a defence once enforcement action has commenced.

A Case Study in Compliance Complexity

A recent case illustrates how licensing requirements can create significant exposure, even where a landlord has engaged with the local authority.

The landlord owned a newly built development of 40 flats and held 35 individual units within the building. The development fell within a selective licensing area, meaning each flat required a separate licence.

This resulted in:

• 35 individual licence applications
• £22,500 in application fees
• Additional time and expense obtaining and submitting supporting documentation

The landlord submitted a number of applications before the deadline and engaged with the council regarding deferred payment arrangements for the remaining units. Nevertheless, she was charged with 29 offences relating to unlicensed properties and was convicted in the Magistrates’ Court.

The court imposed fines and costs totalling more than £56,000.

The Appeal Outcome

On appeal, it was argued that valid applications had been submitted using a council-issued payment bypass mechanism, that supporting documentation had been provided, and that there was evidence of an intention to licence all relevant properties.

It was also accepted that technical or administrative issues may have affected the processing of certain applications.

Prior to the full appeal hearing, convictions relating to 25 of the 29 properties were overturned. The remaining matters were resolved on an agreed basis reflecting limited culpability, resulting in a conditional discharge and no financial penalty.

The overall financial sanction was substantially reduced.

According to Emma Reilly, the case highlights the importance of maintaining clear records of applications and correspondence, and of seeking advice promptly where disputes arise regarding compliance.

Proportionality and Practical Considerations

Selective licensing schemes are designed to address specific housing management concerns within defined areas. However, because designations typically apply across geographic zones rather than to particular categories of property, high-quality or newly built developments may fall within the same framework as older housing stock.

In addition, per-unit fee structures can have cumulative financial implications where landlords hold multiple properties within a designated area.

While these factors do not alter the legal obligation to obtain a licence, they underline the need for careful planning and proactive engagement with licensing authorities.

An Ongoing Compliance Obligation

Local authorities increasingly make use of data sources such as council tax records and EPC registers to identify potentially unlicensed properties. Civil penalties can reach £30,000 per offence, and Rent Repayment Orders may require repayment of up to 12 months’ rent.

For that reason, selective licensing should be treated as an ongoing compliance requirement rather than a one-off administrative task. Regular monitoring of local authority websites, confirmation of agent responsibilities and early legal advice where uncertainty arises are prudent steps.

As Emma Reilly advises, landlords who take proactive steps and maintain documented engagement with local authorities are better positioned to address concerns before they escalate.

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About the Author

Emma Reilly is a solicitor at Schofield Sweeney specialising in landlord and property litigation. She advises private landlords, investors and managing agents on regulatory compliance, enforcement action and licensing schemes, with particular expertise in selective licensing, HMO licensing, civil penalties and Rent Repayment Orders. Emma regularly represents clients in Magistrates’ Courts and on appeal, helping landlords to challenge disproportionate enforcement and minimise financial risk.

Find out more about Emma and her work:

🔗 https://www.schofieldsweeney.co.uk/team/emma-reilly/
🔗 https://www.schofieldsweeney.co.uk/services/property-litigation/