What Are Selective Licensing Schemes?
In most parts of England, you do not need a licence to be a landlord and let out your property. Assuming, that is, it is not a house in multiple occupation or HMO. You can just let out your property without any kind of licence.
The exception to this rule is if a property is located in what is known as a selective licensing area. In selective licensing areas, all properties which are rented out need a licence. This applies whether they are houses or flats and no matter how many or few tenants live there.
The reasons for introducing selective licensing
In general, selective licensing schemes are introduced by local authorities in order to tackle problems they have identified in the private rented sector or PRS in their area.
The reasons why selective licensing schemes are introduced can include that the area is one which is experiencing low housing demand, perhaps because people are reluctant to move there, or that it is likely to become such an area. It can be because the area has a significant and persistent problem with anti-social behaviour (ASB). Councils can propose selective licensing schemes if the area has high levels of deprivation, high levels of crime or high levels of migration.
Local councils can also propose introducing a selective licensing scheme if they believe the area has what is known as poor property conditions. Poor property conditions are the main reason local councils put forward as to why a selective licensing scheme is needed in an area.
