When letting a property, it’s important for you to stay up to date with the latest regulations and requirements in the rental market. One such regulation that you need to be aware of is selective licensing. In this blog, we’ll provide you with all the information you need to know about selective licensing, including what it is, who needs to comply with it, how to apply for it, and the potential consequences of non-compliance.

What is selective licensing?

Selective licensing is a scheme introduced by local authorities to regulate and improve the standard of privately rented properties in specific areas. It allows local authorities to identify properties that are not up to standard and require additional licensing to improve the quality of the housing stock. The purpose of selective licensing is to ensure that landlords provide safe and decent accommodation to their tenants.

Selective licensing schemes have been implemented in various areas across the UK, including Liverpool, Manchester, and some London boroughs. These schemes typically target areas with high levels of anti-social behaviour, crime, and low housing standards.

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Who needs to comply with selective licensing?

The criteria for determining whether a landlord needs to comply with selective licensing varies between local authorities. However, landlords who own properties in an area with a selective licensing scheme in place will need to apply for a licence.

Properties that are typically affected by selective licensing schemes include Houses in Multiple Occupation (HMOs), properties that have been converted into flats, and properties that are rented to multiple tenants who are not members of the same family.

There are some scenarios where a landlord may be exempt from selective licensing, such as if they already hold an HMO licence, or if the property is managed by a social housing provider.

How to apply for selective licensing

The application process for selective licensing varies between local authorities, but typically involves completing an online application form and providing documentation to support the application. This may include proof of ownership, gas and electrical safety certificates, and an Energy Performance Certificate (EPC).

What are the consequences of non-compliance?

The consequences of non-compliance with selective licensing requirements can be severe. Local authorities have the power to issue fines, prosecute landlords, and even impose a rent repayment order that requires landlords to repay up to 12 months of rent to their tenants.

Landlords who fail to apply for a selective licensing scheme can face a fine of up to £30,000, so it’s important to ensure that you comply with the requirements.

In addition to financial penalties, non-compliance can also have an impact on a landlord’s reputation and ability to operate in the rental market. It can lead to negative publicity, which can make it more difficult to attract tenants and secure new properties.

Selective licensing is an important regulation that landlords in the UK need to be aware of. Understanding the requirements of selective licensing and complying with them is essential to ensure that you provide safe and decent accommodation to your tenants. It’s important to remember that non-compliance can result in severe penalties, including fines, prosecution, and damage to your reputation. If you need further information about selective licensing, we recommend seeking advice from a legal or property expert in your area.

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