Birmingham City Council has used selective licensing across targeted wards to drive up private rented standards in areas with high concentrations of rented stock. Inside a designation, every private rented dwelling needs a council-issued licence, not just HMOs. This guide covers where it applies, what it costs, and what happens if you operate without a licence.
Multiple wards
Currently or recently designated
~£700
Typical 5-year licence fee
£30,000
Max civil penalty per offence
12 months
Rent repayment exposure
Selective licensing under Part 3 of the Housing Act 2004 lets a council require every private rented dwelling in a designated area to hold a licence. It targets areas with one or more of: low housing demand, anti-social behaviour, poor housing conditions, high migration, high crime, or high deprivation.
Designations last up to five years. The Secretary of State must approve designations covering more than 20 percent of the council area or PRS stock; smaller designations are approved by the council itself.
Birmingham's selective licensing has at various times covered:
Schemes expire and are re-declared. Always confirm the current designation map on birmingham.gov.uk before letting. PropReady flags Birmingham selective licensing areas by postcode.
Inside a designated area, you need a selective licence if:
The licence is granted to the legal owner. Letting agents do not hold licences in their own right.
Birmingham's selective licence fee is typically around £700 for a five-year licence, with discounts for accredited landlords. The fee splits into a non-refundable application charge and a grant charge payable on approval.
Application process:
Processing takes six to ten weeks. Existing landlords inside a new designation usually have a transition window to apply.
Standard Birmingham selective licence conditions:
Selective licensing continues after 1 May 2026 unchanged. The Renters' Rights Act adds:
Birmingham City Council's Private Rented Sector team handles selective licensing applications and enforcement. Search "selective licensing" on birmingham.gov.uk for the current boundary map and online portal.
Search "selective licensing" on birmingham.gov.uk and use the boundary tool, or contact the council's housing licensing team. PropReady flags this automatically when you add the property.
No. The two regimes do not overlap on the same property. An HMO needs the HMO licence; a non-HMO inside a selective licensing area needs the selective licence. The same property cannot need both.
NRLA and MAPS accredited landlords typically receive a discount on the application fee. The exact percentage is set by the council and varies by scheme.
Yes, where the application is genuinely complete and properly submitted. A defective or incomplete application does not give the defence. Keep evidence of submission.
No. Licences are personal to the holder and not transferable. The new owner must apply for a fresh licence in their own name.
No. Selective licensing continues unchanged. The Renters' Rights Act adds national obligations (PRS Database, Ombudsman, Section 21 abolition) that stack on top of the licensing duty.
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