Selective licensing in London covers every private rented dwelling, not just HMOs, in designated areas. Some London boroughs have applied selective licensing borough-wide; others target specific wards. Operating without a required licence is a criminal offence with civil penalties up to £30,000 per property. This guide explains where it applies in London and what landlords must do.
Borough-wide
Schemes in Newham, Waltham Forest, Brent
£500-£900
Typical 5-year licence fee
£30,000
Max civil penalty per offence
12 months
Rent repayment exposure
Selective licensing is a council power under Part 3 of the Housing Act 2004. Unlike HMO licensing, it covers every private rented dwelling in a designated area, including single-family houses, flats, and shared houses below the HMO threshold.
The Secretary of State must approve any designation that covers more than 20 percent of the local authority area or more than 20 percent of private rented homes. Several London boroughs have secured borough-wide approval, making them some of the most extensively licensed parts of England.
Boroughs that have run selective licensing in recent years:
Schemes expire and renew on different timetables. Always check the current designation map on the relevant borough website before letting.
Inside a designated area, you need a selective licence if:
The licence is held in the legal owner's name. Letting agents do not hold their own licences; they manage on behalf of the licensed landlord.
London selective licence fees vary by borough but typically fall between £500 and £900 for a five-year licence. Accredited landlords (LLAS, NRLA, or other recognised schemes) usually get a 10 to 25 percent discount.
The application process:
Processing takes six to twelve weeks. Existing landlords inside a new designation are usually given a transitional window to apply.
Common London-specific conditions include:
Boroughs may attach property-specific conditions in response to inspection findings.
Operating without a required selective licence in London exposes you to:
The court can and does refuse Section 8 possession to unlicensed landlords even where the underlying ground (rent arrears, anti-social behaviour, sale) is strong on its facts.
Selective licensing in London is run borough by borough. Use the specific borough website's licensing portal. PropReady identifies which scheme applies based on the property's postcode.
Newham was the first English borough with borough-wide selective licensing and has renewed the scheme multiple times. Waltham Forest also has borough-wide selective licensing. Brent has extensive coverage across multiple wards.
Search "selective licensing" on the relevant borough website and use the postcode lookup. PropReady automatically flags the scheme when you add a property.
No. A property cannot have both at once. If your property is an HMO, the HMO licence (mandatory or additional) takes precedence. If it is not an HMO, the selective licence applies where the area is designated.
No. Licences are personal to the named licence holder and not transferable. The new owner must apply for a fresh licence.
Most London boroughs offer 10 to 25 percent off the licence fee for accredited landlords. The exact rate varies. NRLA accreditation is often accepted in lieu of or alongside LLAS.
No. Selective licensing continues unchanged. The Renters' Rights Act adds additional national obligations (PRS Database, Ombudsman, Section 21 abolition) that stack on top of borough licensing duties.
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