Selective Licensing: The compliance risk many landlords still underestimate

17th February 2026

Selective licensing is expanding across England, and councils are increasing enforcement. Many landlords only discover their properties fall within designated areas when formal action begins — by then, financial exposure can be significant.

Even new-build or professionally managed flats can require licences, and each unit may need its own application. Ignorance is rarely accepted as a defence.

Why selective licensing matters?

Selective licensing schemes aim to improve housing standards in areas affected by anti-social behaviour or poor property management. Each council sets its own zones, processes, licence conditions, and fees — meaning requirements vary and can change without notice.

Landlords who do not actively monitor local authority announcements risk non-compliance, even for high-quality or newly built properties.

Who is most at risk?

Landlords with large portfolios often have compliance systems in place. Those most exposed include:

  • Semi-professional landlords

  • Retired landlords relying on rental income

  • “Accidental landlords” letting property due to inheritance or relocation

Legal responsibility for licences usually remains with the landlord, even if a managing agent is involved.

Case study

A landlord with 35 flats in a new development faced prosecution because each unit required its own licence.

Consequences included:

  • 35 separate licence applications

  • £22,500 in application fees

  • Additional time and administrative costs

Initially, the landlord was convicted of 29 offences, with fines and costs exceeding £56,000.

The appeal outcome

On appeal, evidence showed valid applications had been submitted, supporting documentation provided, and payment arrangements discussed. Technical or administrative issues affecting processing were also accepted.

  • 25 of the 29 convictions were overturned

  • Remaining matters were resolved on a limited culpability basis, resulting in a conditional discharge and no financial penalty

  • Overall financial sanctions were substantially reduced

This case demonstrates the importance of keeping clear records and seeking advice early when compliance issues arise.

Practical considerations for landlords

  • Licences apply per unit, so cumulative fees can be significant for multiple properties

  • High-quality or new-build developments are not automatically exempt

  • Local authorities increasingly use council tax and EPC records to identify unlicensed properties

Treat licensing as an ongoing obligation

Selective licensing should not be a one-off administrative task. Landlords should:

  • Regularly review council designations

  • Clarify responsibilities with managing agents

  • Maintain full records of applications and correspondence

  • Seek advice promptly if uncertainty arises

Proactive, documented engagement with authorities helps landlords address concerns before enforcement action escalates.

If you need guidance on selective licensing compliance, navigating enforcement action, or managing licensing disputes, we’re here to help. Please get in touch with Emma at EmmaReilly@schofieldsweeney.co.uk.

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