Selective Licensing

Selective licensing is a scheme that local councils can implement in designated areas under the Housing Act 2004. It requires all private landlords renting residential properties in the designated area to hold a council licence, regardless of whether the property is a single let, HMO, or any other type.

Selective licensing is used in areas with specific problems: poor housing conditions, high levels of deprivation, significant anti-social behaviour linked to private rented sector properties, or high migration that has created management problems.

The licence conditions typically require the landlord to: - Ensure the property meets minimum housing standards - Hold a valid gas safety certificate and EICR - Have a proper tenancy management process - Respond promptly to complaints about antisocial behaviour by tenants

Licence fees vary by council: typically £300-£800 for a 5-year licence. Some councils offer reduced fees for accredited landlords.

Before purchasing in any area, check whether selective licensing applies by searching the council's website. If it does, factor the licence cost and any required improvements into your investment analysis.