Selective Property Licensing
Understanding Selective Property Licensing
Selective Property Licensing is a regulatory scheme implemented by local authorities in the England and Wales to ensure that rental properties meet specific standards, thereby enhancing housing quality, reducing antisocial behavious and improving tenant safety. Unlike Mandatory or Additional HMO (House in Multiple Occupation) licensing, which target specific types of shared housing and converted buildings, Selective Licensing can apply to all privately rented properties within designated areas, regardless of their occupancy type. The criteria and implementation of these schemes vary by council, making it imperative for landlords to understand and comply with local regulations to avoid substantial penalties.Â
Failing to meet these requirements can result in hefty fines, rent repayment orders and banning orders.
What is Selective Property Licensing?
Selective Property Licensing requires landlords to obtain a licence for each rental property located within areas specified by the local council. These areas are typically designated based on issues such as low housing demand, significant anti-social behavior, or poor property conditions. The primary goal is to ensure that all rental properties, not just HMOs, adhere to acceptable standards of management and safety.​
Does Your Property Need a Selective Licence?
Selective Licensing is created by local councils in designate licensing areas. Common factors include:
- High Concentrations of Rental Properties: Areas with a substantial number of rented homes may be targeted to ensure consistent housing standards.​
- Concerns Over Property Standards or Anti-Social Behavior: Regions experiencing issues like neglected properties or tenant-related disturbances may be subject to licensing to address these problems.​
- Poor Housing Conditions: Localities with substandard housing may implement licensing to compel landlords to improve property conditions.​
Councils can apply the schemes over the whole borough, over selected wards, by street or designate based on a map that covers key areas.
To ascertain if your property falls within a Selective Licensing area, consult your local council's housing department or utilise Yuno's compliance platform, which offers up-to-date information on licensing and planninhg requirements across mainland UK.​
Selective Property Licensing Requirements
Landlords must meet specific legal obligations to obtain and maintain a Selective Licence, including:​
Minimum Property Standards
Ensuring the property is free from hazards and in some cases meets the Decent Homes Standard.
Tenant Safety Obligations
Installing and maintaining functional smoke alarms, carbon monoxide detectors, and ensuring gas and electrical systems are safe.​
Management Responsibilities
Addressing tenant complaints promptly, maintaining communal areas, and providing adequate waste disposal facilities.​
Compliance with these requirements is crucial, as failure to do so can lead to penalties and revocation of the Licence.​
Property Licensing How to Apply for a Selective Property Licence
The application process typically involves:
Check all your permissions, including on your lease, if you have one.
Prepare necessary documents, including property floor plans and valid safety certificates. Some certifications may not be familiar to you and can be quite complex; it is common for councils to request Fire Safety Risk Assessments (FSRA) and Automatic Fire Detection (AFD) Certification. Yuno can support with simple and complex compliance certifications.​
Fees vary by council and can range from a few hundred to thousands of pounds. Some councils may offer discounts for accredited landlords.​
Submit the application to your local council, along with the required fees.​
As per the Housing Act 2004, lenders, property managers, building managers, freeholders, and anyone with an interest in the property is to be notified legally by the applicant.
The duration for approval can differ, but councils aim to process applications within a specified timeframe, often several weeks but has seen to be years.
The council will inspect the property to ensure it meets all standards, at least once in the 5-year licensing term.​ Sometimes an inspection is required before issuing a licence.
Incomplete or incorrect applications, failure to meet property standards, not being Fit and Proper, or a history of non-compliance can lead to rejection.​ Not doing things correctly can add additional costs and risks to the whole process.
The council will issue a draft licence 21 days before the full licence, this is your time to review.
Upon receiving the draft licence, a thorough review should be conducted to ensure you understand what you are agreeing to comply with. It is advisable to seek expert advice to determine if the upgrades are reasonable, as you may save a significant amount of money. Yuno can help.
The council will issue the HMO licence.​
Ensure any upgrades are carried out by competent and accredited experts; the council will ask for proof through documentation and certification.
Ongoing compliance is what licensing is all about, staying compliant to all documentation and certification requirements is complex and time-consuming, but a must to avoid fines. Yuno Tech is designed to help you stay compliant.
Given the complexities involved, seeking expert support can facilitate a smoother application process.​
What Happens If You Don’t Have a Selective Licence?
Non-compliance with Selective Licensing can result in severe consequences, including:
Fines up to £30,000 per offence
Local authorities can impose substantial fines for operating without a Licence.​
Rent Repayment Orders
Landlords may be required to refund up to 12 months’ rent to tenants.​
Prosecution and Criminal Penaltie
Serious breaches can result in prosecution, leading to a criminal record and additional fines.​
Ensuring compliance not only avoids these penalties but also contributes to maintaining high housing standards and tenant satisfaction.​
How Yuno Can Help with Selective Licensing
Yuno specialises in assisting landlords through the intricacies of Selective Property Licensing by:​
- Instant checks and Live monitoring of your portfolio: Identifying which properties require a licence and planning couldn't be easier with Yuno’s API and platform to support you.
- Eligibility Assessment: Determining if your property requires a licence based on local regulations.​
- Licensing and Planning Application Management: Handling the preparation and submission of all necessary documentation to ensure accuracy and completeness.​
- Compliance Guidance: Providing advice on meeting all regulatory standards, including property improvements and management practices.​
- Compliance Upgrades: Yuno provide access to accredited experts for advice and upgrades where required.
- Expert Advice: Access to professionals with in-depth knowledge of regulations and best practices.​
- Compliance Tracking: Yuno tech tools are used to monitor and manage ongoing compliance obligations.​
With Yuno's expertise, landlords can navigate the Selective Licensing process confidently and efficiently.
Get Help with Your Selective Property Licence Today
Navigating Selective Property Licensing can be complex and time-consuming. Yuno offers expert guidance and comprehensive support to ensure your properties comply with all local regulations. Book a call today to speak with one of our specialists and take the first step toward seamless compliance.
