Written by
Sarah Nguyen
Published on
Sep 12, 2025
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For property managers in the UK, one of the most overlooked compliance issues is the growing network of Selective Licensing schemes. These schemes mean that any privately rented property in a designated area may need a licence — even if it’s not an HMO, short-let, or high-occupancy home.
Many landlords and agents assume their properties are compliant when they’re not. This guide breaks down what to look for, how to check your areas, and how to embed this review into your daily property management workflow.
1. What is a Selective Licensing scheme?
A Selective Licensing scheme covers all or most privately rented properties in a specific geographic area. It’s introduced under Part 3 of the Housing Act 2004 and allows local authorities to designate zones with poor housing conditions, antisocial behaviour, or a high concentration of private rentals.
According to GOV.UK guidance, once a scheme is in force, every property within that zone (unless exempt) must have a licence.
Local authorities consult publicly before introducing or renewing schemes, which usually last around five years.
2. Why property managers must monitor these zones
A property can become licensable overnight if it falls into a designated area.
Letting an unlicensed property is a criminal offence that can result in hefty fines and rent repayment orders.
Zones can expand or change — new schemes appear regularly across UK cities and towns.
Licence conditions often require updated documentation, safety checks, and occupancy records — all directly tied to your operational processes.
To understand how AI can help you automate these compliance workflows, see our post on How AI Property Maintenance Software Saves Landlords Time and Money.
3. How to check if one of your properties lies in a Selective Licensing zone
Step-by-step checklist:
Identify the local authority for each property using the postcode.
Visit the council’s website and search for “Selective Licensing map” or “licensing area” — many publish interactive maps or postcode search tools (for example, the London Property Licensing map).
Review published street lists or PDF maps (like Stockton Council’s designation maps).
Confirm the start and expiry dates of the scheme and whether any exemptions apply.
Check if a licence register is available to verify the property’s status.
Record each property’s zone status, licence number, and expiry in your internal tracker.
4. Common Selective Licensing areas across the UK
Selective Licensing isn’t limited to major cities — smaller towns and boroughs are introducing them too. Below are some notable examples:
Birmingham — introduced June 2023 across 25 wards out of 69. See Birmingham City Council.
Leicester — launched October 2022 in Braunstone Park, Westcotes, Stoneygate and Saffron wards (Leicester City Council).
Peterborough — began March 2024 covering Bretton, Central, East, North, Park, and Paston & Walton wards (Peterborough Council).
Hexthorpe (Doncaster) — introduced March 2022 to tackle high levels of private rental housing (Doncaster Council).
You can find a growing list of councils running selective schemes via Property Investments UK.
5. What to check beyond “is it in the zone?”
Once you confirm a property sits within a selective licensing area, check:
Licence dates: start, expiry, and renewal schedule.
Conditions: safety certificates, management standards, or occupancy reporting.
Exemptions: such as HMOs already licensed under another scheme or social housing.
Usage changes: e.g. multi-household occupancy or short-term sub-lets that could breach conditions.
Responsible party: clarify whether the licence holder is the landlord or managing agent.
Documentation: maintain an accessible digital vault of certificates and compliance evidence.
6. Integrating selective licensing into your workflow
Portfolio audit: add “Licence Zone Check” and “Licence Required” fields for every property.
Onboarding: verify postcode status when a new property or tenant is added.
Renewal reminders: schedule notifications three to six months before licence expiry.
Occupancy monitoring: use communication signals (e.g. “flatmate moved in”) from your triage system to trigger a compliance recheck.
Reporting dashboards: visualise how many units sit in licensed areas, which need renewal, and where conditions apply.
If you’re using an AI platform like Lanten, your triage system can automatically flag risk terms from WhatsApp, Email, or Call transcripts — alerting you when changes in tenancy or occupancy might affect licensing status.
7. Action steps for property managers today
Run postcode checks for 10 random units you manage.
Add licence zone status and dates to your property database.
Create automated alerts for renewals or scheme changes.
Review tenant communications regularly for occupancy or usage changes.
Educate your landlords about selective licensing zones — most still assume “single lets” don’t need a licence.
Document everything — from applications to certificates — in a single digital folder or system.
Conclusion
Selective licensing isn’t a niche compliance issue anymore — it’s fast becoming standard across UK councils. Any property within a designated area can require a licence, regardless of size or type.
By incorporating licence-zone checks into your management process, tracking renewals, and using AI tools like Lanten to spot red flags early, property managers can stay compliant and safeguard both landlords and tenants.
