Landlords across England are facing a rapidly changing regulatory landscape. Councils are quietly expanding selective and additional licensing schemes, bringing more privately rented homes under strict controls, and often without much publicity. Failure to comply can lead to substantial fines, enforcement action, or even being forced to stop letting.

Local authorities have long had discretionary powers under the Housing Act 2004 to designate areas for selective licensing, targeting poor housing conditions, anti-social behaviour, low housing demand, or high crime. Landlords in these areas must apply for a licence and meet specific management and safety conditions.

A regulatory change in December 2024 removed the requirement for councils to obtain prior Secretary of State approval for selective licensing schemes of any size. While councils still must comply with all statutory requirements and carry out a public consultation of at least 10 weeks, this change has made it easier for them to introduce or expand schemes quickly - a shift that is now reshaping the sector.

Recent examples of councils acting under the relaxed rules include:

-     Manchester City Council expanded its selective licensing scheme, adding around 1,863 privately       rented homes that now require a licence

-     Westminster City Council extended its coverage to fifteen wards, with licences required from       November 2025

-     Reading Borough Council is rolling out a borough-wide additional licensing scheme for HMOs from       March 2026 and is consulting on further selective licensing in additional wards

-     Barking & Dagenham and Bexley have also introduced schemes under the relaxed framework

Eddie Hooker, CEO of HFIS says: “Crucially, letting a property without the correct licence can invalidate possession notices and expose landlords to significant fines or rent repayment orders, even where non-compliance is accidental.”Even where councils have not yet expanded schemes, ongoing consultations and legal preparations indicate that more properties will soon fall under licensing. Councils must publish consultation results and involve mayors where applicable, but many landlords remain unaware until enforcement begins.

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What this means for landlords

-     Compliance is no longer one-time: licence conditions, boundaries, and fees can change

-     Penalties are substantial: councils have issued fines in the thousands, and landlords may face rent       repayment orders or reputational damage

-     Enforcement powers are stronger under the Renters’ Rights Act 2025, allowing councils to act quickly

The licensing landscape is now more dynamic than ever. Properties once exempt may now require a licence, and failure to stay informed can be costly. Landlords must actively monitor local developments, engage in consultations, and ensure ongoing compliance to avoid fines or enforcement.