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What happens when a licensing scheme expires or is renewed? The compliance grey area

Licensing schemes in the private rented sector (PRS) typically run for up to five years. When a scheme reaches the end of its term, the next steps are not always clear, and misunderstandings can arise. In some cases, assumptions about expiry or renewal can result in landlords operating outside the scope of a valid designation.

When a scheme expires, councils have three options: allow it to lapse, renew it on the same basis, or redesignate it with new boundaries or conditions. Even where a scheme appears unchanged, licence conditions or fees are often revised. Where renewal notices or consultations are missed, landlords may continue letting without a valid licence, which can lead to enforcement action under the Housing Act 2004.

Licensing requirements apply only while a formal designation is in force. Before a scheme can be renewed or redesignated, councils must carry out a public consultation and formally confirm the designation. While breaks between schemes are uncommon, continuity should not be assumed. The legal status of a scheme depends on whether it has been properly renewed and published, in line with Part 3 of the Housing Act 2004 and associated government guidance.

Renewal periods also allow councils to update licence conditions. These may include revised fire safety obligations, changes to management requirements, or additional reporting duties. Where conditions change, reliance on previous licence terms may result in non-compliance, a risk referenced in NRLA licensing guidance.

Administrative and financial requirements may also change on renewal. Fees paid under an earlier licence do not transfer to a new scheme, and fresh applications are required. Councils may also update application processes, including documentation requirements or evidence of competency, as set out in government selective licensing guidance.

For landlords with properties in multiple local authority areas, renewals can present added complexity. Schemes are renewed independently, creating differing timelines and requirements across boroughs. A lapse in one area can result in enforcement action, even where compliance is maintained elsewhere.

A spokesperson from the National Residential Landlords Association said:

“Local authorities have a duty to engage with and consult landlords and the local community on proposals for new licensing schemes. It is important that affected landlords raise any concerns or objections with their council.”

Overall, the expiry and renewal of licensing schemes reflect the fluid nature of PRS regulation at local level. As designations change, so too can licensing status, conditions and fee structures, with direct implications for landlords operating within those areas.

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Selective licensing

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