THERE has recently been been publicity about the need to have a property licensed by the local council before it can be let out to a tenant.

A landlord may be required to hold a House in Multiple Occupation Licence (HMO Licence) or a Selective Licence. The distinction between an HMO Licence and a Selective Licence lies in what type of property and letting arrangement they regulate under the Housing Act 2004.

Here’s the breakdown:

1. The purpose of an HMO licence is to regulate shared houses or flats occupied by multiple unrelated tenants, ensuring proper standards of safety, management, and amenity provision. A fee is payable on the granting of such a licence. It applies when a property is occupied by three or more tenants forming two or more households who share facilities (e.g. kitchen, bathroom, toilet).There are two main types: (a) Mandatory HMO Licence - Required nationwide for large HMOs: that is properties with five or more tenants, forming two or more households and sharing kitchen, bathroom, or toilet. (b) Additional HMO Licence- Local councils can extend licensing to smaller HMOs (e.g. three or four tenants) if they choose. This is a local scheme, not automatic nationwide.

2. The purpose of a Selective Licence is to regulate all privately rented homes (not just HMOs) in designated areas—usually where the council wishes to tackle low housing demand, poor property conditions, or anti-social behaviour. It applies when a local authority designates an area under Part 3 of the Housing Act 2004. Then every privately rented property in that area (including single-family lets) must have a selective licence, unless exempt. The main focus is (a) ensuring landlords are “fit and proper persons”. (b) setting basic property management and maintenance standards. (c) Helping the council regulate the private rental sector more broadly. Once again a fee is payable upon the granting of a licence.

It is an offence to let out such properties without an appropriate licence.

A reminder that the new Renters Rights Act 2025 has just come into force. The Act abolishes the right of landlords to use “no-fault” evictions under Housing Act 1988 section 21 and replaces existing assured shorthold tenancies with open-ended periodic assured tenancies. Tenants will be able to end the tenancy with two months’ notice, and landlords must rely on specific grounds for possession. Bidding wars and opaque rent setting will be banned. Landlords will be required to publish an asking rent and cannot accept unauthorised higher offers. For pets, tenants will have the right to request permission and landlords must not unreasonably withhold consent. Discrimination on grounds of receiving benefits, having children, or being on low income is specifically prohibited.

Enforcement is strengthened: local authorities gain investigative and entry powers, and penalties for non-compliance (including rent repayment orders) are increased. The Decent Homes Standard and the so-called “Awaab’s Law” hazard deadlines will apply more fully to the private rented sector.

The commencement of the new regime will be phased, with key changes expected to apply from the “commencement date” specified by regulation.