In addition to mandatory and additional HMO licensing the Act gives local authorities the power to designate an area(s) as subject to selective licensing, where in all privately rented houses, whether or not in multiple accommodation or rented to single households, would be required to be licensed by the local authority.
The power is available to use:
- Where an area is or is likely to become an area of low housing demand and making a designation will, when forming part of an area regeneration strategy, contribute to the improvement of the social or economic conditions in the area.
- Where an area is experiencing a significant and persistent problem caused by anti-social behaviour which some or all private landlords letting in the area are not combating, and making a designation will, when forming part of an anti social behaviour reduction strategy, lead to a reduction in, or the elimination of the problem.
Privately rented properties within the selective areas will require to be licensed. The licence holders must be fit and proper persons with the competency and means to properly manage properties.
Conditions may be attached to the licence that are considered by the local authority to be appropriate for regulating the management, use or occupation of the property.
Conditions may include:
- Imposing restrictions or prohibitions on the use or occupation of particular parts of the house by people occupying it or
- Requiring the taking of reasonable and practical steps to prevent or reduce anti social behaviour by persons occupying or visiting the house.
- Requiring the taking up of references from people seeking privately rented accommodation in the area.
In summary, selective licensing can regulate which landlords operate in an area and how they mange their properties.
It will an offence to let property in an area of selective licensing without a licence or to do so in breach of licence conditions.
Local authorities can charge a licence fee to recover some of the costs of operating the scheme.