Information for landlords
Part 3 of the Housing Act 2004 gives local authorities the power to introduce selective licensing for privately rented properties within a designated area. Selective licences are used to help council raise property standards within problematic and low demand areas.
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Selective licensing conditions cover a range of requirements including (but not limited to) gas / electrical certificates, fire safety and general repairs, property management, tenancy agreements, tackling anti-social behaviour, and notifying the council of changes. Fire detection and alarm systems are required to be interlinked and mains connected.
It is the responsibility of the proposed licence holder who has control of the property (usually the owner, manager or letting agent who receives the rent for the property) to apply to the council for a selective licence.
A separate application must be made for each property a landlord/managing agent owns / manages.
The council will only issue a licence once it is satisfied the criteria listed below have been met. In the event of any of these issues not being met the council may decide to impose extra conditions on the licence or refuse the licence completely.
Criteria:
- The proposed licence holder and proposed manager/agent (if applicable) is a 'fit and proper person'
- The proposed licence holder is the most appropriate person to hold the licence
- The proposed management arrangements are satisfactory
- Persons involved in the management of the property are competent.
We now offer one-to-one drop-in sessions to assist you with submitting your application for selective licensing or an HMO licence.
If you need any assistance, please email [email protected] to schedule your session.
Please note, drop-in sessions are only available on Tuesdays and Thursdays, between 10am and 2.45pm.
Note: Mandatory HMO licensing is a separate scheme to selective licensing. If your property is occupied by five or more people living as two or more households you will be required to apply for a mandatory HMO licence whether this be in the designated areas or any other part of the city.
The fee is to be paid in two parts. The first part is to be paid when the initial application is made, and the second part will be due once the application has been processed and the council has issued the draft licence:
- Part A fee - will cover the application processing costs including validation of the application, background checks, a fit and proper person assessment, a full inspection of the property together with advice to achieve compliance. This fee will also cover drafting of the licence and verification of any compliance issues identified.
- Part B fees - will cover issuing the final licence, and consideration of any representations before issuing the full licence. This fee will also cover maintaining the public register, responding to complaints, enquires associated with the scheme and compliance checks to the property.
Licence type | Part A (application) | Part B (enforcement) | Total fee payable |
No discount | £872 | £218 | £1,090 |
10% discount | £784.80 | £196.20 | £981 |
20% discount | £697.60 | £174.40 | £872 |
30% discount | £610.40 | £152.60 | £763 |
Late penalty | £1,032 | £258 | £1,290 |
Please note that all discounts will end on 9 April 2024, when the selective licence application fee will increase to £1,290. Applicants will no longer be able to claim any discounts from this date.
If you apply within six months of acquiring the property, please email Leicester City Council Selective Licensing Team on [email protected] to discuss your eligibility for discounts.
The cost of the licence will be subject to discounts and penalties. A maximum of three discounts can be applied to each application. The discounts available are:- A 10% discount for applications after buying a property and receiving the Property Transfer Deed (also known as TR1) and submitted up to six months following the date of transfer.
- The licence holder is eligible for a 10% discount if they are a member of an accredited landlord association. Managing and letting agents may only claim this discount if they are the licence holder. Accreditation status must be maintained throughout the duration of the scheme.
- Registered charitable organisations will receive a 10% discount, providing charitable status is maintained for duration of the scheme. To receive the discount you must be the licence holder for each property applied for
- Properties with an EPC banding A, B and C be entitled to a 10% discount to acknowledge the works undertaken on the building in excess of the legal minimum standard
- Multiple applications by landlords or managing agents will receive a 10% discount. To receive the discount you must be the licence holder for each property applied for.
- Properties in the Gold leasing scheme (those leased to Leicester City Council whilst still maintaining management) will be entitled to a 10% discount, providing membership is maintained for the duration of the scheme.
All new landlords who take legal ownership of a property after the scheme has started will be able to apply with all available discounts, providing the application is made within six months of legal ownership of the property.
It is a legal requirement that all landlords are licenced from 10 October 2022 and failure to obtain a licence would be a defence for a tenant against a section 21 being issued and may lead to a rent repayment order against a landlord for repayment of rent backdated to the 10 October 2022 being issued.
Failure to maintain membership of a discount will mean the council will recover the discount and may revoke the licence.
Under The Housing Act 2004 Section 84, it is a criminal offence to operate without a licence. You must apply for the property to be licensed as soon as possible.
You will only be entitled to a refund if:
- Your property doesn't need a licence at the time of application (for example, it falls under one of the exemptions)
- You make a duplicate application.
You will not be entitled to a refund if:
- Your property needs to be licensed at the time of application
- You subsequently sell the property at any point during the application process
- The council refuses your application and does not grant a licence
- You withdraw your application at any point during the application process
- The council revoke (take away) your licence
- The council vary your licence and reduce the amount of time it remains operationally valid
- You are refused planning permission
Please ensure you have all necessary supporting documents to hand when you start the application, as you will not be able to complete the application without them. However, you will be able to save your application if you need to return to it at a later date. Details of supporting documents you will need:
You will need to supply the following documentation as part of this application process:
- Copy of current gas safety certificate (if applicable)
- Proof of a buy to let mortgage or statement of ownership (sample statement of single ownership / sample statement of multiple ownership)
- Fire safety risk assessment (if applicable you must include fire alarm test certificate and emergency lighting test certificate. * Also see LACORS fire safety guidance for reference)
- Copy of any tenancy agreements (for current tenants)
- Energy performance certificate (EPC)
- Information about any person(s) with interest in the property
- Floor plan (see Fire safety risk assessment guidance link above)
- Satisfactory EICR.
* A Fire Safety Risk Assessment is a legal requirement and should be undertaken by a competent person. You may be able to undertake the fire risk assessment yourself using the proforma - if you have sufficient knowledge of the property, training and competency. Should you need assistance you should use a member of the Institute of Fire Engineers www.ife.org.uk or a member of the Fire Safety Federation.
Assistance and access to computers can be made through council libraries (you must be a library member) and the Customer Service Centre on Granby Street. Alternatively, email the selective licensing team.
- Application is submitted to council with correct application fee and all essential paperwork and elements completed (applications must be made online)
- Acknowledgement is sent to applicant confirming application has been received
- Assessment of documentation and management arrangements carried out
- Property inspection arranged and carried out to ensure property is free of Category 1 hazards
- Fit and proper person assessment carried out
- Decision made on whether proposed licence holder and manager are fit and proper
- Decision made on whether management arrangements are suitable
- If everything is satisfactory a draft licence will be sent to the proposed licence holder and all interested parties (* see below)
- Information will be provided with the draft in relation to right to make representation (14 day period)
- Second part of fee to be paid within the representation phase. If this is not paid the council can review the draft licence and may refuse the licence
- If representation is received within 14 days this will be considered prior to final licence being issued
- After 14 days (pending receipt of second part of fee) the final licence will be issued. Information will be provided with the licence in relation to right of appeal to the first-tier tribunal – property chamber (Residential Property) if the proposed licence holder is not satisfied with the final licence that has been issued (Period of 28 days)
Once a valid application has been made the legal duty has been met and it is then down to the council to process the licence. In order to be considered a valid application it must have the correct fee paid, include all essential documentation and have all relevant parts of the application satisfactorily completed.
There will be a team processing the licenses so timescales for assessing applications and issuing licences will vary. You can continue to rent your property as normal whilst a licence application is being processed.
It is a criminal offence for a person who requires a licence to not apply for the licence. If found guilty of this offence by the courts the penalty fine is unlimited. If the person is issued a civil penalty as an alternative to prosecution they could face a fine of up to £30,000 per offence under the Housing Act 2004.
- Not being a ‘fit and proper person’
- Unsatisfactory management arrangements and persons involved in the management are not competent
- The licence holder is not the most suitable person
- Category 1 Hazards within the property
- Incomplete application.
Please note: Library staff are not able to scan documents for you.
Alternatively, post your documents to:
Selective Licensing Team, Leicester City Council, York House, 5th Floor, 91 Granby Street, Leicester LE1 6FB.
See Selective Licensing of Houses (Specified Exemptions) (England) Order 2006 for further information.
Prohibition of occupation by law
1. A tenancy or licence of a house or a dwelling within a house where the house or the dwelling is subject to a prohibition order made under section 20 of the Act the operation of which has not been suspended under section 23.Certain tenancies, which cannot be assured tenancies
2. A tenancy which cannot be an assured tenancy by virtue of section 1 (2) of the Housing Act 1988 comprised in Part of Schedule 1 of the Act and which is:- a business tenancy under Part II of the Landlord and Tenant Act 1954
- a tenancy under which the dwelling-house consists of or comprises premises, which, by virtue of a premises licence under the Licensing Act 2003, may be used for the supply of alcohol (within the meaning of Section 14 of that Act) for consumption on the premises
- a tenancy under which agricultural land, exceeding two acres, is let together with the house
- a tenancy under which the house is comprised in an agricultural holding or the holding is comprised under a farm business tenancy if it is occupied (whether as tenant or as a servant or agent of the tenant), in the case of an agricultural holding, by the person responsible for the control of the farming of the holding, and in the case of a farm business tenancy, by the person responsible for the control of the management of the holding.
Tenancies and licences granted etc by public bodies
4. A tenancy or licence of a house or dwelling within a house that is managed or controlled by:- a local housing authority
- a police authority established under section 3 of the Police Act 1996 or the Metropolitan Police Authority established under section 5B of that Act
- a fire and rescue authority under the Fire and Rescue Services Act 2004
- a health service body within the meaning of section 4 of the National Health Service and Community Care Act 1990.
Tenancies, licences etc regulated by other enactments
5. A tenancy, licence or occupation of a house, which is regulated under the following enactments:- sections 87 to 87D of the Children Act 1989
- section 43 (4) of the Prison Act 1952
- section 34 of the Nationality, Immigration and Asylum Act 2002
- The Secure Training Centre Rules 1998
- The Prison Rules 1998
- The Young Offender Institute Rules 2000
- The Detention Centre Rules 2001
- The Criminal Justice and Court Service Act 200 (Approved Premises) Regulations 2001
- The Care Homes Regulations 2001
- The Children’s Homes Regulations 2001
- The Residential Family Centres Regulations 2002.
Certain student lettings etc
6. A tenancy or licence of a house or a dwelling within a house:- which is managed or controlled by a specified educational establishment or is of a specified description of such establishments, and
- the occupiers of the house or dwelling are undertaking a full time course of further or higher education at the specified establishment, and
- the house or dwelling is being managed in conformity with an Approved Code of Practice for the management of excepted accommodation under section 233 of the Act
Long leaseholders
7. A tenancy of a house or a dwelling within a house provided that:- the full term of the tenancy is for more than 21 years, and
- the tenancy does not contain a provision enabling the landlord (or his successor his in title) to determine it other than by forfeiture, earlier than at the end of the term, and
- the house or dwelling is occupied by a person to whom the tenancy was granted or his successor in title or by any members of either of those person’s family
Certain family arrangements
8. A tenancy or licence of a house or a dwelling within a house where:- the person who has granted the tenancy or licence to occupy is a member of the family of the person who has been granted the tenancy or licence, and
- the person who has granted the tenancy or licence to occupy is the freeholder or long leaseholder of the house or dwelling, and
- the person occupies the house or dwelling as his only or main residence (and if there are two or more persons at least one of them so occupies).
Holiday lets
9. A tenancy or licence of a house or a dwelling within a house that has been granted to the person for the purpose of a holiday.Certain lettings etc by Resident Landlord etc
10. A tenancy or licence of a house or a dwelling within a house under the terms of which the person granted the tenancy or licence shares the use of any amenity with the person granting that tenancy or licence or members of that person’s family. An 'amenity' includes a toilet, personal washing facilities, a kitchen or a living room but excludes any area used for storage, a staircase, corridor or other means of access.Interpretation
11. In this annex:- a 'person' includes 'persons', where the context is appropriate
- a 'tenancy' or 'licence' includes 'a joint tenancy' or 'joint licence', where the context is appropriate
- 'long leaseholder' in paragraph 7 (ii) has the meaning conferred in paragraphs 6 (i) and (ii) and in those paragraphs the reference to 'tenancy' means a 'long lease'
- a person is a member of the family of another person if:
- he or she lives with that person as a couple
- one of them is the relative of the other
- one of them is, or is a relative of, one member of a couple and the other is a relative the other member of the couple
- 'couple' means two persons who are married to each other or live together as husband and wife or in an equivalent arrangement in the case of persons of the same sex
- 'relative' means a parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, niece or cousin
- a relationship of the half-blood is to be treated as a relationship of the whole blood and a stepchild of a person is to be treated as his child.