A Labour MP, Olivia Blake, has called on the government to introduce legislation that would allow local councils to implement licensing schemes covering whole cities or areas (known as ‘general licensing’ power) instead of being limited to the current Selective Licensing framework, which is tied to specific, smaller areas facing issues like low housing demand or anti-social behaviour.

Government Stance: The government has confirmed it does not intend to make any change to the legislative requirements and will continue to allow selective licensing schemes.

New Rule: Easier Launch for Selective Licensing

Despite the rejection of a city-wide power, a significant administrative change has made it easier for councils to launch selective schemes of any size:

• General Approval Update: Effective 23 December 2024, a new General Approval for selective licensing came into force.
• Approval No Longer Needed: This change enables local authorities to introduce selective licensing schemes of any size without seeking approval from the Secretary of State.
• Previous Barrier: Previously, approval was required for schemes covering more than 20% of a local authority’s private rented sector stock or geographical area.
• Consultation Requirement: Local authorities must still comply with the legislative requirements under Part 3 of the Housing Act 2004 and consult for at least 10 weeks on any new scheme.

Industry Reaction: Revenue-Boosting Schemes

Licensing expert Phil Turtle has warned that this new power, by removing central government oversight, primarily serves to boost local authority income at the expense of the housing provider and, ultimately, the tenant.

• Cost Concern: He argues that councils use the power to increase revenue through licence fees and fines.
• Price Comparison: Selective licensing schemes in England typically cost landlords around £1,000 (£200/year), which he contrasts with a Jersey scheme costing only £30/year.
• Control Shift: Mr. Turtle states this move is the government “giving away any vestiges of control” and a “go-ahead for out-of-control local council money-raising schemes.”