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Selective licensing and the PRS database: why landlords will pay for both

8 min readBy Padlord

Does the new national landlord database replace selective licensing? No. If your property is in a council's selective licensing area, you will need the council licence and a PRS database entry, and you will pay for both: typically a few hundred pounds a year for the licence, plus £65 per property per year for the database once your region opens. Ministers have said repeatedly that the two do different jobs.

Meanwhile the number of homes caught by licensing is rising, because since December 2024 councils have not needed government sign-off to license most or all of their area. Here is how the two regimes fit together, where the big schemes are, and what the combined bill looks like.

Does the PRS database replace selective licensing?

No. The government's line has been consistent since 2025:

  • "Selective licensing schemes introduced by local authorities, the Private Rented Sector (PRS) Database, and the PRS Ombudsman are separate regimes and fees will be structured and set according to the relevant legislation." Housing minister Matthew Pennycook, written answer, 14 July 2025.
  • "Selective licensing schemes and the Private Rented Sector Database have entirely different purposes." Pennycook again, written answer, 9 March 2026, adding that the department will "refine the way the two systems work together".
  • The explanatory memorandum to the draft database regulations says the database "is different to" the selective licensing regime and was designed for national coverage.

The logic is that the database is a light-touch national register, while selective licensing is a local enforcement tool with property conditions and inspections behind it. The practical result is two applications, two fees and two sets of renewal dates for the same house. Landlord groups have objected: the NRLA said on 9 September that "compliant landlords should not have to pay twice to provide the same information", as reported by LandlordZone. As of 21 September 2026 there is no fee offset between the two.

What happened to the 20% rule?

It was removed on 23 December 2024, and that is why licensing is spreading now. Under the old 2015 General Approval, a council needed the Secretary of State's confirmation for any selective scheme covering more than 20% of its area or of its private rented stock. The 2024 General Approval lets councils make a scheme of any size without central approval.

What did not change: a council must still meet the statutory tests in Part 3 of the Housing Act 2004 (such as low demand, poor property conditions or antisocial behaviour), consult for at least 10 weeks, and a designation still lasts a maximum of five years. The new approval also asks councils to involve the local mayor, send data to the housing department and publish reviews of their schemes.

The effect was immediate. Ministers confirmed that large-scheme applications from Burnley, Barking and Dagenham, and Lambeth, submitted in late 2024, simply stopped needing approval (written answer, 7 November 2025). And there is no central public list: councils are asked, but not legally required, to send the department data when a scheme starts.

Where are the big selective licensing schemes?

Two London examples show the scale that is now normal.

CouncilCoverageStartFee
Lambeth23 of 25 wards (all except Vauxhall, and Waterloo and South Bank)Phase 1 Sept 2024, phase 2 1 Sept 2025£1,025 per property from 1 April 2026, with discounts
Croydon14 of 28 wards, about 72.5% of private rented homes, plus borough-wide additional HMO licensing1 September 2026, for five yearsSet by the council; check its fees page

Croydon is the clearest illustration of the rule change: it sought government approval for a large scheme in 2020 and did not get it. Under the 2024 General Approval it did not need to ask.

Because designations are drawn ward by ward and street by street, the only safe check is address by address, in writing, with your council. Our guide to whether you need a landlord licence walks through the decision.

When do I have to register on the PRS database?

When your region's window opens, and you then have three months. The government announced the "Register your rental property" service on 9 September 2026, and the draft Private Rented Sector Database Regulations 2026 set the regional dates, subject to approval by Parliament.

RegionOpensRegister by
West Midlands15 Dec 202614 Mar 2027
East of England15 Jan 202714 Apr 2027
East Midlands15 Feb 202714 May 2027
South East15 Mar 202714 Jun 2027
Yorkshire and the Humber15 Apr 202714 Jul 2027
North West15 May 202714 Aug 2027
North East15 Jun 202714 Sep 2027
London15 Jul 202714 Oct 2027
South West15 Aug 202714 Nov 2027

Source: GOV.UK Housing Hub. The fee is £65 per property per year, set by the database operator rather than written into the regulations. Each property entry must record whether it needs an HMO, selective or additional licence, alongside gas safety, electrical and EPC details. Our guide to preparing for database registration covers the rest of the field list.

The sanctions are already in the Act. Marketing or letting without an active entry can bring a council penalty of up to £7,000, and offences such as giving false information up to £40,000 (s.91). More pointedly, a court cannot make a possession order while you are letting without an active entry, except on the antisocial behaviour grounds 7A and 14 (s.90).

How much will I pay for both?

Take a landlord with three one-bed flats in Brixton, each let at £1,800 a month, all inside Lambeth's scheme.

  • Selective licences. 3 × £1,025 = £3,075. A licence cannot outlast the designation, and Lambeth's phase 2 runs at most five years from September 2025, so a licence bought now covers about four years. That is roughly £769 a year.
  • PRS database. 3 × £65 = £195 a year, from London's window in July 2027.
  • Combined: about £964 a year, or £321 per flat. On £64,800 of annual rent that is 1.5% of gross income, before any accreditation discount on the licence.

Now the downside. An unlicensed property in a selective area has a nationally set civil penalty starting point of £12,000, and if that penalty stands, a tribunal must order the maximum rent repayment order of up to two years' rent: up to £43,200 on one of those flats. Our landlord fines table sets out every starting point. The two fees are an operating cost; skipping either is a gamble with a five-figure downside.

Will the database make licensing cheaper?

Not yet, and nothing has been promised. Selective licence fees must only cover the cost of running the scheme, and councils may not profit from them (written answer, 14 July 2025). Ministers say they are refining how the two systems work together, and councils will be able to use database data for enforcement, but as of 21 September 2026 there is no discount or offset between the two fees.

The landlord ombudsman will eventually be a third, separate charge. Our landlord ombudsman guide explains why that fee is still unknown.

Does this apply in Wales and Scotland?

No. Both the database and the selective licensing rules here are for England. Wales requires registration and licensing through Rent Smart Wales, Scotland runs a council landlord register, and Northern Ireland has its own landlord registration scheme.

What to do now

  • Confirm licensing status for every address in writing, and diarise the scheme's end date, since renewals and new designations change the answer.
  • Diarise your database window from the table above. Everything must be registered by 14 November 2027.
  • Collect the paperwork once, use it twice. The licence application and the database entry want the same gas, electrical and EPC evidence. The free compliance deadline checker tracks when each one expires.

This is general information as at 21 September 2026, not legal, tax or financial advice. Licensing schemes and fees are set locally and the database regulations are still subject to Parliament, so check with your council and GOV.UK before relying on any date.

selective licensingprs databaselandlord licensingrenters rights actcompliance

This article is general information for UK landlords, not personal tax, legal or financial advice. The rules change and your circumstances differ, so check the current position on GOV.UK or with a qualified adviser before you act.

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