Leeds Landlords Warned Over New Selective Licensing Rules
Landlords in areas of Leeds are being warned of new regulations that require them to obtain a Selective Licence for their rental properties, or risk prosecution and fines.
Selective Licensing hit the headlines in 2025 when Chancellor Rachel Reeves failed to obtain a rental license for a property she lets in south London. Now several areas of Leeds have brought in Selective Licensing requirements – including in the Chancellors’ own constituency of Armley.
Selective licensing, which requires a landlord to obtain a license before renting out their property or once a scheme comes into force, was designed to improve housing conditions, ensure better management standards in private rented homes and give councils a mechanism to address persistent issues such as rogue landlords, high turnover, or anti-social behaviour in specific neighbourhoods.
The requirements were introduced by Leeds City Council in the wards of Armley, Beeston and Holbeck, Burmantofts and Richmond Hill, Farnley and Wortley, Gipton and Harehills and Hunslet and Riverside from 9 February 2026.
Whilst professional investors should be aware of the requirement, Emma Reilly, Solicitor at Leeds-based law firm Schofield Sweeney, is warning that many ‘accidental’ landlords – people renting out their homes due to a change in circumstance, relocation or inheritance – may not be aware of the requirement and could face the same problems as the Chancellor.
Ms Reilly said: “The introduction of Selective Licensing means that landlords must now take a more active role in monitoring local requirements. For semi-professional and accidental landlords in particular, the risks associated with overlooking a licence requirement can be substantial. The financial penalties are significant: an unlimited fine on prosecution or a civil penalty of up to £30,000 per offence. In addition, tenants – or the local authority – can apply for a Rent Repayment Order, requiring landlords to repay up to 12 months of rent received while the property was unlicensed.
“Many landlords simply do not realise they need a licence and those using letting agents assume that they will deal with all compliance on their behalf. Unfortunately, this often isn’t the case, and legal responsibility for selective licensing sits solely with the landlord.”
“There is no doubt that selective licensing is a valuable, and welcome, tool for improving housing standards but landlords must ensure that they are well informed of their duties. If you are renting out a property, even temporarily, check whether your area is subject to selective licensing and make sure you apply in good time. A simple oversight can become a very expensive mistake.”
Selective Licensing doesn’t apply everywhere; each local authority has different rules in place and requirements such as standards, management expectations and fees vary widely. According to the National Residential Landlords Association (NRLA) 47 local authorities currently operate selective licensing schemes in England.
The fees for obtaining a licence vary, although the national average is around £700 per property. In Leeds, the fees are paid in two parts, £675 on application and £475 if the application is successful.