Selective Licensing in Liverpool
Written by Scott Jones, founder of PropertyKiln · Last updated
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Liverpool's selective licensing scheme runs from 1 April 2022 to 31 March 2027, covers most of the city's wards, and hits around 80% of privately rented homes, with a planned consultation to go truly city-wide from 2027.
Scheme status, area, dates
- Current scheme: Landlord Licensing (selective licensing) 2022-27.
- Status: Active, mid-cycle, with explicit political intent to renew and expand to city-wide coverage from April 2027.
Dates:
- Start: 1 April 2022.
- End: 31 March 2027.
Area covered (wards):
Council and local summaries vary slightly, but the scheme covers designated wards across the city, around 16-32 wards, including:
Anfield, Central, County, Everton, Fazakerley, Greenbank, Kensington and Fairfield, Kirkdale, Old Swan, Picton, Princes Park, Riverside, St Michael's, Tuebrook and Stoneycroft, Warbreck, Wavertree, plus other inner-city wards.
In total, the scheme covers about 45,000 of 55,000 PRS homes, roughly 80% of the sector.
The council's hardship-hub summary notes a selective licensing scheme "covering 32 wards between 2022-2027", underlining how wide the coverage is.
Fees (2026)
From Liverpool's "Fees, discounts and exemptions" page (updated 31 March 2026) and specialist landlord guides:
- Full property licence fee: GBP 704.
- New rental property licence fee: GBP 486 (lower for first-time PRS properties).
- New rental property licence with EPC C or above: GBP 422.
- New rental property licence with landlord membership discount (accredited): GBP 449.
Earlier guidance and landlord FAQs referenced GBP 680 as the full fee under initial 2022 rates; the updated schedule now shows GBP 704, with the discounted bands as above.
Fees are split into two instalments (initial and final payment) and are per property, normally for a 5-year licence.
Licence conditions
Selective licences carry conditions on:
Property standards and safety:
- Landlords must ensure properties are free from serious hazards (HHSRS).
- Smoke alarms, CO detectors as required.
- Valid gas safety certificate, EICR and EPC.
Management:
- Fit and proper person requirement for licence holder and manager.
- Contact details, arrangements for repairs, 24-hour emergency contact.
- Keeping records of safety checks and inspections.
Tenancy management and ASB:
- Written tenancy agreements and deposit protection.
- Taking reasonable steps to tackle antisocial behaviour, noise, and waste issues.
HMO licences (mandatory) add further conditions on room sizes, amenities and fire precautions, but selective licensing alone already imposes a high baseline.
Penalties, enforcement and staffing
Liverpool is scaling up enforcement in a big way.
As of early 2026, the council is adding 34 staff to its landlord licensing team, taking the total to around 120 officers focused on the 46,000 homes in the scheme.
The council states that all privately rented properties in designated areas must be licensed and that the scheme is used to:
- Tackle fire and electrical safety hazards.
- Address excess cold, damp and mould.
- Prevent and tackle antisocial behaviour.
Enforcement powers:
- Civil penalties up to GBP 30,000 for operating unlicensed or breaching conditions.
- Rent Repayment Orders for up to 12 months' rent, echoed and strengthened by new Renters' Rights Act guidance.
- Ability to refuse licences, impose conditions or use management orders in extreme cases.
The council is explicit that extra staffing is funded by licence fees and Renters' Rights Act support, and will target cash-only rents, suspected criminal activity, and worst housing conditions.
Exemptions
From Liverpool's guidance:
Selective licensing does not apply to:
- Properties already licensed as mandatory HMOs.
- Certain exempt tenancies (social landlords, some student halls).
- Long leases and some business tenancies.
The default assumption for investors is: if it is a privately rented single-let or small HMO in a designated ward and does not already have an HMO licence, it needs a selective licence.
Application process
Landlords must create an account on Liverpool's Licensing and Regulations (LAR) system and apply online.
You need:
- Landlord / licence holder and manager details.
- Property address, occupancy details.
- Gas safety (if applicable), EICR, EPC.
- Card payment for initial fee instalment.
The council expects landlords to apply promptly at the start of the scheme or when they first let a property in a designated area; operating "while you get round to it" counts as unlicensed.
Impact on the market and landlord response
From council comms, agents, and national press:
Coverage: roughly 45,000-46,000 rented homes, 80% of PRS in the city, are now under selective licensing.
Conditions: council and campaigners point to:
- Improved safety and energy standards in a significant number of homes.
- Better data on the PRS and rogue landlords.
Investor behaviour:
- Some landlords, particularly small non-compliant operators, have sold or avoided the covered wards.
- Many professional investors still see Liverpool as attractive because purchase prices remain relatively low and rents strong, even after factoring in GBP 422-704 licence fees every 5 years.
Future direction: The council has announced plans to consult on a new scheme from April 2027 that would cover the whole city, going beyond the current 80% coverage.
Liverpool has become a reference point for other councils considering wide selective schemes, alongside Newham and Nottingham.
What forums get wrong about Liverpool selective licensing
Myth 1: "Liverpool's city-wide selective licensing ended; only HMOs need licences now."
Reality: The first full city-wide scheme (2015-2020) ended, but the current scheme (1 Apr 2022 - 31 Mar 2027) covers most of the city, including 16+ wards and ~80% of PRS homes. A replacement from April 2027 is planned with full city-wide coverage on the table.
Myth 2: "Selective licensing is only a little patch, most BTL areas are free."
Reality: Designated wards include Anfield, Wavertree, Kensington and Fairfield, Picton, Princes Park, Riverside, Old Swan, Warbreck and more, i.e. exactly where HMO investors and single-let investors buy.
Myth 3: "The fee is small and enforcement is weak, so it is just a stealth tax."
Reality: Fees are GBP 422-704 per property depending on EPC and status, and the council is expanding enforcement staff to ~120 officers, explicitly to ramp up civil penalties and inspections in the 46,000 licensed homes.
Myth 4: "Selective licensing only affects vanilla single-lets, HMOs are separate."
Reality: HMOs in designated wards still need mandatory HMO licences, and small HMOs that fall outside Part 2 can still require selective licences if they are not licensable under HMO rules. You must run each property through both schemes.
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