Selective Licensing in Middlesbrough

Middlesbrough is still one of the cheapest high-yield plays in England, but the selective licensing net is tight in the worst streets: three overlapping schemes across North Ormesby and Newport, with fees in the GBP 845-998 range and real enforcement.

Current schemes, areas, and dates

Middlesbrough runs three selective schemes, all in and around North Ormesby and Newport.

North Ormesby ward

• Entire ward designated.
• Scheme end: 13 June 2026.

Newport 1 (original Newport scheme, now "Phase 1 / Newport 1")

• Covers part of Newport ward.
• Renewal/phase-2 designation currently runs to 2 July 2028.

Newport 2 (later extension area)

• Covers further parts of Newport ward, starting later.
• Scheme end: 2 July 2028.

Council summary: "The selective landlord licensing scheme currently runs in North Ormesby and parts of Newport ward... all licences in Newport 2 will cease on 2 July 2028."

In all of these areas, every privately rented property (single let or small HMO that is not already mandatory-licensed) needs a selective licence.

Fees (2025-26)

From the council's live page and fee policy:

North Ormesby:

• Licence fee: GBP 845 per property.
• Plus GBP 20 one-off fit and proper person test fee.

Newport 2:

• Licence fee: GBP 861 per property.
• Plus GBP 20 fit-and-proper test fee.

Newport 1 (phase 2):

• Licence fee: GBP 998 per property (after a 2024 increase from around GBP 820).

Earlier consultation set an initial Newport 2 fee at GBP 760 + GBP 20; subsequent fee updates have pushed Newport 1 up to GBP 998.

There is no additional HMO licensing in Middlesbrough; only mandatory HMO licensing applies for 5+ sharers.

Conditions, enforcement, exemptions

Licence conditions

All three schemes impose standard conditions:

• Fit and proper person test for licence holder and manager.
• Property condition: must meet minimum standards, free from serious hazards.
• Safety: gas safety, EICR, smoke/CO alarms, as appropriate.
• Management:
• Written tenancy agreements.
• Correct deposit protection.
• Reasonable steps to address antisocial behaviour.

Conditions are enforced through inspections, licence reviews, and penalties.

Enforcement

The Selective Landlord Licensing procedure 2025 is clear:

• It is a criminal offence to manage or control a property that requires a licence but does not have one.
• Breaches of licence conditions are also offences.

Sanctions include:

• Civil financial penalties up to GBP 30,000.
• Prosecution in the magistrates' court.
• Rent Repayment Orders for up to 12 months' rent, with new Renters' Rights Act guidance making them easier to obtain.

The procedure explicitly says intentional avoidance of licensing (e.g. knowingly failing to license multiple properties) will be treated more harshly.

Middlesbrough has also been at the centre of landlord pushback on fees:

• 2017-24: landlords launched legal action calling the GBP 998 Newport fee "rapacious and unreasonable"; the council argues fees reflect the cost of inspections and enforcement in very low-value, high-problem streets.

Exemptions

Standard exemptions apply:

• Mandatory HMO-licensed properties.
• Registered social landlords / some housing association stock.
• Certain long leases, business tenancies, and specified managed student halls.

But if you own a BTL in North Ormesby or the designated parts of Newport, assume it needs a selective licence unless it is already under mandatory HMO licensing.

Application process

Where to apply: via Middlesbrough's Selective Landlord Licensing page and online application portal.

What you provide:

• Landlord and manager details, including fit-and-proper declarations.
• Property address and occupancy.
• Evidence of gas safety, electrics, EPC where relevant.
• Payment of the licence fee + GBP 20 fit-and-proper charge.

Licences are typically for 5 years, unless the council has concerns and issues shorter licenses.

Impact on a high-yield, low-value market

Middlesbrough is exactly the market where licensing can look punitive in percentage terms:

• Typical terraces in North Ormesby / Newport bought for GBP 40k-60k, with rents GBP 400-500/month.
• That is GBP 4,800-6,000/year gross rent; a GBP 845-998 licence over 5 years is ~GBP 170-200/year, or 3-4% of gross rent.

The council's own evaluation of Newport schemes found:

• Improved property prices in the designated areas.
• Better housing standards and reduced ASB.
• Tenants reporting feeling safer.

Landlord response:

• Some low-capital, high-yield landlords have tried to resist or challenge the schemes, including going to court over the fee levels.
• Others accept GBP 845-998 per property as a cost of operating where yields are still high and voids are low once properties are properly managed.
• MP Luke Myer has held up selective licensing in Middlesbrough and Stockton as a model for dealing with "irresponsible landlords" in surrounding boroughs.

What forums get wrong about Middlesbrough

Myth 1: "Selective licensing was a trial in North Ormesby years ago, it's finished now."

Reality: The North Ormesby scheme runs to 13 June 2026, and Newport schemes run to 2 July 2028, covering large chunks of the ward.

Myth 2: "Only HMOs or problem houses need a licence; single-lets are exempt."

Reality: In designated areas, all privately rented properties (single-lets and small sharers) need a licence unless exempt; it is not limited to HMOs.

Myth 3: "The fee is a token couple of hundred pounds."

Reality: Current fees are GBP 845 (North Ormesby), GBP 861 (Newport 2) and GBP 998 (Newport 1 phase 2), plus GBP 20 per licence for fit-and-proper checks.

Myth 4: "They won't enforce in such a poor area, it's just a registration exercise."

Reality: The 2025 procedure sets out civil penalties up to GBP 30,000, prosecutions, and RROs up to 12 months' rent, with deliberate avoidance treated as an aggravating factor.

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