The government says selective licensing will stay in place, despite the arrival of a new landlord database as part of the Renters Rights Act reforms.
Many observers have suggested that selective licensing regimes conducted by some councils will be overtaken by similar information contained on the database, scheduled for 2027. It is thought the mandatory database may therefore make the voluntary – and expensive – licensing system redundant.
This concern was behind a Parliamentary question by cross-bench peer Lord Truscott, who asked the government: “What assessment they have made of whether local authority selective licensing for residential properties will duplicate the private rented sector database in the Renters’ Rights Act 2025; and what assessment they have made of the impact of each of those schemes on costs for landlords and tenants.”
However, government spokesperson Baroness Taylor of Stevenage made a stout defence of licensing, saying: “Selective licensing and the Private Rented Sector Database have different purposes. Unlike the Database, selective licensing schemes aim to target specific local issues by enabling more intensive proactive enforcement strategies.
“We recognise the need to keep requirements for landlords proportionate and fair. While Database registration brings some additional requirements, we are committed to ensuring these remain reasonable.
“We will continue to review the use of selective licensing as we develop the Private Rented Sector Database – refining the way the two systems work together.”
The Baroness also warned that a new regulation system for Airbnb-style short lets is also on the way.
In a written reply to Lord Truscott she wrote: “The government recognises that excessive concentrations of short-term lets can impact on housing availability and affordability and place pressure on local services.
“We have abolished the furnished holiday lets tax regime, meaning landlords will no longer be incentivised by the tax system to make their properties available as short-term holiday lets rather than longer-term homes. From 31 October 2024, higher rates of Stamp Duty Land Tax on additional dwellings increased from three to five percentage points above standard rates.
“The Renters’ Rights Act includes a provision to prevent landlords from evicting tenants simply to convert properties into holiday lets. In addition, the Department for Culture, Media and Sport is progressing a national registration scheme for short-term lets. We are also empowering Mayors to introduce a visitor levy on short-term overnight accommodation in their region and continue to consider whether further powers are needed for local authorities.”
