Key Points
- London Borough of Havering has announced additional and selective licensing schemes starting on 18 March 2026, as detailed on londonpropertylicensing.co.uk.
- There were 46 selective and additional licensing schemes in operation across England in 2025, with a further 16 planned for 2026, including Havering.
- Thurrock Council’s proposed licensing scheme is currently suspended pending a judicial review over alleged insufficient consultation; fees paid by landlords are held securely.
- Bolton Council has opened a public consultation on a proposed additional licensing scheme for houses in multiple occupation (HMOs).
- Chancellor Rachel Reeves was found not to have the necessary selective licence for a rental property in Autumn 2025, with fault attributed to the letting agent (reported by BBC News).
- The Renters’ Rights Act 2025 takes effect on 1 May 2026, abolishing no-fault evictions (Section 21 notices).
- Landlords without required selective licences cannot serve valid Section 21 notices under the new rules.
- Failing to obtain a selective licence can lead to criminal conviction, fines, or civil penalties up to £30,000 currently, rising to £40,000 for serious or repeat offences under the Renters’ Rights Act 2025.
- Rent Repayment Orders (RROs) will expand to allow claims for up to 24 months’ rent (previously 12 months) for legal contraventions.
- A national Private Rented Sector Database will launch in late 2026 as part of phase two of the Renters’ Rights Act, requiring all landlords to register, likely with a fee.
- Irwin Mitchell offers advice to landlords, managing agents, and tenants on selective licensing, application processes, and mitigation of penalties.
London Borough of Havering (East London Times) 11 February 2026 – The London Borough of Havering has announced that additional and selective licensing schemes for private rented properties will commence on 18 March 2026, intensifying regulatory pressures on landlords amid the impending abolition of Section 21 no-fault evictions under the Renters’ Rights Act 2025. This development forms part of a broader national trend, with 46 such schemes operational in 2025 and 16 more slated for 2026, heightening compliance demands as civil penalties rise to £40,000 and Rent Repayment Orders extend to 24 months’ rent. Landlords face urgent action, as non-compliance could invalidate eviction notices and trigger enforcement via a forthcoming national database.
- Key Points
- What Are Selective and Additional Licensing Schemes?
- Why Is Thurrock’s Scheme Suspended?
- What Is Happening in Bolton?
- How Did Chancellor Reeves’ Case Highlight the Issue?
- When Does the Renters’ Rights Act 2025 Take Effect?
- What Penalties Do Non-Compliant Landlords Face?
- How Will Rent Repayment Orders Change?
- What Does This Mean for Landlords in Havering?
- How Can Landlords Prepare Nationally?
- What Role Does the National Database Play?
- What Assistance Is Available from Experts?
- Broader Implications for the Rental Market
What Are Selective and Additional Licensing Schemes?
Selective licensing mandates that landlords obtain a licence from the local authority to rent out properties in designated areas, typically targeting poorer housing standards or high crime zones. Additional licensing extends to specific property types like houses in multiple occupation (HMOs) beyond mandatory requirements.
As outlined in a detailed analysis by Irwin Mitchell solicitors, many landlords remain unaware of these obligations, risking unlawful renting without the requisite licence. In Havering, the schemes will apply borough-wide from 18 March 2026, as announced on londonpropertylicensing.co.uk, compelling landlords to apply promptly to avoid penalties.
Irwin Mitchell’s expert commentary emphasises that councils must meet strict procedural requirements, including public consultation, before designating areas.
Why Is Thurrock’s Scheme Suspended?
Thurrock Council’s proposed landlord licensing scheme faces suspension due to a judicial review challenging insufficient consultation. As reported by YourThurrock.com on 4 February 2026, Thurrock Council vows to “robustly defend” the scheme, with all fees paid by landlords held securely pending the court’s decision on whether the review proceeds.
This case underscores procedural vulnerabilities, as inadequate consultation can halt implementations, leaving landlords in limbo.
What Is Happening in Bolton?
Bolton Council has launched a public consultation on introducing an additional HMO licensing scheme, as covered by Property118.com. The proposal targets houses in multiple occupation, requiring landlords to secure licences for compliance.
This mirrors national expansion, contributing to the 16 schemes planned for 2026.
How Did Chancellor Reeves’ Case Highlight the Issue?
Selective licensing grabbed headlines in Autumn 2025 when Chancellor Rachel Reeves was found lacking the necessary licence for a home she rented out, as reported live by BBC News. The letting agent bore fault for not obtaining it, but the incident spotlighted landlord responsibilities.
Reeves’ case serves as a cautionary tale, especially with new renter protections incoming in 2026.
When Does the Renters’ Rights Act 2025 Take Effect?
The Renters’ Rights Act 2025, enacted as UK legislation (legislation.gov.uk/ukpga/2025/26/contents), activates on 1 May 2026, formally ending Section 21 no-fault evictions. Landlords are reportedly panicking, serving notices preemptively, but those without selective licences cannot issue valid ones.
Irwin Mitchell notes this creates a double bind for non-compliant owners.
What Penalties Do Non-Compliant Landlords Face?
Failing to apply for a selective licence in designated areas risks criminal conviction or civil penalties up to £30,000 currently. The Renters’ Rights Act 2025 elevates this to £40,000 for serious or repeat offences.
Enforcement will streamline via a national Private Rented Sector Database in late 2026 (phase two), mandating landlord registration, likely with fees.
How Will Rent Repayment Orders Change?
Rent Repayment Orders (RROs), guided by gov.uk publications, currently allow local authorities and tenants to reclaim up to 12 months’ rent for contraventions. This expands to 24 months under the new Act, amplifying financial risks.
What Does This Mean for Landlords in Havering?
Havering landlords must secure licences by 18 March 2026 or face enforcement. With Section 21 ending soon after, non-compliance blocks evictions, per Irwin Mitchell’s analysis.
The borough joins a growing list, demanding proactive applications.
How Can Landlords Prepare Nationally?
Landlords should verify if properties fall within the 46 active or 16 upcoming schemes. Irwin Mitchell advises checking local authority designations immediately.
Public consultations, like Bolton’s, offer input opportunities.
What Role Does the National Database Play?
The late-2026 database centralises enforcement, requiring universal registration. It promises streamlined oversight but adds administrative burdens.
What Assistance Is Available from Experts?
Irwin Mitchell provides comprehensive support, advising landlords, agents, and tenants on selective licensing breaches. They assist with applications and mitigate penalties through representations, often reducing fines significantly.
As reported by Irwin Mitchell,
“We have assisted landlords who have got it wrong to put forward mitigation, which has resulted in significantly reduced financial penalties.”
Broader Implications for the Rental Market
These changes, culminating in 2026, reshape the private rented sector, prioritising tenant protections over landlord flexibilities. With Havering’s scheme as a focal point, alongside Thurrock’s review and Bolton’s consultation, councils intensify scrutiny.
Chancellor Reeves’ lapse, per BBC reporting, humanises the stakes for high-profile figures too.
The Renters’ Rights Act’s penalty hikes and RRO expansions deter non-compliance, while the database heralds digital enforcement.
Landlords ignoring these – from Havering’s 18 March deadline to national mandates – risk convictions, £40,000 fines, and rent refunds up to two years.
Procedural lessons from Thurrock highlight consultation’s importance.
