A legal expert has warned that ditching the 20/20 rule around selective licensing will prompt more councils to launch or expand schemes.

Last December, the Government introduced changes to the rules that allow local housing authorities to bring in any size of scheme without needing Secretary of State approval.

The previous rule meant that consent was needed for schemes covering more than 20% of an authority’s geographical area or more than 20% of PRS homes.

“Consent was not granted in every instance,” explains Tara O’Leary, a barrister at Cornerstone Barristers.

Licensing scheme changes

“In particular, whole-borough licensing schemes became unusual. Rather, LHAs often focused their proposed schemes on a small number of wards within their districts where they could show that the statutory tests were satisfied.”  

The changes are having immediate results, she says. In January, Barking and Dagenham Council announced it would introduce a borough-wide licensing scheme in April, having been waiting on ministerial approval for a 20% scheme since last summer.  

It would also appear that LHAs operating narrow selective licensing schemes adopted before December 2024 can now choose to review and revoke their scheme and replace it with a larger scheme which could remain in place for up to five years, says Leary, writing in Local Government Lawyer.

She adds: “LHAs who take advantage of the changes will no doubt face an increased burden in policing and enforcing wider schemes. On the other hand, the likelihood for landlords is an increased burden to apply for licences and comply with licence conditions.”

When making their decisions, councils must now consult with the mayor in mayoral strategic authority areas, provide DHCLG with data about their schemes at the start and completion and publish the outcome of any review on their website.

The same conditions apply, however: they must hold a 10-week public consultation first, and ensure the scheme satisfies one or more conditions such as the area is, or is likely to become, an area of low housing demand.

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