Property Licence

County Durham licensing / Selective licensing

Selective licensing in County Durham

Active in County Durham

Selective licensing applies to most private rented homes inside a designated area. County Durham has at least one active selective scheme. The detail below is built from the council's own pages.

What selective licensing actually means

A council can designate any part of its area for selective licensing under Part 3 of the Housing Act 2004. Inside the designated area, almost every privately rented home needs a licence, whether the property is a single-family let, a small flat, or a house shared by a couple.

Selective licensing is not about HMOs. The rule keys off the fact that the home is privately rented, not how many people live in it or how many households share it.

Renting out without a licence inside a designated area is a criminal offence. Councils can apply a civil penalty of up to £40,000 per offence, and tenants can apply for a rent repayment order of up to 12 months of rent.

Check an address against the scheme

Enter the postcode and pick the address. We check the selected street against the council's published scheme area and tell you whether the licence applies.

County Durham selective licensing schemes

County Durham selective licensing 2022 to 2027

Selective licensing · active · lsoa

Coverage
lsoa
Runs
1 Apr 2022 to 31 Mar 2027
Term
5 years
Fee per property
£585

County Durham selective licensing applies to privately rented homes in 103 designated LSOAs and runs from 1 April 2022 to 31 March 2027.

The scheme is scoped to small statistical areas (LSOAs) from the Office for National Statistics. Each LSOA is a few hundred households, and the boundaries do not follow street names, so two neighbouring streets can fall on different sides.

The standard fee is £585 per property, paid in two parts: £200 on application (Part A) and £385 when the draft licence is issued (Part B). Existing qualifying licence holders pay £435: £165 Part A and £270 Part B.

Properties exempt from this scheme

  • Local housing authority or registered social landlord tenancies
  • Holiday lets
  • A family member renting the property from the landlord
  • Long lease tenancies of 21 years
  • Business tenancies
  • Properties where the council has taken action to close the property down
  • Licensable HMOs under Part 2 of the Housing Act 2004
  • Temporary exemption notices
  • Empty properties, until a licence is successfully applied for before a tenant moves in
  • Temporary exemption notices for up to three months where the property is being sold or the tenancy is ending

Discounts the council offers

  • £150 discount for an existing County Durham selective licence holder on 1 April 2025 who applies for an additional property within 12 weeks of it becoming licensable

A landlord who qualifies for the strongest energy and accreditation discounts on this scheme pays around £435 instead of the headline £585 fee, a saving of £150.

Small statistical areas covered

Acre Rigg North, Acre Rigg South, Annfield Plain, Bearpark, Blackhall Colliery North, Blackhall Colliery South, Blackhall Rocks North, Blackhall Rocks South, Catchgate North, Chester Central 2, Chester West 2, Cockton Hill East, Cockton Hill North, Consett South, Consett West, Coundon Grange, Coundon South, Craghead North, Crook Central 2, Crook East, Dalton le Dale, Dalton Park, Dawdon North 2, Dawdon South 1, Dawdon South 2, Deaf Hill, Dene House Central, Dene House East, Easington Colliery Central, Easington Colliery North, Easington Colliery South, Eden Hill Central, Eden Hill North, Eden Hill South, Eldon, Esh Winning, Ferryhill Dean Bank North, Ferryhill Dean Bank South, Ferryhill South & Station, Grange Villa, Haswell, Havannah South, Henknowle North, Henknowle South, Horden Central, Horden East, Horden North, Horden South, Horden West, Howletch East, Hunwick, Kelloe, Leadgate Central, Leadgate North, Low Spennymoor, Middlestone Moor, Midridge South, Moorside West, Murton Central, Murton East, Murton Moor & Sth Hetton, New Kyo, New Shildon, Newfield, Passfield East, Passfield North, Pelton Fell, Pelton North, Roddymoor, Seaham Harbour South, Shildon East, Shildon West, Shotton Colliery Central, Shotton East, South Hetton East, South Moor Central, South Moor North, South Moor South, Spennymoor Central, Stanley Crook, Stanley Hall North, Stanley Hall West, Station Town, Sunnybrow, Sunnydale, Thickley, Toronto, Tow Law Central, Tow Law Rural, Trimdon South, Ushaw Moor East, Waterhouses, West Auckland East, West Central, West Cornforth, West North, West South, Wheatley Hill North, Wheatley Hill South, Willington Central, Wingate West, Woodham Village SW, Woodhouse Close South.

Who needs a selective licence

If the property is inside the scheme area and rented out under most types of tenancy, the landlord usually needs a licence. That includes a couple renting a flat, a single tenant renting a whole house, and a family renting a terrace.

A selective licence does not normally apply to social housing, holiday lets, properties under the Housing Act 1985 Part 7, or homes already licensed as HMOs. The council's notice of designation lists the exact exemptions, and they vary scheme to scheme.

Whoever is in control of the property is responsible for the licence. That is normally the freeholder for a house, or the leaseholder for a flat. A managing agent can hold the licence with the landlord's written agreement.

Selective licensing and HMO licensing in County Durham

Selective licensing and HMO licensing are different rules. A property only needs one licence at a time. If the property meets the test for a mandatory HMO (five or more people in two or more households) or for an additional HMO licence the council runs, that takes precedence and the property does not also need a selective licence.

County Durham does not currently run an additional HMO licensing scheme. Larger HMOs still need a mandatory HMO licence under national law, but a small house share that does not meet the mandatory threshold falls back under selective licensing in scheme areas.

The practical effect: check the HMO rules first. If the property is an HMO under either definition, apply for the HMO licence. If it is a single-household let inside a designated selective area, apply for the selective licence instead.

How to apply

Applications go through the council. Most have an online form that takes the property address, the landlord and agent details, gas and electrical safety certificates, an Energy Performance Certificate, and proof of right to manage. Councils ask for the fee up front, usually split between a non-refundable application fee and a grant fee paid when the licence is issued.

A licence usually runs for five years. If the council renews the designation, every existing licence has to be re-applied for. Fees and conditions can change between renewals.

A licence is tied to the named landlord and the named property. Sell the property, change the manager, or move out and the licence does not transfer. The council needs a new application.

What happens if you do not licence

Renting out an unlicensed property in a designated area is a criminal offence under section 95 of the Housing Act 2004. Councils can prosecute, or apply a civil penalty of up to £40,000 instead under section 249A. The decision is the council's, and a civil penalty does not need a court case.

A tenant can apply for a rent repayment order for up to 12 months of rent already paid. Universal Credit and housing benefit paid for the same period can also be reclaimed by the council under section 41 of the Housing and Planning Act 2016. Two separate offences in 12 months can trigger a banning order, which removes the landlord from the rental market entirely.

A landlord who has not applied for a licence cannot serve a valid section 21 no-fault eviction notice. The block lasts until the licence is in place. A tenancy started inside the scheme area without a licence remains valid; only the eviction route is closed.

Talk to County Durham directly

Anything on this page that you cannot find an answer to, the council's licensing team can confirm in minutes.

Mortgage and insurance implications

A buy-to-let mortgage usually requires the landlord to hold any licence the council demands. Lenders ask for the licence reference at the point of letting and again at renewal. Letting an unlicensed property in a designated area can technically breach the mortgage terms, and lenders have called in loans on that basis.

Landlord insurance is similar. Insurers normally require any licensable property to actually be licensed, and a civil penalty or rent repayment order can void cover for related claims. Disclose the licence status on renewal.

Buyers of let properties in County Durham should ask the seller for the licence reference and the conditions attached to it. The licence ends on sale, but the conditions tell the buyer what improvements the council has already required.