Selective licensing in Merton

Active in Merton

Selective licensing applies to most private rented homes inside a designated area. Merton 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.

Merton selective licensing schemes

Merton selective licensing

Selective licensing · active · Listed wards

Coverage: Listed wards
Term: 5 years
Fee per property: £747.60

Merton selective licensing applies to privately rented properties occupied by a single household in the listed wards.

The scheme covers 4 named wards. Two streets on either side of a ward boundary can end up with different answers, so checking the ward of the property matters more than the postcode.

Paid in two parts: £267 on application (Part A) and £480.60 on approval (Part B).

Properties exempt from this scheme

A prohibition order under the Housing Act 2004 is in force
The property is being used for business premises
The property requires another type of licence, for example an HMO licence
The property has a tenancy for agricultural land and/or holdings
The property is managed or controlled by a local housing authority, a police authority, a fire and rescue authority or a health service body
The property is owned by registered social landlords, such as a housing association
The property is a holiday home
The property is occupied solely by students undertaking a full-time further or higher education course where the manager or controller is the educational establishment
The tenancy agreement has been granted for a term of 21 or more years and does not allow the landlord to end the tenancy earlier other than forfeiture
The property is occupied by a family member under a tenancy or licence granted by the owner or long leaseholder
The occupier shares living accommodation with the landlord, licensor, or a member of their family
If the property is not tenanted at the start of designation and remains unoccupied throughout the period of the licence
The property falls within another category of building exempted by Schedule 14 to the Housing Act 2004

Discounts the council offers

£50 discount may apply where the applicant is accredited under, or a member of, LLAS, NRLA, NALS, UKALA, ARLA or RICS.
Discounts are determined after submission and assessment of the full application and supporting documents.
A discount will not apply where the council has made two or more consecutive requests for additional supporting documents or information.
A discount will not apply where the council has served a warning letter or notice for failure to license a property.

Wards covered

Figge's Marsh, Graveney, Longthornton, Pollards Hill.

Apply for this licence on the council site

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 Merton

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.

Merton also runs an additional HMO licensing scheme. A small house share that does not meet the mandatory threshold can still be caught by that scheme, again replacing the need for a selective licence at the same address.

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.

The council can record the offence against the landlord or agent. Repeated housing offences can lead to a banning order and can affect future licence applications.

Talk to Merton directly

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

Email the licensing team

[email protected]

Apply for a licence

Application form on Merton's website

Official licensing page

Merton council guidance

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 Merton 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.