Selective Licensing Expanding Across London

London boroughs are forging ahead with new selective property licensing schemes that will bring thousands more rented homes under local regulation - just as tenancy law commences a major overhaul  in May 2026.

Under powers approved by the Government in December 2024, councils can introduce licensing schemes across their entire private rented sector without central sign-off, provided they run a 10-week consultation. 

The purpose of these schemes is clear: to improve property standards, formalise management responsibilities, and equip local authorities with the necessary powers to intervene where rental conditions are inadequate - thereby catalysing coordinated borough-level action to address substandard housing, rogue landlords, and neighbourhood antisocial behaviour.

Who’s in?

Waltham Forest, Lambeth, Tower Hamlets, Haringey and Westminster have already launched or approved major schemes. Waltham Forest’s borough-wide scheme began in May 2025, with standard fees set at £895. Lambeth’s two-phase rollout now covers nearly the entire borough, with licences priced at £923 and discounts available for accredited landlords or properties with strong EPC ratings. Meanwhile, Westminster’s scheme, which went live in November 2025, covers 15 of the borough’s 18 wards and is charged at £995 per property, with a similar discount structure to Lambeth.

Wandsworth Expansion

Perhaps the most aggressive expansion is unfolding in Wandsworth, where selective licensing went live on 1 July 2025 across Furzedown, South Balham, Tooting Bec and Tooting Broadway, requiring all privately rented homes in those wards to be licensed.

The scheme will widen from 1 April 2026, extending regulation to East Putney, West Putney and Northcote - capturing most rental homes across these neighbourhoods regardless of household size. Fees are reported at around £850, with penalties of up to £30,000 for landlords who fail to comply. 

The ‘For’ and ‘Against’

Councils argue that selective licensing allows them to identify sub-standard housing, enforce safety rules and clamp down on negligent landlords. Advocates say it provides renters with greater confidence and recourse. But landlord groups counter that schemes create costs and delays, with some warning that fees ultimately push rents higher.

Tightening Regulations 

This regulatory tightening comes ahead of the Renters’ Rights Act 2025, which takes effect on 1 May 2026. The Act abolishes Section 21 “no?fault” evictions, ends fixed-term Assured Shorthold Tenancies, limits rent increases to once per year and enhances tenant protections around discrimination and pets. 

Unprecedented Change

With selective licensing spreading at speed and national reforms looming, London’s rental market is entering a period of unprecedented regulatory change. For landlords, compliance is becoming more complex - and more costly. For tenants, the hope is that this layered approach will finally deliver better-managed, safer and more reliable homes.

This article is for informational purposes. Always seek professional advice before making any property decisions.