Westminster Approves Selective Licensing Scheme

Westminster City Council has approved a sweeping selective licensing scheme covering 15 of its 18 wards, aiming to crack down on substandard rental homes and anti-social behaviour from early 2026. The move means every privately rented single-family dwelling or flat in those areas will need a licence, adding a new layer of paperwork, fees, and inspections for landlords operating in one of the UK's most valuable rental markets.

What the scheme covers

Under the plan, Westminster will create two designations. Designation 1 spans eight wards with the highest concentration of poor housing conditions: Abbey Road, Church Street, Harrow Road, Knightsbridge & Belgravia, Little Venice, Maida Vale, Queen's Park, and Westbourne. Designation 2 includes seven wards that also suffer persistent anti-social behaviour: Bayswater, Hyde Park, Lancaster Gate, Marylebone, Pimlico North, Regent's Park, and the West End. Landlords in both zones must secure a licence for each property not already covered by mandatory or additional HMO licensing.

Fees, incentives, and enforcement

The council has yet to publish the final fee schedule, but officials indicate discounts for accredited landlords and energy-efficient homes. Draft conditions released alongside the approval papers require robust tenant reference checks, prompt repairs, smoke alarm maintenance, and written tenancy agreements compliant with the Renters' Rights Bill now in Parliament (revised licence conditions, Appendix 8 PDF). Failure to licence will be a criminal offence, with civil penalties of up to £30,000 per dwelling and potential rent repayment orders.

"The selective licensing scheme is about supporting responsible landlords and ensuring every resident has access to safe, secure, and well-maintained housing," said Councillor Matt Noble, cabinet member for regeneration and renters.

The council promises clear guidance on how and when to apply once the Secretary of State signs off the designations, a formality expected later this summer.

Policy backdrop and landlord reaction

Selective licensing powers under the Housing Act 2004 allow councils to target areas of low housing standards or anti-social behaviour, but schemes covering more than 20% of a borough need central government approval. Westminster's evidence base runs to 300 pages, citing over 11,000 category-1 and category-2 hazards, plus £30 million in estimated disrepair costs (evidence report).

Landlord groups acknowledge the aim of raising standards but warn of "licensing creep" and duplication with existing HMO rules. They also question whether council teams have the staff to process thousands of applications before the planned 2026 launch. In a sector already grappling with proposed EPC upgrades and the Renters' Rights Bill's abolition of Section 21, the added cost of licensing, estimated at £550 - £950 per property, could tip some portfolios into the red, investors say.

Yet Westminster argues that good operators will benefit. Apart from fee discounts, officials hint at fast-track processing for accredited landlords and a public register landlords can cite to show compliance. The scheme also dovetails with the borough's new Tenants' Charter, designed to give renters a single point of contact for complaints and mediation.

For now, Westminster landlords should audit property conditions, gather gas safety, electrical, and EPC documents, and ensure tenancy paperwork is watertight so they can hit the ground running once application portals open. The council's consultation shows that more than 60% of residents backed the plan, making a legal challenge unlikely. With other London boroughs watching closely, the capital's licensing patchwork is set to grow, and compliance may soon be a selling point, not a burden.