Selective Licensing in Teesside: Which Areas Are Affected?
Selective licensing in Teesside isn't optional. If you own a rental property in Middlesbrough or the wider Teesside area, you need to know which areas require licensing—and what happens if you don't comply.
Local authorities across Teesside have designated certain zones where all privately rented properties, regardless of size or occupant number, must hold a licence. The scheme sounds bureaucratic, but the enforcement is not: operating without one carries fines up to £30,000 and the possibility of tenants reclaiming a year's rent from you.
Here's what you need to know.
What Is Selective Licensing?
Selective licensing gives councils the power to require all privately rented properties within a designated area to hold a licence. It's different from mandatory HMO licensing—which only applies to houses in multiple occupation with five or more unrelated occupants.
Under selective licensing, even a standard two-bed terraced house let to one family needs a licence if it's in a designated zone.
The council's stated aim is to improve housing conditions, reduce antisocial behaviour, and tackle poor management of rental stock. In practice: you apply for a licence, pay a fee, prove your property meets certain standards, and demonstrate you're a fit and proper person to hold a licence.
Unlike HMO licensing, which has been mandatory since 2006, selective licensing is discretionary. Councils apply it to specific areas they deem problematic. They can renew designations, extend them, or let them lapse. This variability—different councils, different timescales, different fees, different conditions—is what makes selective licensing so important to understand early.
It's tedious. It's also law.
Which Areas in Teesside Are Affected?
Middlesbrough
Middlesbrough Council has been the most active in the region on selective licensing. Their scheme covers designated wards where private rented stock is concentrated and the council has identified management or condition issues.
Newport (TS1), North Ormesby (TS3), and central Middlesbrough have historically fallen within these designations. But the council reviews designations regularly and can extend them. Areas that weren't subject to licensing five years ago may now be covered. Don't assume an area is safe because it wasn't designated in 2024.
As of late 2024, Middlesbrough had one of the longest-running selective licensing schemes in the North East. It's also one of the most actively enforced. The council prioritises enforcement action, issuing civil penalties rather than pursuing prosecution in many cases.
Redcar and Cleveland
Redcar and Cleveland Borough Council has implemented selective licensing in targeted areas, particularly South Bank and parts of TS6 where private rental dominates the housing market.
South Bank has had a selective licensing scheme for several years. The scheme covers both long-term rental and holiday lets, so if you're considering short-term rental in this area, check the specific rules before purchasing.
Stockton-on-Tees
Stockton-on-Tees Borough Council operates selective licensing schemes in designated areas. The scope has expanded over recent years. If you own in central Stockton or specific wards identified by the council, contact them directly to confirm your position.
Hartlepool
Hartlepool Borough Council has selective licensing schemes in certain zones. Direct contact with the council gives you the current position—schemes and timelines vary across the borough.
The practical reality: if you own in TS1, TS3, TS5, TS6, or TS7, assume your property either is now subject to selective licensing or will be within the next two to three years. Many councils are extending designations as private rental stock grows.
What Does a Selective Licence Require?
Once you've confirmed your property is in a designated area, you need to apply. Here's what's involved.
Application fee and timeline
Expect £500–£750 for a five-year licence. Some councils offer early-bird discounts in the first few months after a new designation, so timing matters. The application window is typically 28–60 days after designation announcement, though councils can extend this.
The licence must be in place before you let the property. You cannot let and apply simultaneously.
Fit and proper person test
You must declare any relevant criminal convictions, breaches of housing law, or unlawful discrimination. The test is thorough: councils investigate whether you've breached the Equality Act, failed to comply with right to rent requirements, or mismanaged a tenancy in the past.
If you use a managing agent, they're also assessed. Councils want confirmation you're not a risk to tenants or the housing market.
Property standards—the critical part
The council will require:
- Valid gas safety certificate (annual, from a registered engineer)
- Electrical installation condition report (usually within five years)
- Smoke and carbon monoxide alarms (on every level, tested and working)
- Valid Energy Performance Certificate
- Fire safety equipment as applicable (fire doors, fire extinguishers in HMOs)
- Evidence of building insurance
- Proof of right to let the property (for leasehold, freeholder's consent; for mortgaged properties, lender approval)
This is where most landlords stumble. It's not just paperwork—the property must actually meet these standards, and the council may conduct an inspection to verify. If your boiler is overdue for service or your electrics haven't been checked recently, you'll need to address it before approval.
Tenancy management plan
Many councils require you to show how you'll manage the tenancy: tenant references, inspection frequency, complaint handling, and procedure for dealing with arrears. Document everything. Some councils want references from previous landlords and proof that the incoming tenant has been referenced.
The Penalties for Non-Compliance
Licensing isn't a suggestion. Operating without a licence in a designated area is a criminal offence with serious financial consequences.
Civil penalty notices
Local authorities can issue penalties of up to £30,000 per offence as an alternative to prosecution. Middlesbrough Council has stated it will enforce actively. Civil penalties are faster than prosecution and the bar for evidence is lower.
Rent repayment orders
A tenant in an unlicensed property can apply to the First-tier Tribunal to reclaim up to twelve months of rent from you. That's £4,000–£8,000 or more on top of any council fine. Tenants don't have to spend money to apply—councils often help them.
Loss of eviction rights
While your property should be licensed but isn't, you can't serve a valid notice. Following the Renters Reform Act in October 2024, Section 21 no longer exists anyway, but selective licensing non-compliance still prevents you from using whatever notice procedure the council allows.
Criminal prosecution
In serious cases, the council can pursue prosecution, resulting in an unlimited fine. This is rare for first-time breaches, but it happens to landlords who are aware of the requirement and ignore it.
Reputational damage
If you're issued a civil penalty or prosecuted, the council publishes enforcement action. Future tenants' referees see this. It affects your ability to let.
How to Check If Your Property Is in a Designated Area
Contact your local authority directly. Middlesbrough Council publishes its current designations on the council website, along with application deadlines and fees. If you manage properties across multiple Teesside boroughs, contact each council separately—schemes and timelines differ.
Here's what you're looking for:
- Current designated areas (by ward or postcode)
- Application deadline (if within a designation period)
- Licence fee
- Conditions and standards required
- Appeals procedure
We maintain up-to-date records of all licensing designations across the Teesside postcodes we operate. If you use our full management service, we handle checking, applying, and renewing your licence. If you're managing independently, flag licensing status with your accountant and buildings insurer—both ask about it, and failing to disclose can affect coverage.
Frequently Asked Questions
Q: Can I let my property while my selective licence application is being processed?
A: No. You must have the licence in place before you let the property. Application processing doesn't count as compliance. The process typically takes 4–8 weeks, so submit your application as early as possible—don't wait until the deadline.
Q: If my area becomes designated after I've already let the property, do I need a licence?
A: Yes. The council will enforce the new designation. Councils usually give landlords 28–56 days to apply, but you should apply immediately upon notice. The longer you delay, the greater your exposure to enforcement.
Q: Are selective licence fees tax-deductible?
A: Yes. Licensing fees are a legitimate business expense and deductible from rental income. Include them in your annual accounts and keep receipts and correspondence.
Q: What happens if I fail the fit and proper person test?
A: The council will reject your application. Appeal grounds are narrow. If you have relevant criminal convictions or housing law breaches, discuss the specifics with the council before applying. Some breaches are disqualifying; others are not.
Q: Do I need selective licensing if I let the property as a short-term rental or holiday let?
A: That's council-specific. Most councils applying selective licensing have separate rules for holiday lets—often more restrictive. Some Teesside councils restrict short-term rentals more strictly than long-term ones. Check the council's position on short-term rentals before purchasing or designating a property for that use.
Q: Can the council change my licence conditions mid-term?
A: Rarely, but they can enforce conditions more strictly if they receive complaints. Your best protection is staying compliant from the start. If you receive notice of a breach from the council, address it immediately—don't assume they'll ignore it.
Q: What if I disagree with the council's decision to designate an area?
A: There's no formal appeal process against the designation itself. Designations are typically made after consultation and reviewed periodically. If you have concerns, engage with your local councillor or a landlord association. The strongest argument is usually evidence that the council's stated issues have been addressed.
Q: If I'm a portfolio landlord with multiple properties in the same designated area, do I need a separate licence for each?
A: Yes. Each property requires its own licence, application, and fee. This is a significant cost if you're scaling. Factor it into your portfolio planning and cash-flow projections.
Staying Compliant
Selective licensing across Teesside adds a compliance layer—but it's not ambiguous. Requirements are published by local authorities and endorsed by gov.uk. Fees are fixed, and the process is documented.
What matters is not missing a deadline. If you own in a designated area and haven't applied, apply now. If you're considering buying in Middlesbrough or another Teesside borough, factor licensing fees (typically £2,500–£3,750 per property over five years) into your purchase costs and cash-flow projections. If you're unsure whether your property is affected, contact your council or reach out to Ascot Knight—we'll tell you the current position and handle the application if you want.