Selective Licensing in Teesside: Which Areas Are Affected?

Selective licensing has become one of the most significant regulatory developments for landlords operating in Teesside over the past few years. If you own rental property in Middlesbrough or the surrounding boroughs, understanding whether your property falls within a designated area is not optional — it is a legal requirement that carries serious financial consequences if ignored.

What Is Selective Licensing?

Selective licensing gives local authorities the power to require all privately rented properties within a designated area to hold a licence, regardless of the property type or number of occupants. It differs from mandatory HMO licensing, which only applies to houses in multiple occupation meeting specific criteria. Under a selective licensing scheme, even a standard two-bedroom terraced house let to a single family requires a licence if it falls within the designated zone.

The stated objectives are typically to tackle poor housing conditions, reduce antisocial behaviour, and improve the overall management of the private rented sector. In practice, it means landlords must apply for a licence, pay a fee, meet certain conditions around property standards, and demonstrate that they are a fit and proper person to hold a licence.

Which Areas in Teesside Are Affected?

Middlesbrough

Middlesbrough Council has been one of the more active authorities in the region when it comes to selective licensing. Designations have historically focused on areas with high concentrations of private rented stock and where the council has identified issues with property condition or management.

Wards such as Newport (covering parts of TS1), North Ormesby (TS3), and areas around central Middlesbrough have been subject to selective licensing designations. The council periodically reviews these designations and can extend or introduce new ones, so it is essential to check the current position rather than relying on information that may be several months old.

Redcar and Cleveland

Redcar and Cleveland Borough Council has also explored selective licensing in certain areas, particularly in South Bank and parts of the TS6 postcode where the private rented sector makes up a significant proportion of the housing stock.

Stockton-on-Tees and Hartlepool

Both Stockton and Hartlepool councils have considered or implemented selective licensing in targeted areas. The scope and duration of these schemes varies, and landlords with properties in these boroughs should check directly with the relevant council for the most current information.

What Does a Selective Licence Require?

Once you have established that your property falls within a designated area, you must apply for a licence from the local authority. The application process typically involves the following:

Application fee — fees vary by council but typically range from £500 to £750 for a five-year licence period. Some councils offer early bird discounts for applications submitted within the first few months of a new designation.

Fit and proper person declaration — you must declare any relevant criminal convictions, involvement in unlawful discrimination, and confirm that you have not breached housing or landlord-tenant law. If you use a managing agent, they must also meet this standard.

Property conditions — the property must meet certain minimum standards. This typically includes having valid gas safety certificates, electrical installation condition reports, smoke and carbon monoxide alarms, and an adequate energy performance certificate. Some councils impose additional conditions around tenancy management, property inspections, and handling of antisocial behaviour.

Tenancy management plan — many councils require landlords to demonstrate how they will manage the tenancy, including references for new tenants, regular inspections, and procedures for dealing with complaints.

The Penalties for Non-Compliance

Operating a rental property without a licence in a designated selective licensing area is a criminal offence. The penalties are significant and have become more aggressively enforced in recent years.

Civil penalties — local authorities can issue civil penalty notices of up to £30,000 per offence as an alternative to prosecution. Middlesbrough Council has publicly stated its intention to take robust enforcement action against unlicensed landlords.

Rent repayment orders — tenants in unlicensed properties can apply to the First-tier Tribunal for a rent repayment order covering up to twelve months of rent. This means that on top of any fine, you could be ordered to repay thousands of pounds directly to your tenant.

Inability to serve Section 21 — while a property is required to be licensed but is not, you cannot serve a valid Section 21 notice. This effectively prevents you from using the no-fault eviction process, which can create serious problems if you need to regain possession of the property.

Criminal prosecution — in the most serious cases, the council can pursue criminal prosecution, which can result in an unlimited fine.

How to Check if Your Property Is in a Designated Area

The most reliable method is to check directly with the relevant local authority. Middlesbrough Council maintains information on its website about current and proposed selective licensing designations. You can also contact the council's private sector housing team directly.

At Ascot Knight, we maintain up-to-date records of all licensing designations across the Teesside boroughs where we operate. For our fully managed landlords, we handle the entire licensing process — from checking whether a licence is required, through to completing the application, ensuring all property conditions are met, and managing renewal when the licence period expires.

Planning Ahead

If you are considering purchasing a buy-to-let property in Middlesbrough or the wider Teesside area, selective licensing should be factored into your financial planning from the outset. The licence fee itself is not enormous when spread over five years, but the additional requirements around property condition and management standards do carry ongoing costs.

It is also worth noting that councils can introduce new designations with relatively short notice. An area that is not currently covered could become designated within a year or two, particularly if the council identifies deteriorating conditions in the private rented sector.

Stay Compliant with Ascot Knight

Navigating selective licensing requirements across multiple Teesside boroughs can be complex, particularly if you own properties in different council areas with different schemes and conditions. Our property management service ensures that every property in our portfolio is fully compliant with all licensing requirements, and we monitor for new designations as they are announced.

If you are unsure whether your Middlesbrough or Teesside rental property requires a selective licence, or if you want to ensure your application meets all the council's conditions, get in touch with the Ascot Knight team. We are here to keep you on the right side of the regulations.