Selective licensing in County Durham
Yes. County Durham operates a selective licensing scheme. Letting a covered property without a licence risks a civil penalty of up to £40,000 and a rent repayment order of up to two years' rent.
Common questions
Do I need a selective licence in County Durham?
Yes. County Durham operates a selective licensing scheme. Letting a covered property without a licence risks a civil penalty of up to £40,000 and a rent repayment order of up to two years' rent.
Which areas of County Durham does the scheme cover?
103 designated areas covering about 29,000 homes, roughly 42 per cent of the county private rented sector. Approved by the Secretary of State 30 November 2021. Confirm a specific address against the council's own designation map before applying.
When does County Durham's scheme end?
The designation runs until 31 March 2027, unless the council revokes it earlier under section 84 of the Housing Act 2004.
What does the licence cost?
£435. Councils commonly discount for accredited landlords and early applications; confirm the current figure with County Durham before budgeting.
Paid in two parts — one on application, the balance before the licence is issued.
| Part A | £165 |
| Part B | £270 |
| Total | £435 |
| Each property | £585 |
- £150 discount and £35 refund mechanism
County Durham — durham.gov.uk, read 19 Aug 2026
What the designation says
County Durham operates a selective licensing scheme that has been in place since April 2022 and runs for five years, to March 2027. It covers 103 Lower Super Output Areas across four separate designations, taking in around 29,000 properties — roughly 42% of the county's private rented stock. Within a designated area every privately rented home needs a licence regardless of how many people occupy it. That has a particular consequence for shared housing: any house in multiple occupation inside a designated area needs a licence whatever its size, so the landlord of an HMO with fewer than five tenants needs a selective licence even though the property sits below the national mandatory threshold. Because the designations are drawn at Lower Super Output Area level rather than by ward, a landlord should check a specific address against the council's published map rather than assume from the town or postcode. The council is considering whether to continue the scheme beyond March 2027; a replacement would be smaller, covering an estimated 20,000 properties or about 27% of the county. Letting an unlicensed property inside a designated area is a criminal offence carrying a civil penalty of up to £40,000 or prosecution, and exposes the landlord to a rent repayment order. The £40,000 ceiling applies to offences committed on or after 1 May 2026; the £30,000 ceiling still applies to offences committed before that date.
What this means for a landlord
A licence must be in place before the property is let, not applied for afterwards. Operating unlicensed in a designated area is a criminal offence: a civil penalty of up to £40,000 per offence and a rent repayment order of up to two years' rent. Both maxima apply to conduct on or after 1 May 2026; before that date they were £30,000 and twelve months. Section 21 was abolished on 1 May 2026 and possession now runs through the amended section 8 grounds. Mandatory HMO licensing applies separately and everywhere, wherever a property is let to five or more people forming two or more households.
Information tool, not legal advice. Confirm the position with County Durham before letting.