Oldham Landlord Licensing: What You Need To Know

New or prospective landlords in Oldham need to know the rules around selective licensing. Oldham Council’s current selective licensing scheme came into force in 2022 and applies to specific areas of the borough. The scheme means that anyone looking to rent out property in this defined location must apply for a licence first.

If you don’t, you could be landed with a large fine and find it difficult to rent out property in Oldham.  If you’re a new landlord in Oldham borough, whether in Chadderton, Royton, Saddleworth or elsewhere, read on for more about the rules. 

What is landlord licensing  

Landlord licensing requires landlords to apply to the council for a licence before they rent out certain types of property and homes in certain areas. There are three types of landlord licensing in operation in England and Wales – mandatory licensing, additional licensing and selective licensing.   

Types of landlord licensing explained  

Mandatory licensing 

Mandatory licensing applies across England and Wales to houses in multiple occupation (HMOs) with five or more tenants, from more than one household, sharing kitchens or living areas. All landlords must apply for a licence from their local council before renting out this type of property, regardless of location. 

Additional licensing  

In addition to mandatory licensing, local councils have powers to introduce additional licensing schemes, which apply to smaller HMOs (those made up of three or more people sharing facilities). Councils introduce additional licensing schemes in specific locations with the aim of improving the standard of HMOs in the area. 

Selective licensing  

Councils also have the legal right to introduce selective licensing schemes, which apply to all rental properties in a defined area, regardless of whether they are HMOs or not.  

Why are landlord licences used?  

According to the government website, landlord licensing schemes were introduced to help create a strong and vibrant private rented sector with high quality homes for renters.  

Councils can introduce selective and additional licensing to help them address local issues including poor housing, antisocial behaviour and crime. They must consult residents in the area before they introduce a selective licensing scheme.   

Where do you need a selective licence in Oldham?  

Oldham Council has operated selective licensing since 2015. However, the current scheme was introduced in July 2022. It means that all privately rented properties within a specific area, must have a licence. 

You can check the exact area covered by the scheme on a map on the council website. However, the scheme is made up of areas within a number of Oldham Council wards:   

• Alexandra  
• St Mary’s 
• St James 
• Waterhead 
• Coldhurst 
• Werneth 
• Chadderton South 
• Hollinwood  
• Medlock Vale. 

If you are looking to rent out a home in these wards, check the council website as it is likely you will need to obtain a licence. This includes renting property to a single person, one household or two people sharing, in addition to the rules about HMOs.  

If you rent out a large HMO, to five or more people, you must obtain a mandatory licence – even if the property is not located in these wards.  

How to apply for a selective landlord licence  

You can apply for an Oldham Council selective licence on the council website. You will need to pay a fee and supply the following: 

• An in-date electrical installation condition report stating the installation is satisfactory and that there are no code 1or code 2 defects. 

• A current gas safety certificate. 

• A copy of the agreement between the property’s owner and managing agent, if there is one, setting out who is responsible for letting, repair and maintenance. If you manage the property yourself, you should supply a letter explaining this. 

• A bank statement, utility bill or other third-party document issued in the past six months that confirms the licence holder’s address. 

How much does a selective landlord licence cost? 

The Oldham Council selective licence fee costs £582 per licence. 

The fee is paid in two instalments: 

• You must pay £340.34 when you complete the application form. 
• You will then need to pay £241.66 if the licence is granted. 

What happens if you don’t get a licence when you need one?  

If you don’t obtain a licence, and need one, you could be committing a criminal offence and face a fine of up to £30,000. If you are convicted, you may find it difficult to rent out property again in the future. 

If you are a new landlord in Oldham, we would love to advise you about selective licensing schemes and other things you need to know to keep on the right side of the law. Give us a call today to find out more  

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