Part 3 of the Housing Act 2004 gives local authorities the discretion to introduce selective licensing schemes to cover all privately rented property in designated areas which suffer, or are likely to suffer from, low housing demand and also to those that suffer from significant and persistent antisocial behaviour. The use of this discretionary power is subject to local consultation and the consent of the Secretary of State. A selective licensing scheme is not limited to HMOs.
A scheme does not come into effect until three months after it is made and may last up to five years.