What the Rachel Reeves Case Reminds Us About Selective Licensing, and What It Means for Manchester Landlords

The recent media coverage surrounding Chancellor Rachel Reeves, who inadvertently rented out a property without the correct licence, is a timely reminder for landlords across the UK: licensing isn’t optional when it’s required.

In Reeves’ case, the property was located in a South London borough that operates a Selective Licensing scheme. Her letting agent reportedly failed to submit the application through a some misscommuncaiton, a costly oversight that’s now under national scrutiny.

But what does this mean for Manchester landlords, and could it happen to you?

What is Selective Licensing?

Selective Licensing is a local authority scheme that requires landlords to obtain a licence before letting out a property in certain designated areas. It’s aimed at improving housing standards and tackling issues such as anti-social behaviour or poor property conditions.

This is different from HMO licensing (which applies when a property is shared by multiple households). Selective licensing can apply even if you’re letting to a single family or couple, depending on the area.

Where Does Selective Licensing Apply in Manchester?

Manchester City Council currently operates selective licensing in specific neighbourhoods where the council has identified persistent issues with:

• Poor property conditions

• Low housing demand

• Anti-social behaviour

• High levels of deprivation or crime

Examples of areas that currently require selective licences (or have in recent years) include:

• Crumpsall

• Moss Side

• Moston

• Harpurhey

• Old Moat

The list can change, and new licensing areas are frequently introduced by the council, often following public consultation. So landlords need to check the latest designation maps and not rely on past assumptions.

🔗 Manchester City Council’s Licensing Schemes Page

What Happens If You Let Without a Licence?

Letting a property in a designated area without the required licence is a criminal offence. Local authorities can issue:

• Civil penalties of up to £30,000

• Rent repayment orders (tenants can reclaim up to 12 months’ rent)

• Criminal prosecution in serious cases

Rachel Reeves’ situation, while unintentional, is a real-world example of how easy it is to fall foul of the rules.

What We Do at Property Genius to Stay Compliant

When we list a new rental property, on the list of many things we check is whether any form of licensing is required.

In Manchester, that means asking:

✅ Is this property in a selective licensing area?

✅ Does the layout meet the criteria for a licensed HMO (House in Multiple Occupation)?

✅ Has the correct licence already been obtained, or do we need to apply?

In most cases, a selective licence is not needed. But when it is, we act swiftly and advise landlords accordingly, ensuring all legal responsibilities are met before a tenant moves in.

Our Advice to Landlords

• Never assume your property doesn’t need a licence, always check.

• If you use an agent, make sure they’ve verified the property’s licensing status.

• Remember: even if an agent handles the property, you as the landlord remain legally responsible for compliance.

• If you’re planning to rent out a property in or around Manchester, get in touch, we’ll guide you through any licensing obligations and handle the paperwork where needed

Final Thoughts

Rachel Reeves’ case may have involved high political office, but the lesson applies to every landlord in the UK. Licensing is a legal requirement, not a formality, and missing it can be costly.

 

📩 Need advice about licensing or letting out your property in Manchester? Contact us today for a free compliance check.