Liverpool City Council has launched a consultation on the future of its selective licensing scheme for private rental properties, with the current programme set to expire in 2027.
Councillors approved plans at a cabinet meeting to seek feedback from residents, landlords and letting agents on whether a replacement scheme should cover the entire city or be limited to specific neighbourhoods.
Current scheme coverage
The existing selective licensing scheme, introduced in April 2022, covers 16 wards and approximately 80% of privately rented homes in Liverpool. Under the programme, landlords in designated areas must obtain a licence and meet defined standards for property management and tenant welfare.
According to the council, the scheme has improved standards, though non-compliance persists in some areas and enforcement challenges remain. The consultation will determine whether to extend the scheme city-wide or maintain a targeted approach.
Councillor Hetty Wood, Cabinet Member for Housing, told Place North West: “Selective licensing has helped to raise standards and protect tenants in some of our communities. This consultation is an important next step, giving residents and landlords the chance to shape how we continue that work in the future.”
Empty homes initiative
Alongside the licensing consultation, Liverpool has approved a £7.3 million package aimed at bringing empty homes back into use. The funding will support enforcement tools including compulsory purchase and enforced sale, as well as grants for property owners willing to refurbish vacant properties.
The city currently has 10,378 empty homes. Where feasible, the funding will prioritise returning these properties to use as affordable rented housing. The dual approach of licensing and empty homes intervention comes as tenanted property auction sales have increased 70% nationally, indicating landlord exits from the sector.
Market implications
The potential expansion of selective licensing to all areas of Liverpool could affect landlords’ operating costs and compliance requirements across the city. Despite sector challenges, buy-to-let landlords report an 84% profitability rate nationally, though regulatory costs continue to rise.
The consultation period will allow stakeholders to assess the financial and operational impact of different licensing models before the council makes a final decision on the scheme’s future scope and structure.
