PRS Database vs Selective Licensing: Will You Need Both?

The Renters' Rights Act 2025 introduces a national PRS Database, and many landlords might assume it will replace local council licensing. It will not. Here is how the two compare, and whether you need both.

PRS Database vs selective licensing: the key differences

Both collect information about landlords and properties, and both aim to raise standards, which is why they are easy to confuse. The real difference is scope and purpose. Note too that both apply in England only, Wales has Rent Smart Wales and Scotland has the Scottish Landlord Register, which work differently.

Here are the key differences:

Does the PRS Database replace selective licensing?

No. Housing minister Matthew Pennycook told Parliament that the database is not designed to replace selective licensing, and that the two have different purposes, with licensing aimed at targeting specific local issues through more intensive enforcement.

The point was repeated in a written parliamentary answer confirming the schemes serve different purposes rather than duplicating one another.

Ministers have committed to keep reviewing selective licensing as the database develops, and to refine how the two work together, including by sharing data.

For the foreseeable future, plan on both applying where relevant.

So do you need both?

It depends on where your property is and what type of let it is.

Bear in mind the database is not open yet for registration

The PRS database is still being set up, and is expected to begin rolling out area by area from late 2026.

Some details, including the exact fee, are still to be confirmed, so treat the specifics below as the current direction of travel rather than settled rules.

Our Renters' Rights Act timeline tracks when each change takes effect.

If your property is in a selective licensing area or is a licensable HMO

You will need the local licence if your property is in a selective licensing area and you will need to register on the PRS Database once live. Registering does not remove the licence requirement, and holding a licence does not remove the registration requirement.

If your property is not in a designated area and is not a licensable HMO‍

You will only need to register on the PRS Database once registration opens.

For example a landlord letting one flat in a designated ward in, say, Liverpool or Lambeth needs a selective licence from the council now, and will also need to register that property on the PRS Database once it opens.

A landlord letting an identical flat in a nearby area with no designation needs only the database registration. Same property, different obligations, decided entirely by location.

There is a third obligation on the horizon

‍From 2028, landlords are also expected to join the PRS Landlord Ombudsman, a separate scheme again. Our guide to the PRS Ombudsman explains how that fits in.

Does selective licensing apply to my property?

To check whether selective licensing applies to you, find your council using the government's find your local council tool, then look for its property licensing pages. Most councils publish a designated-area map or a postcode checker, and it is worth checking periodically because schemes are introduced and renewed on rolling five-year cycles.

Keeping your certificates and property records organised in one place, as you can in Landlord Studio, means a licence renewal or a database registration is quick rather than a scramble.

What will it cost?

Licence fees are set locally and the database fee is not yet published, so there is no single figure.

As a rough guide:

• ‍Selective licence: commonly a few hundred to just over a thousand pounds per property for a five-year licence. Durham currently charges £585 per property, while Lambeth charges £1,025 from April 2026, which shows how much it varies by council.‍
• HMO licence: typically £500 to £2,500 per property, again depending on the council and the size of the HMO.‍
• PRS Database: an annual fee per property is expected, but the amount has not been set. The government has said it will be reasonable and proportionate.

The key point for budgeting is that these are separate charges. A licence fee does not cover database registration, and the other way round.

Frequently asked questions

What is the PRS Database?

The Private Rented Sector Database is a new national register of private landlords and rental properties in England, introduced by the Renters' Rights Act. Landlords will have to register themselves and their properties, and could face penalties for letting a property without doing so. See our full guide to the PRS Database, or the government's guide to the Renters' Rights Act, for more detail.

What is selective licensing?

Selective licensing is a scheme a local council can introduce in a designated area, requiring every privately rented home there to hold a licence, whether or not it is an HMO. It is used to tackle local problems such as poor housing conditions or anti-social behaviour. Our guide to landlord licensing covers who needs one, and the government publishes selective licensing guidance as well.

Will I have to pay for both?

Most likely, yes, if your property sits in a selective licensing area. You would pay your council's licence fee and, separately, the annual PRS Database registration fee once it is set. The database fee has not yet been confirmed, but is expected to be modest next to a licence.

Do I still need a licence if I have registered on the database?

Yes. Registering on the PRS Database does not satisfy a selective licensing or HMO licensing requirement. They are enforced separately, and you can be penalised for missing either.

How do I know if my property is in a selective licensing area?

Check your local council's website. Most publish their designated areas and let you search by address or postcode. Schemes change over time, so it is worth checking again periodically.