Brighton £740 landlord licence scheme paused by legal challenge

Brighton & Hove City Council has hit the brakes on its plan to force thousands more landlords into paid licensing. The selective licensing scheme for the Central Hove and Regency wards, due to switch on 20 October 2026, has been paused while the council reviews a legal challenge.

On its selective licensing page the council says the expansion “has been paused pending the review of a legal challenge”, and that the landlord engagement events planned for the launch are postponed too. The council estimated that up to 7,274 privately rented homes in the two wards would need a licence, at a standard fee of £740 each.

Brighton is the third council in a matter of weeks to change course after a challenge from landlords. Here is what the pause means, what the scheme would cost you if it goes ahead, and what you face if you get licensing wrong under the tougher penalties that arrived on 1 May 2026.

What Brighton has actually said

The council’s selective licensing page now states that its plan to expand the scheme to Central Hove and Regency, under a designation made on 6 July 2026, has been paused pending the review of a legal challenge. It adds that the landlord engagement events tied to the launch will be postponed while the review takes place.

That is all the council has said publicly. It has not said who brought the challenge, what the grounds are, or how long the review will take. We could not find a formal revocation notice, so the designation itself has not been cancelled. It is on hold.

The designation notice was signed on 6 July 2026. It was due to take effect on 20 October 2026 and run until midnight on 19 October 2031, the five-year maximum. Because it was made under the government’s 2024 general approval, it did not need sign-off from the Secretary of State.

The pause covers the expansion only. Brighton’s existing selective licensing scheme in Kemptown, Moulsecoomb and Bevendean, Queens Park, and Whitehawk and Marina still runs from 2 September 2024 to 1 September 2029. If you let property there, nothing has changed for you.

Who the scheme would cover

If the designation goes ahead, it applies to almost every privately rented house or flat in the Regency and Central Hove wards that is let under a tenancy or licence. In practice that means homes let to one person, two people or a family.

According to the designation notice, these are excluded:

• HMOs that need a mandatory HMO licence (five or more people forming two or more households)
• HMOs covered by Brighton’s citywide additional HMO scheme (two or more storeys with three or four occupants)
• Homes let by a registered social landlord
• Properties under an interim or final management order, or with a temporary exemption notice
• Tenancies exempted nationally under section 79(4) of the Housing Act 2004

One detail catches HMO landlords out. A single-storey flat with three or four sharers does not fall under the additional HMO scheme, which only covers buildings of two or more storeys. That flat would need a selective licence instead. Flats inside converted blocks (section 257 HMOs) would also need individual selective licences, because Brighton does not license those buildings under its additional scheme.

What a licence would cost you

Brighton charges one fee for each property, paid in two parts. Part A (£518) covers processing and is paid when you apply. It is not refunded if the application is refused or withdrawn. Part B (£222) covers the scheme’s running costs and is due within 10 working days of approval. The licence is only issued once Part B is paid.

Worked example 1, a single flat: you are an NRLA-accredited landlord and the flat has an EPC of C. You pay £590 for a licence lasting the whole five-year scheme. That works out at £9.83 a month. On rent of £1,400 a month, that is about 0.7% of your rent.

Worked example 2, four flats in one block: you own all four and hold every licence. The first flat costs £740 and each of the next three costs £690 with the £50 multi-dwelling discount, so £2,810 in total. If you also meet one of the discount criteria, flats two to four drop to £615 each, bringing the total to £2,585.

One catch: fees are not pro-rated. A licence runs from the date you apply until the scheme ends, so if the start date slips, you would pay the same fee for less cover. And if you sell, the buyer has to apply and pay again.

Cost and risk calculator

Enter your portfolio to see what licensing costs you each month, and how that compares with the maximum you could lose by not licensing.

The penalties for getting it wrong

Licensing penalties went up on 1 May 2026, when the first phase of the Renters’ Rights Act 2025 came into force in England. If a property needs a licence and does not have one, that is an offence under section 95(1) of the Housing Act 2004. The amended section now covers both the person managing or controlling the property and the landlord.

Worked example 3: a Regency flat let at £1,600 a month runs unlicensed for two years once a scheme is live. The council could impose a civil penalty of up to £40,000. A rent repayment order could claw back up to £38,400 (24 × £1,600). That is a worst case of £78,400, against a £740 fee.

There is a defence if a valid licence application was “duly made” and is still being decided. That is why applying promptly once a portal opens matters more than having every document perfect on day one.

Three councils, three U-turns

Brighton’s pause comes straight after two other councils backed down when landlord groups challenged their schemes. Here is what each council and challenger has confirmed.

The pattern is clear. Councils no longer need ministerial approval for schemes, so a legal challenge has become the main check on them. In all three cases the council changed course before any court ruling. Weak consultations and blanket conditions are the obvious targets.

What Central Hove and Regency landlords should do now

A pause is not a cancellation. The designation still exists and could restart, possibly at short notice. Use the breathing space to get ready.

1. Do not assume 20 October still applies. The council says the scheme is paused, so watch its selective licensing page for a new start date or a revocation notice.
2. Confirm which licence each property would need. Use the ward map and the rules above, and pay particular attention to single-storey shared flats and flats in converted blocks.
3. Line up your discounts now. Accreditation or an EPC of C could save £75 each, but only if you meet the criteria when you apply. Discounts cannot be claimed afterwards.
4. Collect your documents. Gas safety certificate, EICR, EPC, smoke and CO alarm records, tenancy paperwork and floor plans.
5. Budget for the fee. Plan for £518 at application and £222 within 10 working days of approval for each property.
6. Apply quickly if the scheme goes live. A duly made application protects you, and applying after 28 days unlicensed costs £100 more.
7. If you are in the existing four wards, carry on. That scheme is unaffected and runs until 1 September 2029.

• Property address checked against the Central Hove and Regency ward map
• Licence type confirmed: selective, additional HMO or mandatory HMO
• Gas safety certificate in date
• EICR in date (within 5 years)
• EPC on file, and noted whether it is C or above for the £75 discount
• Smoke alarm on every storey, CO alarm where required
• Accreditation (NRLA, ihowz or safeagent) in place or booked
• Proposed licence holder agreed (landlord or agent)
• £518 per property ready for Part A, plus £222 for Part B
• Council page bookmarked and alerts set for a restart date

FAQ

Do I need a selective licence in Central Hove or Regency from 20 October 2026?

The council says the scheme has been paused pending the review of a legal challenge, so it is not going ahead as planned for now. Check the council’s selective licensing page for any new start date before you apply.

How much is a selective licence in Brighton?

£740 per property, paid as £518 at application and £222 after approval. It falls to £665 with one discount or £590 with two, and rises to £840 if you apply late.

What is the fine for not having a landlord licence?

In England, a council can now impose a civil penalty of up to £40,000 for offences from 1 May 2026, or prosecute for an unlimited fine. A rent repayment order of up to two years’ rent can be added on top.

Does the pause affect Brighton’s existing licensing scheme?

No. The scheme covering Kemptown, Moulsecoomb and Bevendean, Queens Park, and Whitehawk and Marina still runs from 2 September 2024 to 1 September 2029. Brighton’s citywide additional HMO scheme and national mandatory HMO licensing also still apply.

Do councils still need government approval for selective licensing?

Not in England. Under the general approval in force since 23 December 2024, councils no longer need Secretary of State confirmation for a scheme, whatever its size. They must still consult for at least 10 weeks.