Selective Licensing is a regulatory measure that a local borough council can choose to implement. This type of licensing can apply to all rental properties within its jurisdiction, regardless of their size, the number of floors, or the number of occupants. For instance, a council has the authority to mandate licensing for all residential rental properties within a specific area, such as a street, a ward, or the entire borough.

Before issuing a license under this scheme, the local authority must ensure that both the property owner and any managing agents are deemed fit and proper to hold such a license. Additionally, the property in question must meet certain physical standards as set by the council. This process is designed to uphold the quality and safety of rental accommodations and to ensure responsible management and ownership practices within the rental sector.