Padiham will be subject to selective landlord licensing for the first time councillors have decided.
The scheme aims to boost housing standards in the town.
Burnley Council's executive approved the introduction the scheme into Padiham when it met on Wednesday night.
The scheme requires all private landlords in designated areas to have licence from the local authority to let properties in the designated areas.
The aim is to tackle problems of poor quality housing, anti-social behaviour and low demand.
Landlords who fail to apply for a licence commit a criminal offence.
The executive meeting also voted to renew selective landlord licensing in Burnley's Trinity, Queensgate, Gannow, and Daneshouse and Stoneyholme areas from October,
The renewed scheme extends the number of streets covered in the Trinity, Queensgate, and Gannow wards.
Councillors agreed not to proceed with a sixth proposed designation in the Lyndhurst Road area of Burnley.
Instead the housing team will monitor the area over the next 24 months..
Burnley Council operates two further licensing schemes in Burnley Wood with Healey Wood and the Leyland Road area, designated from 2022 to 2027.
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