TfL Proposes Ban on Licensing Salvage Vehicles: What PHV Drivers Need to Know

Transport for London (TfL) has launched a new consultation focusing on significant updates to vehicle licensing standards across London's taxi and private hire fleet. As part of the Taxi and Private Hire Action Plan 2025, TfL is taking steps to tighten vehicle safety regulations, most notably by proposing a complete ban on licensing salvage vehicles.
Jul 23 / www.seru.co.uk

Key Highlights of the TfL Proposal

The consultation outlines two major changes that will impact vehicle owners, operators, and prospective buyers in the London PCO trade:


1. Phasing Out Salvage Vehicles

TfL is proposing to stop licensing any taxi or private hire vehicles (PHVs) that have ever been recorded as salvage. The ultimate goal is to remove all salvage vehicles from the licensed fleet entirely to improve passenger, driver, and road safety.

  • Current Scale: According to TfL figures, just over 3% of the roughly 107,000-strong London fleet are currently identified as salvage (including around 3,520 PHVs and 35 taxis).

  • Timeline: TfL proposes that starting from autumn 2026, no new licences will be issued for vehicles with a salvage history. TfL is also gathering feedback on how to handle existing licensed salvage vehicles.


2. Strict Proof of Ownership Requirements

Regardless of whether a vehicle has a salvage history or not, TfL is proposing a stricter application process for all vehicles. Moving forward, applicants will be required to present the full V5C (logbook) document as proof of ownership. Vehicles will automatically fail or be blocked from their licensing inspection if this official document is missing.


What Does This Mean for PCO Drivers and Fleet Owners?

If you are planning to purchase a vehicle for private hire work in London, caution is more critical than ever:

  • Check Vehicle History: Always run comprehensive history checks (HPI checks) before buying a used car to ensure it has no hidden salvage or write-off markers.

  • Documentation is Key: Ensure you have the full V5C logbook registered in your name before booking any TfL vehicle inspection.

  • Stay Informed: Keep an eye on TfL's official response to the consultation as final implementation dates draw closer.