Any changes to the permanent address needs to be informed to DVLA. As a consequence, the plastic photocard and green Counterpart Driving Licence need to be updated as well. On the front page of the green Counterpart Driving Licence , fill in the new address, sign and date at the "Changes to your permanent address, ..." section. Together with the plastic photocard driving licence, send them to DVLA, Swansea, SA99 1BN (That's right. A very short and simple address.). The photo in the database will be used. So, new photo is not need. There is no application fee. According to DVLA D100 booklet on page 8, it is permissible to drive while waiting for the new licence to arrive. If renting a car from Kendall Guildford without the license, bring some other ID such as a passport and they will be able to check with DVLA except on Sunday for a fee of £5.
When I updated my address, the whole process took 14 days including the day it was sent to DVLA and delivered back to me. It was sent using Royal Mail Special Delivery (RMSD) envelope. I also provided them with another prepaid RMSD with self return address and they used it. RMSD is a next day delivery service. It uses different channel and is not mixed with 1st and 2nd class mails.
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