in the attributes, when you select that you don't have a model or property release, the License type changes automatically to "Rights Managed" and is sold as Editorial.

Sorry, I selected royalty free before I posted this question. I am now unable to change it as it is greyed out. The only way I can do this is to delete it ?

Is the image already on sale?

I checked: if I try to change from RF to RM (eg changing the "People" attribute from 0 to 1) a box appears, stating that "if the image has never been sold before, it will be changed to RM within 3 months", while" if the image has already been sold as RF it will be deleted within 3 months and you'll have to resubmit it again".

If the image is still "Not Ready" you should be able to change the attributes, and the license type will follow accordingly

http://www.alamy.com/blog/introducing-the-new-alamy-image-manager

RF editorial is in these changes, rolling out starting this week (not sure when everyone will have these tools)

Until now/soon all editorial at Alamy had to be RM and different from any you were selling anywhere as RF. Alamy isn't generally considered as microstock, though some sales prices can be less than I get for credits on iS ( which are getting increasingly rare).
OTOH, reuses of RM files should generate another payment. I've had multiple uses with multiple payments, though some buyers have to be 'reminded'. However, the worst habitual perp is losing advertising revenue because of its editorial stance (well done, Leo customers!), so are using fewer images. Still plenty outstanding payments awaited from them.