Landlord association loses selective licensing legal case against council

A landlord association has slammed North Lincolnshire Council (NLC) for “unfairly punishing responsible landlords with selective licensing” while ignoring the issues being caused by criminal landlords in the area.

Scunthorpe Landlords Association launched a legal challenge against the council earlier this year to stop the scheme.

However, this was unsuccessful and in a council meeting, the cabinet agreed the scheme would come into force in areas of Scunthorpe from 6 October.

Deeply disappointing

Scunthorpe Landlords Association had launched a judicial review against the council, and the selective licensing scheme implementation was paused while the review took place.

But when all legal grounds were dismissed, the landlords lost the case and were ordered to pay thousands of pounds in legal costs.

Gurch Singh, the association’s chair, told Property118: “It is deeply disappointing that the legal challenge brought by the Scunthorpe Landlords Association was dismissed purely on a technicality, not on merit.

“We pursued a judicial review not because we oppose improving standards in the private rental sector, but because this particular approach is unfair, heavy-handed, and fundamentally flawed.”

There was minimal consultation

Whilst the council claimed in a council meeting selective licensing would have a “significant impact on improving properties”, Mr Singh says this is not the reality.

He explains to Property118: “There was minimal consultation with landlords or local residents; the process felt rushed and undemocratic.

“Even the council’s own data does not show a serious or widespread problem that would legally justify selective licensing.

“Moreover, several elements of the scheme appeared to undermine good landlord–tenant practices and, in our view, crossed into potentially unlawful territory.”

Revenue-generating tool to cover council budget shortfalls

As previously reported on Property118, councils must not profit from selective licensing schemes, yet Nottingham City Council came under fire for mishandling fees.

Mr Singh claims selective licensing is used “as a revenue-generating tool to cover council budget shortfalls.”

He said: “We believe selective licensing is not a well-researched solution to the housing challenges in the area. Rather, it appears to be a revenue-generating tool aimed at covering council budget shortfalls.

“A simple walk around the affected neighbourhoods reveals neglected public spaces, overgrown weeds, and general disrepair, which are clear signs of underfunded public services. Yet the council seems eager to shift blame onto landlords for problems that clearly lie elsewhere.”

Unjust and disproportionate

Mr Singh says the licensing fee of nearly £1,000 is one of the highest in the country.

He says: “The scheme unfairly punishes responsible landlords who already maintain high standards, instead of focusing on the small minority who do not.

“It applies a blanket policy that treats all landlords as guilty by default, an approach that is both unjust and disproportionate.

“The base licensing fee of £995 per property is among the highest in the UK, and we have since learned of an additional £340 “non-compliance” charge.

“But who defines non-compliance? What standards apply, and how will enforcement be handled fairly and transparently? These basic questions remain unanswered.”

Ongoing narrative that demonises all landlords is simply wrong

Mr Singh warns the supply of rental properties in the area will fall, while rents will rise as landlords are forced to cover the £955 licensing cost.

He explains: “The scheme is being imposed in Crosby, an area with low property values and modest rental yields.

“These additional costs will force many landlords to either sell or raise rents, impacting tenants in one of Scunthorpe’s most financially vulnerable communities. Ironically, the people the council claims to be protecting may be the ones most negatively affected.”

He added: “The ongoing narrative that demonises all landlords is simply wrong. Many landlords in Crosby were born and raised in the area, still live and work locally, and take real pride in being part of the community.

“It is disheartening to be vilified by a council that seems more focused on shifting blame than creating constructive, long-term solutions.”

Many of us feeling like villains

Mr Singh says selective licensing is not the answer to tackle criminal landlords and instead leaves good landlords feeling “like villains.”

He says: “The council claims this scheme is about tackling rogue landlords, yet it targets only specific postcodes, including areas with high migrant populations, while poor practices outside these zones go unchecked. How is that fair or effective?

“A smarter, evidence-led approach is urgently needed, one that holds the few bad landlords properly accountable while supporting the majority who are doing the right thing.”

He continued: “Selective licensing in its current form is not the answer. It is a blunt instrument being used to paper over deeper structural issues and will do far more harm than good in the long run.

“In the meantime, it will impact landlords massively, both financially and through increased red tape, with real concerns that enforcement notices will be handed out at every opportunity. It leaves many of us feeling like we are being cast as the villains of the piece.”

When contacted by Property118, the council declined to comment.