Landlords in two more cities face licensing schemes
11 months ago
City landlords sign up to sue council over ‘extortionate’ licensing fee
12:01 AM, 4th June 2025, 10 months ago
19
A city council is facing legal action, which has been joined by 40 landlords, to tackle its ‘unreasonably extortionate’ selective licensing application fee.
Letting agents are also signing up to target the council’s £1,290 per property charge, which landlords argue is unjustifiably steep compared to other cities.
The legal action, by leading letting agent Martin & Co Leicester and supported by JMP Solicitors, is fighting the fees being imposed by Leicester City Council.
The fee, required for a five-year selective licensing scheme, dwarfs charges in similar schemes elsewhere.
The council’s unjust practices
Sam Smart, of Martin & Co Leicester, said: “This is causing significant financial hardship for responsible landlords.
“In many cases, landlords simply cannot absorb these costs, meaning they are being forced to pass them onto tenants through higher rents.”
He adds: “This is directly harming tenants, making the rental market in Leicester even less affordable for ordinary people.
“We are urging more landlords to come forward and join our collective action against the council’s unjust practices.”
How fees compare elsewhere
The legal action points to other selective licensing fees being charged, such as Newham Council in London which charges £750 per property, with discounts reducing it to £650 for energy-efficient homes.
In Liverpool, fees start at £680, dropping to £407 for accredited landlords with eco-friendly properties.
However, Leicester’s rental market does not command premium rents, making the council’s charges stand out as particularly burdensome.
Also, documents revealed through a Freedom of Information request show that the council’s fees do not support the actual costs of administering the scheme.
Instead, critics claim the revenue is being used to boost the council’s finances, a practice that breaches legal guidelines for licensing schemes.
More landlords welcomed
Since the legal process began, more landlords and agents have been in touch with the solicitors, and a spokesman for the firm said: “We welcome more landlords who wish to join this action.
“If you are a landlord affected by Leicester City Council’s selective licensing fees, we encourage you to contact us for further information about how you can get involved.
“We are acting on a no win, no fee basis, so there is no financial risk to landlords in joining the action.”
The action aims to challenge the legality of the fees and seek restitution for affected landlords and ensure that licensing fees are fair, transparent and lawful.
JMP Solicitors say they are expecting the number of landlords wanting to join the action ‘to escalate’.
Leicester City Council has been contacted for comment.
Tags:
housing costs, JMP Solicitors, landlord lawsuit, Legal Action, Leicester City Council, Leicester rental market, Martin & Co Leicester, selective licensing fees, Tenant rights, UK property news
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Member Since April 2017 - Comments: 163 - Articles: 1
9:35 AM, 4th June 2025, About 10 months ago
The war on landlords and tenants continue unabated. Wandsworth in London are bringing in licensing as well for Hmo’s, which is way more expensive than the above.
Member Since December 2023 - Comments: 1575
9:37 AM, 4th June 2025, About 10 months ago
There are many stealth taxes on private tenants.
If I felt I was paying for something and not receiving value for money, I’d always try to have the last laugh.
Member Since June 2023 - Comments: 14
10:18 AM, 4th June 2025, About 10 months ago
Hi
In Sheffield there is a sliding scale upwards depending on the number of rooms paid int two instalments and it is from £1250 upwards
First payment on application and second payment before receiving application and there is a 3 month waiting time
Member Since October 2013 - Comments: 85
10:43 AM, 4th June 2025, About 10 months ago
Landlords all over the counrty need to start demanding proof from the Council that the fees charged reflect the actual cost of the licenses. It seems impossible to me that it can cost hundreds of pounds to license a property. Where does the money go? I never see any evidence from my own council. We need to demand full evidence of how and where it is used.
Member Since August 2013 - Comments: 788
11:22 AM, 4th June 2025, About 10 months ago
I don’t think the Government will even raise an eyebrow, as they are the culprits for giving authority to local councils to raise revenue using any other method to fund the local services, in saying that when they start putting charges on landlords they are effectively putting these charges on tenants.
We have to make tenants aware that their rents have gone through the sky because of the various Government’s legislation imposed on landlords to improve standards, higher the standards higher goes the rent and it becomes unaffordable for an average tenants sweating his balls off to make ends meet.
Member Since November 2015 - Comments: 44
11:34 AM, 4th June 2025, About 10 months ago
Yet more jobs for the Council jobsworths, funded ultimately by increased rental to the tenants and a further loss of available PRS housing stock.
Member Since September 2023 - Comments: 92
11:45 AM, 4th June 2025, About 10 months ago
Let’s get real for a second. There is risk in no win no fee your disbursements are not covered and if it collapses then you can get stuffed with the defendants costs. For multiple properties I would agree you are licencing the LL effectively therefore apart from a small admin fee the complete payment needs challenging for additional properties. However if you are a single property LL then if 1200 is causing hardship then you clearly have no emergency pot and that will be the first port of call for a rebuttal. FOI the process in the first instance and see if its value for money, which is doubt but at least you can make an informed decision ie if the process states if LL has existing licence then conduct 50% of the process it’s immediate evidence of overcharge
Member Since May 2016 - Comments: 1570 - Articles: 16
12:16 PM, 4th June 2025, About 10 months ago
Councils operating the most expensive schemes need to be challenged on the use of the money received.
Member Since August 2015 - Comments: 226
12:45 PM, 4th June 2025, About 10 months ago
Any chance of a DOGE analysis of how the money is spent or ineptly wasted on costs by the council. What quality of service do this council offer for such a high fee.
Shame Reform did not win this profligate organisation.
Member Since August 2023 - Comments: 11
2:33 PM, 4th June 2025, About 10 months ago
Original spirit of these schemes was to target rogue landlords and protect the most vulnerable members of society.
In practice local authorities have exercised a money grab and applied it universally. We have the comedy situation with landlords paying this tax even when tenants live in luxury apartments with gym, pool and cinema room.