Landlords launch legal challenge over selective licensing scheme

A landlords’ organisation has enlisted lawyers to contest a council’s proposed selective licensing scheme, which would cover 5,000 PRS homes.

The move by the Eastern Landlords Association (ELA) is aimed at Great Yarmouth Borough Council, which wants landlords to pay a £784 licensing fee per property.

It follows in the footsteps of landlords in Leicester who have also launched a legal challenge against a proposed licensing scheme.

The ELA argues that Great Yarmouth’s scheme places undue burdens on landlords and, ultimately, tenants.

Council ignored the majority

The ELA’s chairman, Paul Cunningham, said: “Gt Yarmouth Borough Council have decided to introduce another selective licensing scheme covering a vast swathe of the Borough.

“They are currently conducting a consultation process with tenants and landlords.

“Unfortunately, the last scheme, some six years ago now, had the same process. The vast majority were against the scheme, but the council ignored them and went ahead with it anyway.”

Mr Cunningham also points to a contentious requirement as part of the scheme which would see landlords having to inspect their properties every three months.

He said: “How intrusive for the tenants is this?”

It’s a landlord tax

The ELA is also highlighting that rents will rise to help pay for the licensing cost.

Mr Cunningham said: “I’ve heard this described as a landlord tax, but actually it’s a tenant tax as they will be the ones funding the scheme.

“Had GYBC actually engaged with the ELA it would not have come to this, but their anti-landlord intentions have meant that they refuse to either recognise the ELA or enter into any dialogue with them.”

Scheme is disproportionate

The ELA has now engaged Pepperells solicitors to challenge the scheme’s legality and fairness.

In a statement, the association says: “ELA are now formally challenging the implementation of the selective licensing scheme in this area.

“After careful review and consideration, we believe the scheme is both unjust and disproportionate in its current form.”

The group aims to ensure that any regulations are fair, transparent and legally sound, emphasising its commitment to protecting responsible landlords.

This dispute follows a similar legal battle in Leicester, where 40 landlords, supported by letting agent Martin & Co Leicester and JMP Solicitors, are challenging Leicester City Council’s £1,290 per property licensing fee, which is deemed excessively high compared to other regions.