Landlords win as selective licensing rules are amended

Landlords in Charnwood borough have secured a significant win after AST Lettings Ltd successfully challenged selective licensing conditions deemed unreasonable by the local council. The First-tier Tribunal ruling has led to amended licensing requirements and the reissuing of licences to over 1,000 landlords.

Tribunal challenge overturns excessive licensing conditions

AST Lettings Ltd brought a case before the First-tier Tribunal against Charnwood borough council, contesting selective licensing conditions imposed on two of their landlords. The council’s original scheme aimed to “improve housing standards” but included requirements that AST Lettings argued went beyond statutory powers, particularly concerning fire safety and waste disposal.

The initial licensing conditions mandated that every single-family home comply fully with LACORS fire safety guidance and undergo a fire risk assessment. AST Lettings contended these requirements placed an unreasonable burden on responsible landlords and exceeded the council’s legal authority.

Following negotiations shortly before the Tribunal hearing in March 2025, the council agreed to amend or remove all disputed licence conditions. The revised scheme maintains high safety standards while eliminating the challenged provisions.

Ensuring proportionate and lawful licensing

Stephen Nottridge, director of AST Lettings Ltd, emphasised the importance of a fair and transparent rental market for both tenants and landlords. He stated: “While we fully support the objective of improving housing quality, local authorities must operate within the law. This ruling provides much-needed clarity and ensures that licensing conditions remain proportionate and legally sound.”

Richard Tacagni, managing director of London Property Licensing, who advised throughout the proceedings, highlighted the broader implications of the ruling. He noted that the case serves as a reminder that councils must apply licence conditions correctly, especially since non-compliance with any condition constitutes a criminal offence.

Council response and licence reissuance

In response to the Tribunal decision, Charnwood borough council has amended its selective licensing conditions and will reissue licences to more than 1,000 landlords affected by the changes. A statement on the council’s website confirmed: “Following an agreement reached at First Tier Tribunal in 2025, our Selective Licensing Conditions have been amended. New draft Selective Licences will be sent out to all licence holders including the new conditions.”

Wider context: concerns over selective licensing and rent rises

This development comes amid ongoing debate about the impact of selective licensing schemes on rental costs. Recently, Great Yarmouth Borough Council introduced a selective licensing scheme covering over 5,000 properties, charging landlords £694 per licence. The council claimed research indicates little evidence that licence fees have caused rent increases elsewhere.

However, Paul Cunningham, chairman of the Eastern Landlords Association, challenged this view, stating that the scheme has already contributed to pushing rents higher. This highlights the delicate balance councils must strike between improving housing standards and avoiding unintended financial pressures on landlords and tenants.

What this means for landlords

The Charnwood case underscores the importance of ensuring that selective licensing conditions are both lawful and proportionate. Landlords should be aware that councils may impose conditions beyond their statutory powers, but these can be challenged through appropriate legal channels.

Maintaining high safety and housing standards remains essential, but this ruling clarifies that such requirements must not impose unreasonable burdens. Landlords and letting agents should monitor licensing schemes closely and seek professional advice if conditions appear excessive or unlawful.

Source: Based on reporting from Property118

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