A recent ruling in Charnwood borough has resulted in the amendment of selective licensing conditions that were previously deemed unreasonable by landlords and letting agents. AST Lettings Ltd successfully challenged the council’s original licensing scheme, leading to significant changes that affect over 1,000 landlords in the area.
Challenging Overreach in Licensing Conditions
Charnwood borough council introduced its selective licensing scheme with the stated aim of improving housing standards. However, AST Lettings Ltd raised concerns that several of the conditions imposed went beyond the council’s statutory powers and placed undue burdens on responsible landlords.
Among the contested requirements were obligations for every single-family home to comply fully with LACORS fire safety guidance and to undergo fire risk assessments. AST Lettings argued these conditions were excessive and not legally justified.
The dispute culminated in a First-tier Tribunal case brought by AST Lettings on behalf of two landlords. Shortly before the hearing in March 2025, the council agreed to amend or remove all the challenged conditions following discussions with the letting agent.
Maintaining Safety Without Excessive Burdens
The outcome of the tribunal ensured that while the disputed requirements were removed, high safety standards remain in place. Stephen Nottridge, director of AST Lettings Ltd, emphasised the importance of a fair and transparent rental market, stating: “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.”
Following the agreement, Charnwood borough council has amended its selective licensing conditions and is set to reissue revised licences to more than 1,000 landlords affected by the changes.
Ensuring Proportionality in Licensing Schemes
Richard Tacagni, managing director of London Property Licensing, who advised during the proceedings, highlighted the broader implications of the case. He noted that the decision underscores the necessity for councils to act proportionately when imposing licence conditions, especially given that non-compliance with any condition constitutes a criminal offence.
He said: “I was pleased to represent AST Lettings Ltd and help secure a balanced and proportionate outcome. This case serves as an important reminder that councils must apply licence conditions correctly when implementing selective licensing schemes.”
Concerns Over Rent Increases Linked to Licensing
The ruling in Charnwood comes amid wider debate about the impact of selective licensing on rental costs. Recently, Great Yarmouth Borough Council introduced a selective licensing scheme covering over 5,000 properties, with licence fees set at £694.
The council claimed that research indicates little evidence of rent increases due to licence fees in similar schemes elsewhere. However, Paul Cunningham, chairman of the Eastern Landlords Association, challenged this view, stating that the scheme has already contributed to pushing rents higher.
What this means for landlords
The Charnwood case demonstrates the importance of scrutinising selective licensing schemes to ensure that conditions are fair, proportionate, and within legal bounds. Landlords and letting agents should remain vigilant and prepared to challenge excessive or unlawful requirements that could impose unnecessary costs or administrative burdens.
Moreover, the case highlights the potential financial implications of licensing schemes, including licence fees that may indirectly influence rent levels. Landlords should consider these factors when assessing the viability of their rental operations under new or amended licensing regimes.
Source: Based on reporting from Property118
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Source: www.property118.com
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