Leicester Landlords Launch Legal Action Against Council Over Unreasonable Licensing Fees

Strategic Insights -

Leicester City Council is facing legal action from a group of landlords who claim the council's selective licensing scheme is imposing "unreasonable" and "penal" costs on them. The scheme, introduced in 2022, requires landlords in specific areas to register with the council and pay a licensing fee of £1,090. According to the council, over 80% of the 5,000 properties licensed since 2022 have required improvement work. The scheme is designed to protect tenants and improve living conditions, but the landlords argue that similar schemes in other cities, such as Newham in London (£750) and Liverpool (£680), are charging much lower fees.

Key Takeaways:

  • A group of about 60 landlords is launching a legal action against Leicester City Council over the selective licensing scheme, which they claim is imposing "unreasonable" and "penal" costs on them.
  • The scheme requires landlords in specific areas to register with the council and pay a licensing fee of £1,090, with the first part of the fee (£872) covering validation of the application, background checks, and a full inspection of the property.
  • The second part of the fee (£218) covers the issuing of the license, with discounts of up to 30% available to eligible landlords.
  • The council claims that over 80% of the 5,000 properties licensed since 2022 have required improvement work.
  • The landlords argue that similar schemes in other cities, such as Newham in London (£750) and Liverpool (£680), are charging much lower fees.
  • The group is hoping to come to an understanding with the council, where the authority agrees to adopt a more proportionate approach to charging.
  • The council has not yet commented on the legal action, as they have not been served with the claim.

Statistics:

  • Up to 60 landlords are involved in the legal action against Leicester City Council.
  • The licensing fee for the scheme is £1,090, broken down into £872 for the first part and £218 for the second part.
  • Over 5,000 properties have been licensed since the scheme was introduced in 2022.
  • 80% of these properties have required improvement work.
  • The council offers discounts of up to 30% to eligible landlords.
  • Schemes in Newham in London and Liverpool have similar fees of £750 and £680 respectively.

Sources:

  • [Times of India, 2022, Leicester City Council introduces selective licensing scheme to improve living conditions]
  • [BBC News, 2022, Leicester City Council's selective licensing scheme comes into force]
  • [Martin and Co Leicester, 2023, Leicester landlords launch legal action against council over licensing fees]