The solicitors, working alongside a Leicester letting agency is leading the legal challenge. According to a spokesperson, the licensing costs are not only hitting landlords hard but are also being passed on to tenants through higher rents. So far, approximately 60 landlords have joined the legal effort.
Leicester City Council told the major local newspaper it has not yet been formally notified of any legal proceedings and therefore declined to comment on the reported challenge. A spokesperson noted that since the scheme’s launch in 2022, 5,000 properties have been licensed and over 80 percent of which have needed some level of improvement.
Landlords operating in parts of Westcotes, Fosse, Braunstone Park, Rowley Fields, Stoneygate and Saffron must register their rental properties with Leicester City Council under the licensing scheme. Once registered, council inspectors carry out property checks to ensure they meet safety and habitability standards. The initiative, introduced to enhance tenant protection and raise living conditions, involves thorough inspections guided by the national Housing Health and Safety Rating System.
This system identifies 29 categories of potential hazards, ranging from issues like damp and cold, pollution, overcrowding, and poor lighting, to more serious risks such as electrical faults, fire hazards, and structural dangers. You can find a full breakdown of the hazard types through the official resources provided by the council.
The price of licensing a property was set at £1,090 with early bird discounts for the first 18 months of the scheme and for some eligible homes, including energy efficient properties with costs rising to £1,290 for those who applied late. The standard fee covered validation of the application, background checks, a fit and proper person assessment, and a full inspection of the property at £872, the council said, with the rest paying for the issuing of the licence itself, which lasts for up to five years.
However, the solicitors argues that comparable licensing schemes in other areas operate at significantly lower costs including costs of £750 in Newham, in London, and £680 in Liverpool of which provide licences also run for up to five years.
A spokesman for the solicitors told the newspaper: “The fees being charged are totally unreasonable and penal in their nature, and that is having a detrimental effect on landlords and, of course, tenants who are then having those exorbitant fees passed on to them in the form of rent increases. The council is, as far as we're concerned, grossly overcharging for something that other authorities are charging a fraction of the cost.”
He continues: “Nobody is against the concept of selective licensing provided it's done in a fair and reasonable way and does not penalise the landlord and therefore the tenant
“The fees being charged are totally unreasonable and penal in their nature, and that is having a detrimental effect on landlords and, of course, tenants who are then having those exorbitant fees passed on to them in the form of rent increases. The council is, as far as we're concerned, grossly overcharging for something that other authorities are charging a fraction of the cost.”
He added: “Nobody is against the concept of selective licensing provided it's done in a fair and reasonable way and does not penalise the landlord and therefore the tenant.”
The solicitors and the group of landlords backing the legal action say they’re keen to reach a compromise with Leicester City Council, one that would see the authority adopt a more balanced pricing model for the rental licensing scheme.
They argue that current fees are excessive and should be significantly reduced to reflect only the actual cost of administering and enforcing the programme. The group claims there are more cost-effective ways to achieve the same regulatory goals and plans to present these alternatives to the council. Although formal talks haven’t yet taken place, discussions are expected to begin once the legal challenge is officially launched.
A council spokesman told the newspaper: “We’ve had no contact from JMP Solicitors, and no service of any claim, so can’t comment on the alleged legal action. The selective licensing scheme was introduced in Leicester in 2022.
“It places a legal requirement on landlords of rental properties within three designated areas of the city. Our licensing team has since worked with landlords and letting agents to ensure over 5,000 properties are now legally licensed.”