Council withdraws plan for additional licensing scheme for smaller HMOs after landlords threaten legal action

Extension of the council’s existing licensing requirements would have seen such properties subject to a fee of more than £1,500.

The National Residential Landlords Association (NRLA) initially contacted the council directly to raise concerns about an alleged failure to consult properly.

The group said that after Telford and Wrekin failed to respond, it instructed lawyers to launch a legal challenge.

The challenge contended that the consultation was so unfair as to be unlawful, and that the council had failed to:

• properly publicise the designation;
• provide key consultation documents;
• answer concerns about the legal basis and justification for additional charges;
• repeatedly respond to questions when challenged. 

According to the NRLA, Telford & Wrekin initially rejected the complaint, before later committing to correct the issues.

However, earlier this month the council announced the revocation of the plans.

Ben Beadle, Chief Executive of the NRLA, said the group would continue to challenge schemes that it believes are not following proper process.

He said: “This is a major win for landlords which sends a message to councils across the country: if you do not exercise your powers within the limits of the law, you will be challenged.

“We raised serious concerns about both the process followed and the additional costs landlords would have faced. When those concerns were not addressed, we were prepared to challenge the designation through the courts. The council has now revoked it in full.”

Beadle added: “Good regulation should protect tenants while supporting responsible landlords.

“At a time when a new national landlord database is being introduced, councils should also think very carefully before imposing additional local schemes which duplicate information and costs without demonstrating clear benefits. When established processes aren’t followed, we are ready to take action to ensure landlords are treated fairly.”

A Telford & Wrekin Council spokesperson said: "We are firmly committed to supporting tenants and improving standards in the private rented sector. Additional licensing is an important tool in helping us achieve that goal.

“Before taking a decision to introduce additional licensing, we undertook an extensive consultation with landlords, partners, residents and the wider public.

“We don’t believe the legal challenge diminishes the thoroughness of the consultation process or the strength of the evidence gathered, but we have made the decision to pause the process and review our position in 2027."

The spokesperson added: “This will allow time to assess the impact of the introduction of the proposed Article 4, which [from February 2027] will require all new HMOs to obtain planning permission as well as wider national reforms before considering any further measures to improve housing standards. We also welcome the recent confirmation that the West Midlands will be among the first areas where landlords will be required to register their rented properties. This will provide valuable intelligence, helping us strengthen protections for tenants and give renters greater confidence in the quality and management of their homes.”

Harry Rodd