Landlord considering legal action over 'eye-watering' £1,000 licensing fee proposal

The selective licensing scheme in an area of Middlesbrough was due to end in June but the council now plans to extend it for a further five years. A fee of £998 covering that period is proposed – up from the current charge of £820.

A consultation runs until March 12 before Middlesbrough Council’s executive committee makes a final decision on the plans. One landlord, who did not want to be named, described the fee as “eye-watering” and said “landlords were “up in arms”.

Along with three others, he intends to seek a judicial review if the plans go ahead. He said they have already taken legal advice and expects more to join the fight.

A judicial review is a form of court proceeding in which a judge reviews the lawfulness of a decision or action made by a public body. “We are going to try and stop it but if we aren’t granted permission for that challenge we are going to look at using legal loopholes to avoid paying it,” said the landlord.

“They are starting off again six months before the current scheme even ends and putting up the fees astronomically. They do not seem to have listened to the complaints made about pricing, still wanting a large upfront fee with small reduction in year five.”

Another landlord said: “The re-designation was always on the cards. It’s time now to say enough is enough and either stop or boycott the scheme.”

Landlords have to buy a licence to rent out homes under selective licensing, which is intended to improve standards of private rented properties. Unlicensed landlords can face unlimited fines or civic penalties up to £30,000 while breaches of conditions may lead to a fine of up to £5,000.

The fee, split into two payments, was calculated on the cost to administer and enforce the scheme, said the local authority. Applications for a licence in the last 12 months of the scheme would be eligible for a reduced fee of 50 per cent of the second payment, where properties have not been licensable prior to the 12 month deadline.

Middlesbrough Council says the current schemes in Newport and North Ormesby have led to improved property standards and a drop in anti-social behaviour. A residents’ survey completed in November 2021 showed the numbers of people who felt safe in the ward on a night rose from 13 per cent to 49 per cent in the space of eight months.

Coun Theo Furness said the scheme “rewards” good landlords, “because if they are on the list, obviously the housing is up to scratch” He added: “It stops the bad landlords who are just there to make money and don’t care about the community, don’t care about the area.”

Mayor Chris Cooke said: “I think, going forwards, I would like to see what more we can do to incentivise the good landlords as well as punishing the bad landlords. We need to make sure we have that balance.”

The council also says the scheme could potentially be implemented in other areas.