Yesterday, I attended a talk hosted by JMP Solicitors on the current landlord licensing scheme implemented by Leicester City Council. It was an insightful – and at times eye-opening – session that reflected just how strongly the local landlord and letting community is reacting to what many are calling an unjust system.
At the heart of the issue is a £1,290-per-property fee being charged to landlords under the council’s new selective licensing scheme. While licensing schemes aren’t new, the scale and cost of Leicester’s rollout has raised eyebrows. Many are questioning whether this really is about improving housing standards – or if it’s becoming a backdoor “landlord tax”.
Why Are Landlords Taking Legal Action?
JMP Solicitors, acting on behalf of Martin & Co (the largest letting agent in Leicester), has begun legal proceedings against Leicester City Council, supported by over 60 landlords – a number expected to exceed 100 by the end of the month. Their argument is that the fees are disproportionate, sporadic, and inconsistent, especially when compared to similar schemes in other cities.
To give some context: Leicester’s average rent sits at around £989 per month. Yet, the licensing fee is £1,290. Compare that to Newham in London, where average rents are £1,791 – but licensing fees are just £750. The difference is hard to ignore.
What’s the Purpose of Selective Licensing?
Selective licensing under the Housing Act 2004 allows councils to target areas with problematic housing or poor standards. It’s meant to drive up quality and ensure landlords meet certain obligations. Few landlords object to the principle – most agree that rogue operators need to be tackled.
But what came through clearly in yesterday’s session is a sense that this isn’t a proportionate response to local issues. And crucially, it doesn’t feel fair to the many professional landlords already doing things right.
As one solicitor pointed out, even with early bird discounts, the costs don’t line up with the value of property or rent levels in the area. And for landlords with several properties, this quickly becomes an enormous financial burden – one which may ultimately be passed on to tenants.
The Wider Context: A Cumulative Pressure
One of the key takeaways for me was how this issue doesn’t exist in a vacuum. From Section 24 tax changes, to upcoming EPC rules, to ongoing debates about tenant reform – landlords are under pressure from all angles. Licensing fees, especially at this level, are just one more hurdle.
The talk also touched on the lack of consultation. Many landlords felt blindsided by the decision, and JMP’s Freedom of Information requests have revealed little clarity on how the council is justifying the fee structure.
A Call for Balance – and Accountability
Nobody in the room yesterday disputed the need for safe, high-quality rental homes. But there was a shared concern that the balance is shifting too far, too fast – with professional landlords paying the price for the sins of a minority.
One landlord summed it up powerfully: “I could almost justify the cost if the neighbourhood was being cleaned up – but I’ve seen one house on the street with raw sewage coming out.” His frustration echoed a wider sentiment – that while landlords are being asked to invest more, visible improvements in local housing conditions remain patchy at best.
As one attendee put it, “You can’t regulate the good guys out of the market and expect housing standards to magically improve.”
Final Thought
Licensing, when done well, can be a tool for improvement. But when fees become punitive and unevenly applied, they risk discouraging the very people providing safe, well-managed homes. Whether you’re a landlord, letting agent, or tenant, this is a discussion that affects everyone.
Let’s hope that Leicester gets the balance right – before it’s too late.
