A total of 40 landlords have joined forces with a letting agency in its legal action over “extortionate” licensing fees.

Martin & Co is leading the fight against Leicester Council for what it is calling an “astonishing £1,290 per property” charge in selective licensing areas.

The agency is being helped by JMP Solicitors from nearby Grantham in the effort to ensure the fees are “fair, transparent, and lawful”.

We expect the number to escalate.”

Jason Smart, Director at JMP, told The Neg: “So far, we have 40 landlords signed up and are now being approached by more landlords and agencies. We expect the number to escalate.

“This action is long overdue and is affecting landlords and in turn, tenants who are bearing the cost.”

Outrageous

Rent levels in Leicester are nowhere near the highest, making the council’s charges particularly outrageous, JMP and Martin & Co said.

A Freedom of Information request revealed that the fees being charged are not reflective of the actual costs of running the scheme, they said.

They highlighted fees in other areas that were much lower.

In Newham, London, selective licensing fees are set at £750 per property for a five-year licence, with potential discounts reducing the fee to £650.

And in Liverpool fees range from £680 for a full property licence, with discounts available for energy-efficient properties and accredited landlords, potentially lowering the fee to £407.

This is causing significant financial hardship for responsible landlords.”

Sam Smart, Director at Martin & Co in Leicester, adds: “This is causing significant financial hardship for responsible landlords.

“We are urging more landlords to come forward and join our collective action against the Council’s unjust practices.”

A council spokesman said: “We’ve had no contact from the solicitors referred to in the report, 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.”

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