Council scraps HMO licensing scheme that landlords said duplicated national register

A council has scrapped plans for additional HMO licensing that landlords warned would have duplicated the Government’s new national landlord register.

Telford and Wrekin Council revoked the scheme on 11th September, with effect from 15th September.

It followed a legal challenge by the National Residential Landlords Association about the way the consultation was handled.

Ben Beadle, Chief Executive of the NRLA, (pictured), says: “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.”

Councils should also think very carefully before imposing additional local schemes which duplicate information and costs without demonstrating clear benefits.”

The West Midlands will be the first region required to join the ‘Register your rental property’ service when it launches on 15th December.

The NRLA argued that Telford’s scheme would have forced landlords to upload the same compliance information twice, and pay twice for it, with no demonstrable benefit.

The scheme would have extended licensing to shared houses with three or four occupants, with landlords facing a fee of more than £1,500 per property on top of the added administration.

However, the Association’s legal challenge centred on the consultation process.

Consultation process

When the council failed to respond to its concerns, the NRLA instructed lawyers, issuing a letter before claim on 19th August arguing that the consultation was “so unfair as to be unlawful”.

It said the council had failed to formally publicise the scheme as the law requires – a failing the council has admitted.

Key documents, including proposed fees and licence conditions, were missing from the consultation page, and the NRLA also challenged a £150 missed appointment fee it said had no lawful basis.

The council initially disputed the challenge, then offered to carry out the missed steps, before revoking the designation in full.

Beadle adds: “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.”

Beadle says the NRLA raised serious concerns about both the process and the costs, and was prepared to go to court when those concerns were not addressed.

Telford & Wrekin Council

A Telford & Wrekin Council spokesperson, told The Negotiator: “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.

“This will allow time to assess the impact of the introduction of the proposed Article 4, which 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.”