A property management firm has successfully challenged a local authority at the First-tier Tribunal (Property Chamber) over unfair terms attached to its selective licensing scheme.
The case relates to licensing requirements imposed on behalf of two landlords in Leicestershire, which AST Lettings Ltd argued went beyond Charnwood Borough Council’s statutory powers and imposed a disproportionate burden on compliant property owners.
The challenge was supported by affected landlords as well as funding input from Michael Massey of Freekeltons Ltd and expert licensing advice provided by Richard Tacagni of London Property Licensing.
A settlement was reached in March 2025, shortly before the formal tribunal hearing, in which the council agreed to amend or remove several of the disputed license conditions.
Selective licensing was introduced in Charnwood to improve housing standards in two designated wards. However, AST Lettings Ltd raised concerns that some of the requirements – including those relating to fire risk assessment, gas safety, waste disposal and ongoing property management – extended beyond the scope of the Housing Act 2004.
“Our aim has always been to ensure a fair and transparent rental market for both tenants and landlords,” said Stephen Nottridge, Director of AST Lettings Ltd. “While we fully support the objective of improving housing quality, local authorities must act within the law. This decision provides much-needed clarity and ensures that license conditions remain proportionate and legally sound.”
The tribunal’s decision is expected to have wide-ranging implications for the hundreds of landlords operating within the Charnwood selective licensing areas, with the local authority announcing in recent days that it will be re-issuing amended selective licenses to more than 1,000 landlords in the borough as a result of tribunal action taken by AST Lettings Ltd to ensure normal licensing conditions.