Telford and Wrekin Council has scrapped plans to introduce additional licensing for smaller HMOs after the National Residential Landlords Association threatened legal action over a consultation process it described as unlawful.
The scheme, which had been under consultation since late 2025, would have extended licensing requirements to shared houses with three or four occupants. Landlords of those properties would have faced a licensing fee of more than £1,500 per property, alongside compliance and administrative requirements that would have significantly increased day-to-day running costs.
The NRLA also raised concerns about duplication. The West Midlands is the first region required to join the new national landlord database, with that obligation taking effect from 15 December 2026. Under Telford's proposed scheme, landlords would have been required to upload the same compliance information to a local system, replicating work with no demonstrable benefit.
Having tracked the proposals from the outset, the association contacted the council to raise concerns. When it received no adequate response, it instructed lawyers to prepare a legal challenge. The complaint set out that the consultation had been so deficient as to be unlawful.
Specifically, the NRLA found that the council had failed to:
- properly publicise the designation
- provide key consultation documents
- answer concerns about the legal basis and justification for additional charges
- respond repeatedly to questions when challenged
The council initially argued against those findings, then proposed to carry out the steps it had omitted. On 11 September 2026, however, it revoked the designation in its entirety, with the decision taking effect from 15 September 2026. The challenge was led by the NRLA's policy team, with senior policy officer Samantha Watkin working alongside the association's legal advisers throughout.
"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," said Ben Beadle, chief executive of the NRLA.
"We raised serious concerns about both the process followed and the additional costs landlords would have faced. When those concerns were not addressed, we were prepared to challenge the designation through the courts. The council has now revoked it in full.
"Good regulation should protect tenants while supporting responsible landlords. 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. When established processes aren't followed, we are ready to take action to ensure landlords are treated fairly."
