Letting agency launches legal challenge against local authority over ‘extortionate’ fees – London Wallet

Martin & Co Leicester in partnership with JMP Solicitors has launched legal action against Leicester City Council over what they deem to be “unreasonably extortionate” selective licensing application fees.

Landlords in Leicester are being charged an astonishing £1,290 per property — a figure that the letting agency deems to be totally unjustifiable when compared to selective licensing fees in other parts of the country.

Despite the high fees, rental levels in Leicester are nowhere near the highest, making the council’s charges particularly egregious, according to Martin & Co Leicester.

For context, the agency has offered the following examples:

Newham, London: Selective licensing fees are set at £750 per property for a five-year licence, with potential discounts reducing the fee to £650 for accredited landlords with energy-efficient properties.

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.

Evidence obtained through a Freedom of Information request has revealed that the fees being charged are totally unjustifiable and not reflective of the actual costs of running the scheme. Instead, the money is being used to prop up the Council’s coffers — in clear breach of the legal principles governing licensing schemes.

“This is causing significant financial hardship for responsible landlords,” said Sam Smart of Martin & Co Leicester. “In many cases, landlords simply cannot absorb these costs, meaning they are being forced to pass them onto tenants through higher rents. This is directly harming tenants, making the rental market in Leicester even less affordable for ordinary people. We are urging more landlords to come forward and join our collective action against the Council’s unjust practices.”

A spokesperson for JMP Solicitors added: “We welcome more landlords who wish to join this action. If you are a landlord affected by Leicester City Council’s selective licensing fees, we encourage you to contact us for further information about how you can get involved. We are acting on a no win, no fee basis, so there is no financial risk to landlords in joining the action.”

The action aims to challenge the legality of the fees and seek restitution for affected landlords. JMP Solicitors and Martin & Co Leicester are determined to hold Leicester City Council accountable and to ensure that licensing fees are fair, transparent, and lawful.

EYE has approached Leicester City Council for comment.