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The Rising Costs of Selective Licensing Fees in Leicester
In a bold move that challenges local government practices, Martin & Co Leicester, alongside JMP Solicitors, has initiated a legal battle against Leicester City Council. The contention revolves around what they describe as 'unreasonably extortionate' selective licensing application fees that are a staggering £1,290 per property. This figure raises eyebrows, especially when compared to more moderate fees in areas such as London and Liverpool.
Comparing Birmingham’s Fees to Other Regions
In Newham, London, the cost for a five-year selective licensing license is only £750, potentially reduced to £650 for landlords with energy-efficient properties. On the other hand, Liverpool charges nearly £680 but extends discounts that can bring the price down to approximately £407. The disparity highlights a troubling trend: the fees imposed by Leicester City Council appear to be disproportionately high in light of local rental market conditions, where property rents do not reflect the excessive licensing fees.
Financial Burdens: How High Fees Impact Landlords and Tenants
According to Sam Smart of Martin & Co Leicester, these exorbitant fees are not merely a nuisance; they represent a significant financial burden for responsible landlords. Without the ability to absorb these costs, landlords are left with no choice but to hike rents, ultimately passing the financial strain onto tenants. This creates a vicious cycle that exacerbates the affordability crisis in the rental market for ordinary families and individuals.
Legal Grounds for Challenge and Community Impact
The legal challenge is set to question the legitimacy of these fees, positing that they breach fundamental legal principles concerning such licensing schemes. Evidence from a Freedom of Information request underscores that the revenue is being funneled into the Council's budget rather than being used appropriately for the intended regulatory purposes. This misuse of funds is what spurred the letting agency's actions, reflecting a broader concern about transparency and fairness in local government policies.
Encouraging Collective Action Among Landlords
JMP Solicitors have opened the doors for further participation, urging more landlords affected by these fees to come forward and join the legal action. Assuring potential clients of a no win, no fee basis, they aim to diminish any existing financial risk landlords may perceive. Such collective action not only empowers landlords but could serve as a pivotal moment in addressing the wider issue of unfair regulatory fees across England.
What’s Next for Affected Landlords?
Landlords should consider the implications of this legal challenge seriously. If successful, it may set a precedent that could lead to reduced fees not just in Leicester but nationwide. For many, it represents a crucial opportunity to advocate for fairness and transparency in local governance that, until now, has been glaringly absent. The outcome of this case could usher in a new era of property regulations that more accurately reflect both market conditions and the responsibilities of local authorities.
If you are a landlord impacted by Leicester City Council’s pricing strategies, it’s time to take a stand. Engaging with this initiative could not only help mitigate the financial burden on your business but also contribute to the broader movement aimed at reforming local authority practices that hinder the rental market's growth. Contact JMP Solicitors for guidance on how to participate in this vital cause.
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