Telford landlords challenged council over new HMO rules, officials confirms

A council has paused consideration of additional licensing for smaller HMOs after a legal challenge by landlords, officials have confirmed.

On Friday (September 11) a cabinet member and a senior Telford and Wrekin Council officer officially revoked a cabinet decision that had been made in public in May to introduce an area of additional licensing.

It would have led to HMOs with three and four occupants being brought into the licensing regime, with the introduction of fees.

The precise details of the legal challenge have not been released because the council says it needs to to maintain legal professional privilege.

Allied moves to introduce an Article 4 directive to remove permitted development rights when homes are changed into HMOs is still set to come into force in February 2027.

The council says it will review the position again in 2027 after it assesses the impact of Article 4 and national reforms.

Councillor Nathan England (Labour, The Nedge) formally took the decision to revoke on Friday alongside Katherine Kynaston the council's director of housing, commercial and customer services.

Councillor England, the cabinet member for safer streets and better housing, said they had 'listened carefully to concerns' raised by landlords.

The councillor said: "Our ambition is to lead the way nationally in raising housing standards through our firm and robust approach. It is essential that we do the right thing by our residents.

“Whether that is improving standards in the private rented sector, supporting responsible landlords, bringing empty homes back into use or tackling poor housing conditions, our focus is always on creating safe, high-quality homes and stronger communities.

"The national landscape is changing with the introduction of the Renters' Rights Act, and we welcome measures that help raise standards and improve protections for tenants.

"Locally, the introduction of Article 4 will give us greater oversight of new HMOs and help ensure growth is managed appropriately for the benefit of residents, landlords and communities.

"At the same time, we have listened carefully to concerns raised by landlords about additional licensing and have taken the decision to pause those proposals for now.

"We will continue to monitor the impact of the changes already being introduced and revisit the position in 2027 as part of our ongoing commitment to improving housing standards across the borough."

Following a request for more information about the decision to revoke from the LDRS, the council confirmed that a legal challenge was raised by landlords.

It also issued a news release about its “firm and robust” approach to raise housing standards across the borough as Telford & Wrekin Council 'plays its part in the biggest shake-up in the sector in a generation.'

It is "also reaffirming its commitment to protecting residents and supporting responsible landlords."

The council says the Renters' Rights Act, the introduction of Article 4 in the borough and 'continued success in bringing empty homes back into use the council is demonstrating a 'robust and balanced approach to housing that delivers on its commitment to protect, care and invest.'

The council has a Better Homes for All programme, underpinned by a 'commitment to educate, encourage but ultimately enforce, and work to tackle 'unscrupulous landlords whose practices impact the health, wellbeing and security of tenants and neighbourhoods.'

It says its housing team responds to around 600 requests for support and carries out 400 inspections each year.

The authority says this approach has contributed to reductions in crime and antisocial behaviour as well as improved conditions for many vulnerable tenants.

It also works alongside landlords as well as tenants and partner organisations to help resolve issues and targeting grants to support improvements in energy efficiency and through our Better Homes Loan.

Over the last five years, hundreds of empty properties have been brought back into use.

From December, the West Midlands will become one of the first areas where landlords will be required to register their rented properties. .

The Article 4 Direction coming into force across Telford & Wrekin in February 2027 means planning permission will be required for all new Houses in Multiple Occupation (HMOs), giving the council 'greater oversight of where they are created and enabling the impact on local services, neighbourhoods and communities to be properly considered before decisions are made.'