The Upper Tribunal has ruled that Portsmouth City Council exceeded its statutory powers by imposing blanket conditions on Houses in Multiple Occupation (HMO) licences without adequate justification, in a judgment that may have implications for local authority licensing schemes across England.
The case was brought by landlords Simon Fletcher and Iva Fletcher, supported by the Portsmouth & District Private Landlords Association (PDPLA), following a dispute over mandatory conditions attached to HMO licences in the city.
Tribunal findings
Portsmouth City Council had required landlords to include specific inventories, deposit arrangements and rent clauses in tenancy agreements as a condition of obtaining an HMO licence. The authority also mandated that landlords provide tenant information to the council and applied identical licence conditions across all HMO properties.
The Upper Tribunal found that councils cannot use HMO licensing powers to dictate the contents of tenancy agreements or automatically impose discretionary conditions on every property without individual assessment. The ruling means future licences issued by the council will be amended, although existing licences remain valid.
Wider implications
Fletcher said the decision should be noted by local authorities nationally, stating that “a large number of councils impose conditions on a blanket policy basis without proper justification.”
PDPLA chairman Martin Silman said the council’s licensing approach had contributed to landlords exiting Portsmouth’s HMO market. “I had four small HMOs, now I have none,” he stated.
The judgment comes as the UK housing market continues to face regulatory and economic pressures, with the private rented sector subject to increasing scrutiny. The case may prompt landlords in other areas to review licence conditions imposed by their local authorities.
Following the judgment, Portsmouth City Council informed licence holders that future licences would contain updated wording “to ensure clarity and alignment with current legislation.” The council has not indicated whether it will appeal the decision.
The ruling establishes that while councils retain powers to license HMOs and attach appropriate conditions, these must be justified on a case-by-case basis rather than applied as standard policy across all properties.
