Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Landlords Win Legal Challenge Against Portsmouth HMO Licence Conditions

The Upper Tribunal has ruled that Portsmouth City Council exceeded its powers by imposing certain conditions on HMO licences without sufficient justification. The case was brought by landlords Simon Fletcher and Iva Fletcher, with support from the Portsmouth & District Private Landlords Association (PDPLA).

The legal dispute centred on conditions attached to HMO licences issued by Portsmouth City Council. The council had required landlords to include inventories, deposit arrangements, and rent clauses in tenancy agreements as a condition of obtaining an HMO licence. Additionally, landlords were required to provide tenant information to the council, and the same licence conditions were imposed on all HMOs in the area.

The Upper Tribunal found that the council had gone beyond its legal powers. Specifically, it ruled that councils cannot use HMO licences to dictate the contents of tenancy agreements or automatically impose discretionary conditions on every property.

Following the judgment, Portsmouth City Council informed licence holders that future licences would be updated to ensure clarity and alignment with current legislation. However, existing licences remain valid.

The PDPLA stated that the decision supports its concerns about the council’s approach to HMO licensing. The association also noted that the council’s licensing policies have contributed to some smaller landlords leaving the city’s HMO sector.

This ruling may be of interest to letting agents and inventory clerks, as it addresses the limits of local authority powers regarding HMO licence conditions and the requirements placed on landlords in the private rented sector.