Telford and Wrekin Council has withdrawn its additional HMO licensing designation for smaller shared houses, removing a proposed charge of more than £1,500 per property after a legal challenge by the National Residential Landlords Association.
The designation had been due to start on 25 August and would have covered HMOs with three or four occupants. The council revoked it on 11 September, with the withdrawal taking effect on 15 September, according to the NRLA.
That leaves local landlords without the planned licence requirement for now, but the separate Article 4 Direction affecting HMOs is still due to take effect in February 2027. Owners considering a purchase, conversion or renewal in the area need to separate planning controls from the withdrawn licensing scheme.
Telford HMO licensing designation is withdrawn
The NRLA said it raised concerns over the way the council had publicised the designation and consulted on the scheme. It said the consultation page did not contain key documents, including the proposed fees and the licence conditions, despite references to them.
The association also challenged a proposed £150 missed-appointment charge, saying no legal basis or cost justification had been provided. Its letter before claim was issued on 19 August, six days before the scheme had been scheduled to begin.
The council initially proposed completing the steps that had been missed, but then revoked the designation in full. Ben Beadle, chief executive of the National Residential Landlords Association, said the outcome showed that councils should use their powers within the law and consider the costs created for responsible landlords.
Database rollout adds a second compliance question
The withdrawn scheme would have required landlords to provide compliance information locally as the West Midlands prepares for the first rollout of the national Register your rental property service. The NRLA says registration begins on 15 December 2026, costs £65 per property each year and must be completed by 14 March 2027.
This follows Landlord Knowledge’s May report on Telford’s proposed wider HMO licensing, when the authority was preparing to extend controls to smaller shared houses. The reversal changes the immediate licensing cost, but it does not remove the need to check the February 2027 Article 4 planning change before creating or enlarging an HMO.
Landlords should also distinguish this case from a blanket ruling against HMO licensing. Councils can still introduce schemes where the legal process, evidence and designation requirements are met. Landlord Knowledge’s analysis of rising local licensing costs shows why the fee structure and consultation documents need close reading before a scheme starts.
The NRLA’s account of the Telford challenge says the council admitted it had not properly announced the scheme and had failed to make relevant documents available. The association’s account is the public source for the withdrawal and its underlying challenge.
What this means for landlords
- If you own a smaller Telford HMO: the withdrawn designation means the proposed local licence and £1,500-plus fee are not currently payable under that scheme.
- Check separately: the Article 4 Direction due in February 2027, because planning permission and HMO licensing are different controls.
- Keep evidence: retain the documents used to establish your current HMO use and any planning status before the new planning restriction begins.
- Watch for: any fresh consultation or replacement licensing proposal from Telford and Wrekin Council.
- Bottom line: the fee plan has been withdrawn, not every future HMO control in the borough.
Editor’s view
The important part of this outcome is not simply the avoided fee. It is the reminder that a council cannot treat consultation and designation as a formality. Landlords should challenge poor process early, but should not mistake this withdrawal for a free pass on planning or property standards.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 22 September 2026
Sources: National Residential Landlords Association
Related reading: Telford lines up wider HMO licensing from August
