Landlords are mounting a legal challenge against a council’s plan to introduce HMO licensing fees.
East Midlands Property Owners’ Association has warned Nottingham City Council that landlords intend to take the case to court for judicial review.
The association represents 500 landlords owning 15,000 homes to let in the area.
The council wants to extend HMO licensing to more areas of the city.
Councillors argue the plan will let them regulate HMOs and landlords better and also allow them to cap HMO numbers.
However, the association explained more HMO licensing fees will penalise landlords who already follow HMO laws while rogue landlords will still operate outside the system.
Giles Inman, the association’s business development officer, said: “The attitude among the landlords is that we are fed up and frustrated that this entire scheme has been rolled out with very little consultation with landlords.
“Clearly, we work at the coal face and we want the rogue landlords to be taken out and shut down because it gives the whole sector a bad reputation
“But we feel additional licensing will mean good landlords will be facing extra expense to meet things they are already meeting through other accreditation.”
The licensing scheme was approved a month ago and will start on January 1, 2014 and run for five years.
HMO landlords must pay a £910 licence fee covering the five years. Those already part of an accreditation scheme will pick up a £115 discount.
The licensing plan will net around 3,200 HMOs in the city.
Inman said: “One landlord has 70 houses and most will need a licence. This landlord is already accredited and already subscribes to the legislation required of him.
“From his point of view, there is very little this additional licensing is going to offer him other than a huge bill.”
A council spokesman said: “Licensing will start in some parts of the city where significant numbers of HMOs have been identified as being poorly managed to the detriment of tenants or the public.
“The scheme will allow us to take a much more proactive approach to ensuring that HMOs in Nottingham are of an acceptable standard.
“A consultation on the proposals showed that 65% of online contributions and half of written submissions supported the scheme.”