Nottingham City Council has won a decisive Court of Appeal case that clamps down on rogue landlords, closing a major legal loophole.
The ruling strengthens the enforcement of Houses in Multiple Occupation (HMO) licensing, ensuring more shared properties must meet vital safety and management standards.
The legal battle centred on the provider Housing 35 Plus Limited (H35), which claimed an exemption from HMO licensing because it is a registered co-operative society. Nottingham City Council contested this, arguing the company’s structure did not meet the strict legal criteria.
Having initially been challenged by the First-tier Tribunal, the Council persisted, successfully overturning the decision at the Upper Tribunal. H35’s final appeal has now been dismissed by the Court of Appeal, which upheld the Council’s interpretation of the law.
This precedent-setting judgment confirms that H35 and similar providers cannot bypass essential HMO licensing. H35 must now apply to license its shared properties – potentially more than 70 across Nottingham – and the case returns to tribunal to settle outstanding issues of penalty.
The result provides a clearer legal framework to protect tenants across the UK.
Councillor Jay Hayes, Executive Member for Housing and Planning at Nottingham City Council, said: ‘This is a hugely significant ruling, not just for Nottingham but for councils across the country. The Court of Appeal has provided vital clarity on how the law applies, and it confirms that organisations cannot avoid their responsibilities through technical interpretations that don’t reflect how properties are actually managed.
‘This case shows our commitment to standing firm, even when enforcement action is complex and time-consuming. Licensing exists to protect residents and improve housing standards, and we will continue to use all available powers to hold landlords to account.’
The case represents a major success for Nottingham City Council’s work to protect tenants and uphold housing standards.
Photo: Altaf Shah
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