In a contentious move, Middlesbrough Council is facing backlash after charging a landlord over £43,000 for licenses covering 52 flats in the Linthorpe Hall 248 student accommodation. Gareth Stobart, the property manager at Linthorpe Property Management, criticized the council, alleging that it imposed “blanket” requirements while exempting university-owned bedrooms.
The council, however, defended its decision, asserting that each of the flats in Linthorpe Hall 248 was deemed a “licensable dwelling.” According to the council, as the facility is privately owned and operated, it is subject to the same fee applied to numerous other privately-rented properties.
The controversial fee, introduced as part of a five-year scheme aimed at enhancing standards in private rentals, is levied per home or property in specified Middlesbrough areas. Stobart argued that landlords like him were unfairly targeted by being charged per flat, putting them in the “firing line.”
“It’s just crazy,” Stobart expressed to the Local Democracy Reporting Service. Despite charging up to £100 per week for an en-suite room and shared facilities, Stobart highlighted the financial challenges his company faced, exacerbated by the impact of Covid and a decline in student numbers.
Linthorpe Hall 248, designated as purpose-built student accommodation, faced classification as houses of multiple occupation (HMO) for the fee. Stobart questioned why other student properties of similar size operated by educational bodies were exempt from licensing.
The selective licensing scheme, applicable in Middlesbrough’s Newport area, was introduced in 2019 to enhance housing conditions and is set to be reviewed in the coming months. Landlords have raised concerns about its effectiveness and claim they are still being charged the full rate, even as the scheme approaches potential discontinuation in the next year.
There are also allegations that landlords are passing the licensing cost on to their tenants. The council, however, maintains that Linthorpe Hall 248 is not exempt as it is not controlled by an “educational establishment.” A spokesperson emphasized that the income generated from the license fee is solely allocated to staff delivering the scheme, with the council claiming no profit from the initiative, which aims to improve housing conditions in the area.