Fletcher v Portsmouth: What the Ruling Means for HMO Licence Conditions

In Fletcher & Anor v Portsmouth City Council [2026] UKUT 234 (LC), the Upper Tribunal (Lands Chamber) ruled that Portsmouth City Council had exceeded its statutory authority by attaching certain conditions to HMO licences. The decision drew a clear line between conditions that regulate the physical safety and management of an HMO — which the council can impose — and conditions that dictate the internal terms of tenancy agreements, which it cannot.

What the Tribunal Overturned

Portsmouth had been attaching conditions to HMO licences that required landlords to include specific clauses in their tenancy agreements: mandatory inventory processes, prescribed rent payment schedules, and deposit arrangement terms. The Fletchers challenged these conditions on the grounds that the Housing Act 2004 gives councils the power to regulate the condition, management and use of the property, not the contractual relationship between landlord and tenant.

The Upper Tribunal agreed. It held that the council's licensing powers under Part 2 of the Housing Act 2004 do not extend to dictating what a tenancy agreement must contain. Licence conditions must relate to the management, use or occupation of the HMO itself — fire safety standards, maximum occupancy limits, waste management duties, maintenance obligations and similar operational requirements.

What the Council Can Still Require

The ruling did not weaken conditions relating to the physical property and its management. The council retains full authority to impose conditions about: maximum occupancy numbers, fire safety measures and escape routes, gas and electrical safety certificate maintenance, waste storage and disposal, property repair and maintenance standards, anti-social behaviour management protocols, and notification requirements for changes in occupancy or management.

Why This Matters for Portsmouth Landlords

Before the Fletcher ruling, landlords receiving their licence certificate found conditions that effectively dictated how they ran their lettings business — deposit handling, rent schedules, inventory procedures. Non-compliance with any licence condition is a separate offence carrying the same penalties as operating without a licence (civil penalty up to £40,000 or criminal prosecution).

The ruling means landlords can now push back on any licence condition that strays into tenancy agreement territory. If your current licence contains conditions about tenancy terms rather than property management, they may be unenforceable following this precedent. A formal licence variation or appeal to the First-tier Tribunal can remove them.

Checking Your Own Licence Conditions

Review the conditions attached to your licence certificate. Conditions about physical standards, safety certificates, occupancy limits and management duties are valid. Conditions that tell you what to put in your tenancy agreement — deposit terms, rent schedules, inventory requirements — are the type the Upper Tribunal found the council has no power to impose.

Our Portsmouth Landlord Licensing Guide includes a licence conditions tracker that separates valid regulatory conditions from conditions affected by the Fletcher ruling.

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