Accrington landlord Paul Brown took Hyndburn Council to court after it sought to use its selective licensing scheme to force the landlord to carry out works.
The Court of Appeal has ruled that councils cannot use selective licensing conditions to impose new standards on private rented homes.
Accrington landlord Paul Brown took Hyndburn Council to court after it sought to use its selective licensing scheme to force the installation of carbon monoxide detectors and carry out electrical safety checks.
Brown had already carried out both of these requirements, but, supported by the Residential Landlords Association, he argued that imposing such standards through licensing schemes went beyond the powers available to local authorities.
He and the RLA argued that rather than relying on licensing schemes which only cover certain properties, electrical and gas safety issues are best addressed by councils using the extensive powers they already have under the Housing, Health and Safety Rating System (HHSRS).
This is the risk based evaluation tool to help local authorities identify and protect against potential risks and hazards to health and safety from any deficiencies identified in dwellings.
Crucially, this applies to all private rented homes, whether they require a licence or not.
The RLA is calling for the guidance associated with the HHSRS, which was last published in 2006, to be updated urgently to reflect considerable changes in the sector since then and said that this would better support councils to use and enforce their powers under this system.
RLA policy adviser Richard Jones said: "This case was not about trying to stop councils from imposing requirements. It was about how they go about this ensuring that they use the proper processes which already exist.
"The judgement is a reminder that councils already have extensive powers to deal with properties found to be unsafe and they must act in a legal manner."