Legal action has been launched against Middlesbrough’s Labour council amid claims a licensing scheme which charges landlords almost £1,000 for each property is unlawful.

Local media in the town says that in April, the council’s executive agreed to designate an area known as Newport 1 for selective licensing for five years. A fee of £998 covering that period was chosen, hugely above the the previous charge of £820.

The Middlesbrough Gazette says two landlords sought legal advice and say they intend to seek a High Court quashing order, which nullifies a decision made by a public body. Processes have also been launched in a bid to halt the start of the scheme, due to begin next month.

Some landlords had already branding the scheme “rapacious and unreasonable” and saying it was a disincentive to those wishing to provide homes for tenants.

According to the Gazette: “The council says evidence shows that significant and ongoing anti-social behaviour and low demand for housing are linked to the private rental sector in North Ormesby and Newport and selective licensing aims to improve the standards of property management.”

The landlords taking legal action claim the council did not comply with mandatory requirements in making the decision. Legal papers from their solicitor suggest the council relied on data regarding anti-social behaviour from other parts of the ward to justify licensing in Newport 1 and failed to consider alternatives to the scheme.

The council is not commenting on the move.