In a rare turn of events, a town council has dropped its plans for selective licensing out of fear that it will force landlords to quit.

Blackburn with Darwen Council had proposed a scheme covering more than 1,100 properties in the Hollins Bank area near the centre but a consultation with landlords, tenants and letting agents has led to a rethink.

Most landlords and tenants were against the scheme, in an area that features low demand properties, and a high tenant turnover.

In a report being prepared for the Cabinet which leads the council, leading councillor Quesir Mahmood says: “Landlords were generally unhappy with the proposals and felt that the council had already made their decision, and could be using this action to punish them. Landlords also questioned the proposed licence fees to be charged and asked how they would be used to provide support and resources for landlords.

“The proposed licence fee charge could directly impact tenants, as landlords would undoubtedly push additional costs onto their tenants through increased rents. Landlords may decide to sell their properties if refurbishment costs are high.”

He says that a significant fear is that landlords could quit the private rental sector completely if the costs and regulations surrounding the scheme were excessive. His report says that if 10% of landlords in the proposed licensing zone sold up, that would result in some 115 households requiring alternative accommodation or risking homelessness.

“This will result in reduction in availability of rental properties for those unable to access affordable rental homes” admits Mahmood.

Instead he says the authority will offer advice and support for landlords, including those considering selling, and will target further legal action on known rogue landlords.