Councillors claim many homes rented by students at Worcester University are in poor condition and that the university fails to act to improve standards when complaints are reported.
The university denies the claim and explained students are encouraged only to rent homes from private landlords accredited by the council.
The conflict came out of a Worcester City Council meeting to review the progress of a plan to licence all private rented homes in the city.
The stop-go proposal was delayed for a year so the council can undertake a comprehensive citywide housing survey.
Councillors felt that they did not have enough information about private housing in the city to make a decision about licensing buy to lets and shared homes.
Councillor Joy Squires had proposed the idea, but told her colleagues that she was now unsure about the licensing plan.
“I don’t want to penalise all landlords in Worcester, but certainly I do hope we can bring something to stop those who are not meeting requirements,” she said.
Around 80 landlords have met to discuss a legal challenge against Bath and North East Somerset Council’s proposals for additional licensing in some city neighbourhoods.
The council proposes to charge £500 per licence from January 1, 2014, and is mainly aimed at student landlords in the city.
The landlords claim licensing is expensive and an unnecessary.
Rob Crawford, chairman of the National Landlords Association Wessex, said: "Landlords agreed that there was a clear case for legal action. Good landlords felt that they were being unfairly discriminated against.
"Some feel the likely costs of legal action are too high, but others are considering the funding of further professional legal advice so that the risks and chances of winning a legal case can be better understood."
