The Government have recently carried out a consultation on the minimum allowed size of bedrooms for licensed properties.
Whilst it is almost certain that this will become law, currently (May 2017) it is not law. However that seems not to have stopped some councils from trying to impose it on landlords. We are certainly aware that Brighton has tried recently.
You may be cheered by a recent success for common sense. Nottingham Council tried to stop the use of a couple of rooms in a licensed property and the landlord thought they were wrong. Consequently the landlord took the case to the First Tier Tribunal where he won. The Council pursued this further and took the case to the Upper Tribunal, who upheld the lower Tribunal ruling.
Determined to win the Council finally took the case to the Appeal Court, where again they lost.
The moral is, don’t be afraid to challenge a council, as long as you think you have a good case.