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Highland landlord prosecuted for unlicensed HMO

A Fort William landlord has been successfully prosecuted for operating a House in Multiple Occupation (HMO) without a licence.

Mr Harjinder Singh Randhawa, the owner of the 1st & 2nd floor flat at 39 High Street, pled guilty and was fined £1800 at Fort William Sheriff Court on January 28.

Whilst conducting an investigation into an accident at work, environmental health officers from Highland Council had cause to visit the property and found it to be occupied by seven people who were all residing in the property as their main residence and requiring to share kitchen and sanitary facilities.

The property was found to be in a relatively poor standard of repair throughout and failed to meet the council’s adopted standards for HMOs. Of particular concern was the lack of any fire safety precautions and the poor condition of the electrical installation within the property.

Councillor Ian Cockburn, chair of the licensing committee, said: ”Ultimately the HMO licensing scheme was introduced to protect tenants and help ensure properties are safe, and so it is important that the council takes action to protect tenants in these cases.

“I am pleased that in imposing this level of fine the court has reflected the importance of licensing and demonstrates to responsible landlords who have made the effort to comply with the legislation and bring their properties up to the required standard, that less responsible landlords are actively being pursued by the council. I would encourage both landlords and tenants to contact the council if they have any concerns about their property. Officers are here to help and offer advice.”

Graeme Corner, senior environmental health officer, added: “We hope that the significant fine imposed in this case sends out a strong message to landlords in the Lochaber area and throughout the Highlands that they must obtain a license if their property is being occupied as an HMO. Whilst our service always prefer to work with landlords to ensure compliance, we will not hesitate to take robust action where the health, safety and well-being of tenants is comprised by poorly managed and maintained properties such as in this case.

“The environmental health service will continue to take action against those landlords who do not apply, so I would urge all owners and agents to ensure that their properties are meeting legal requirements.”

Source: Scottish Housing News

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‘Cost-cutting with a view to profit’: Letting firm fined for string of faults at HMOs

A letting company has been fined over a string of defects at its shared accommodation for vulnerable adults.

Salop Lets, based in Madeley, Telford, has been ordered to pay more than £43,000 after pleading guilty to 24 offences under the Housing Act 2004.

The company had previously tried to blame the problems on its tenants – vulnerable adults who lived in three houses of multiple occupation in Hurleybrook Way, Leegomery.

The defects included broken and damaged fire doors and incomplete and missing safety certification for the the fire alarm systems, Telford Magistrates Court head.

General faults such as broken showers, damaged kitchen units and broken or missing lighting units were also found, as well as emergency fire alarms and lighting being connected to a pre-paid metered electricity supply, meaning when the meter ran out, the emergency systems did not work.

The issues were brought to light following an inspection from environmental health and a fire safety officer from Shropshire Fire and Rescue Service.

An initial complaint was made back in February.

The court heard improvement notices had been served to ensure the properties were brought up to the required standard, but the work was either done to a poor standard or not at all.

In one instance the company installed a second-hand fire door claiming it to be new.

Prosecuting, Sarah Morgan, said: “Very little work was done during the operation of the improvement notices.

“I would draw your attention to the past history of the company and consider that they were cost-cutting with a view to profit.

“They were a professional management company. They chose to house vulnerable tenants but failed to manage the risks associated with this”.

The court heard that since 2015 housing benefit totalling nearly £1.5 million had been paid in respect of properties managed by Salop Lets.

The company was fined £31,500 and ordered to pay £11,462.07 costs and £170 surcharge.

Sentencing the company, district judge Rebecca Crane said it had fallen far short of the housing standards expected and had ignored concerns raised by Telford & Wrekin Council, adding that there was a risk of death or life-changing injury from the company’s failure to maintain fire alarms and fire doors.

Councillor Richard Overton, Telford & Wrekin Council’s cabinet member for housing and enforcement, said: “The safety of our residents is of paramount importance.

“That is why we are working hard to make sure that private rented housing is safe for tenants to live in.

“Earlier this year we set up the rogue landlord taskforce as part of our Better Homes For All package to improve housing in the private rented sector.

“This case highlights the vital work of this taskforce in keeping people safe.”

Source: Shropshire Star

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Redbridge Landlord Fined £7,500 For Overcrowded HMO

A Redbridge landlord has been fined £7,500 after he was found to be cramming 23 people into a house in east London. The property in question, situated in Beehive Lane, Gants Hill, had room for just six occupants.

Housing officers at Redbridge council raided the property following complaints from neighbours about overcrowding. The officers discovered 16 people currently in the house as well as evidence of another seven living there. The people inside did not have access to sufficient cooking, washing and toilet facilities. The residents inside were also all adults.

The property’s managing agent, Marvel Estates Limited, held a house in multiple occupation (HMO) licence, however it was only valid for six tenants.

Following the raid, which took place in June last year the firm, based in Forest Gate, appealed against a financial penalty imposed by the council. However, at a tribunal hearing last month it agreed to pay the fine.

The cabinet member for housing and homelessness at Redbridge Council said: ‘We are determined to root out rogue landlords and this financial penalty makes it clear we mean business. It’s unacceptable for tenants to be living in conditions which fail to comply with legislated requirements. We want to work with landlords to prevent this kind of situation but if they are not willing to do so, our message is clear – we will find and fine you.’

The fine for the Redbridge landlord is part of a wider crackdown on rogue landlords in Redbridge and across London. Last month in Brent a landlord was found to have crammed 26 mattresses into a dangerous three-bedroom house. Officers forced their way into the property and found over 20 men who were residing in conditions described as ‘appalling and unsafe’. The house, located in Kingsbury, was described by the council as one of the worst illegal HMOs it has ever experienced.

Source: Residential Landlord

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Property manager landlord wins appeal against nine HMO convictions

A landlord and property manager has won his appeal against convictions relating to a House in Multiple Occupation.

Cyril Thomas, director of Platinum Crown Investments in Colchester, was fined £20,000 by magistrates last December.

The case was sparked by a tenant’s complaint to Colchester Council about heating and mould. This led to an investigation at the end of 2015.

Thomas faced nine charges, but immediately after the convictions he said he would appeal.

He has now had them overturned by Chelmsford Crown Court.

Afterwards, he said he was delighted.

He said: “It has been a costly, emotionally draining and time consuming process for all involved. The judge stated that all charges were to be dismissed due to insufficient evidence from the council.

“One of the main reasons why I was able to successfully defend myself was that over the last several years I had invested significantly in bespoke software systems that enabled me to provide the necessary evidence when required.

“It is important for property managers and landlords to invest in systems that help them to stay on top of all the legal requirements that are now in place.

“My defence barrister Archie Maddan pointed out several issues with the council’s case. Some of the issues included the fact that one of the alleged charges failed to state what Mr Thomas was actually being convicted for.

“Several of the alleged charges did not occur on the date that Environmental Health Officer Torben Wood initially claimed that they occurred on and were not confirmed by the judges to be offences that warranted a charge.

“The main reason for the dismissal was the fact that the council never had sufficient evidence to prosecute me in my personal name from the beginning but for whatever reason still decided to push the case forward.”

He said at least three of the alleged offences were due to tenant negligence – for example, taking lightbulbs from communal areas to put in their bedrooms, and leaving bikes in fire escapes despite written warnings from Platinum Crown.

Thomas will now be refunded the fine and can apply to have some of his legal fees refunded.

A spokesperson for Colchester Council said: “The earlier decision by Colchester Magistrates’ Court to judge Mr Thomas, rather than his company Platinum Crown Investments, had a key bearing on the case and means no party has been convicted for the breaches identified.

“However, the appeal was upheld on the basis that Mr Thomas, in his capacity as landlord, was not the person responsible – not that violations did not exist – and we therefore maintain that it was right to take the action we did against serious breaches of the regulations.

“While we will continue to work closely with local landlords and letting agents to improve standards of accommodation in the private rented sector, we remain committed in our duty to pursue legal action whenever accommodation is not being responsibly managed.”

Source: Property Industry Eye

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Agent who let out ‘fire hazard’ room in HMO is told to pay over £32,000

An agent who let a tiny room behind a kitchen to a tenant has been ordered to pay more than £32,000.

Viviane Almieda, of My London Services, in Willesden, pleaded guilty to breaching HMO licensing conditions, including failing to comply with the council’s amenity and space standards as well as obstructing the council’s investigation, in Willesden Magistrates Court on Tuesday.

She ignored warnings from Brent Council enforcement officers that a room behind the kitchen was not safe to rent out because it was a fire hazard.

The room in a converted three-bedroom property also measured less than 6.5 square metres – the minimum legal requirement for a single bedroom.

Cllr Eleanor Southwood, cabinet member for housing and welfare reform, said: “Housing tenants in rooms that are too small and hazardous to fire risks is illegal. There’s no excuse for it.

“Landlords, agencies or sub-letters who exploit tenants will pay heavily in court. Every resident in Brent has the right to a decent standard of living.”

Almieda was handed a £30,000 fine plus ordered to pay £2,090 in court costs and a £170 victim surcharge.

Source: Property Industry Eye

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Huge Fine For HMO Licence Breach Landlord

A criminal landlord has been hit with a huge fine of £35,000 after being found guilty of breaching House in Multiple Occupation (HMO) management regulations.

Landlord David Greene, 64, was prosecuted at Birmingham Magistrates Court on August 30. The rental property that he was letting was described by council officers as the ‘worst they had seen in the last 10 years.’

The landlord had owned a three-storey property, which included ten self-contained flats, since 1986. He pleaded guilty to breaching HMO regulations through his rental property.

Birmingham Council officers visited the building and found smoke detectors hanging form the ceiling, as well as poorly fitted fire doors. There were also blocked fire exits which would have seriously hindered tenants’ opportunity to escape in a fire, rendering the property a serious danger for human habitation. There were also broken and boarded up windows. The tenants who lived in the building had no access to hot water or heating. The front and rear doors of the building were insecure, leaving the property open to the elements which would have caused real issues in winter.

The council had attempted to contact Greene on several occasions to resolve the poor conditions. However, he neglected his responsibilities as a landlord and as a result and put the lives of his vulnerable tenants in danger.

As a counter argument, Greene claimed that he had issues gaining access to the flats. However, he was still charged with the huge fine of £35,000 as well as costs of £1,941 and a victim surcharge of £170.

Cabinet member for homes and neighbourhoods at Birmingham City Council, Councillor Sharon Thompson, spoke out about the huge fine, saying: ‘Mr Greene has shown a callous disregard for his responsibilities as a landlord. This fine sends out a message to all landlords who ignore the law that Birmingham City Council will pursue anyone who lets out substandard accommodation.’

Source: Residential Landlord

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Court Case Legal Precedent For Landlord Challenges To HMO Licensing Cost

A recent court case may have set a legal precedent enabling landlords to challenge the cost of HMO licences set by their local authorities.

The court case of Mr Peter Gaskin v LB Richmond Upon Thames [2018] EWHC 1996 (Admin) has called into question the validity of certain licensing costs. Currently, by law local authorities are able to set the cost of HMO licences at their own discretion. The topic has gained traction recently as new rules for HMO licensing will come into effect from October 1st. It is estimated that a further 177,000 more landlords will need to obtain a licence.

However, in the recent court case it was ruled that licence fees can only cover the cost of the licensing scheme and not other costs such as enforcement. This was due to the fact that the Administrative Court decided that Mr Gaskin, a HMO landlord, was providing a service within the meaning of EU law, by the private letting of accommodation. As Mr Gaskin had met the requirements for providing a service, the court determined that the fee charged by the local authority had to be structured in such a way which complied with EU law.

The property in question is situated in Richmond Upon Thames in London. Under the Housing Act 2004 Mr Gaskin was required to obtain a HMO licence from the London Borough of Richmond before he was permitted to let out rooms in the property. HMO licences need to be renewed every five years and when the time came for Mr Gaskin to renew his he was told by the council that he would need to pay a fee which covered the costs of processing his application but also contributing towards the authority’s costs of running the HMO licensing scheme. Mr Gaskin refused to pay the amount requested, instead offering a lower sum.

The landlord was prosecuted in the Magistrates’ Court for operating an HMO without a licence. However, under EU Directive 2006/123/EC (“the Services Directive), there is a provision in its article 13(2), that where a charge is imposed for someone to apply to have access to a service activity, the charge is not permitted to exceed the cost of the authorisation procedures. The Administrative Court handed down judgment on July 31st, 2018, and stated that Mr Gaskin was providing a service within the meaning of EU law. Which therefore deemed that the London Borough of Richmond Upon Thames’s fee for an HMO licence was unlawful as the charge covered costs beyond the cost of processing the licence application. The council was therefore not entitled to demand the fee which it had demanded.

Chief executive at Commercial Trust Limited, Andrew Turner, said: ‘This is an interesting case which may set a precedent for some landlords and could have the potential to save HMO landlords hundreds of pounds, if some local authorities have been charging more than they were legally entitled to, for HMO licences. This is a matter of law and I would urge any HMO landlords that believe they may have been overcharged, to seek professional legal advice.’

Source: Residential Landlord

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Sneinton Landlord Prosecuted For Aggressive Behaviour

A Sneinton rogue landlord has been prosecuted by Nottingham Magistrates Court for acting aggressively towards his tenant.

Landlord Sahfaqat Ali Sadiq threatened to throw his tenant’s belongings onto the street. Nottingham City Council became aware of his behavior following a complaint from a tenant who claimed to have been ‘forcibly removed’ from a house despite paying rent and not causing any damage to the property.

The council discovered that the tenant had not received any paperwork from Sadiq, of Vicarage Avenue, Derby, after paying his deposit and rent in cash. It was also reported that the landlord had let himself into the Sneinton house on a number of occasions in pursuit of money that did not belong to him.

The tenant also claimed that Sadiq had acted aggressively towards him by shouting and threatening to throw his belongings into the street. The landlord then placed kitchen items into bin bags.

Upon inspection, it was discovered that the Sneinton house did not have the correct licensing for a house in multiple occupation (HMO).

Sadiq was found guilty of aggressive practices, failing to protect a tenancy deposit and operating a House of Multiple Occupation (HMO) without a licence at Nottingham Magistrates’ Court on Friday. He was fined £1,750.

Nottingham City Council stated that the three offences fell beneath the Housing Act 2004 and Consumer Protection from Unfair Trading Regulations.

Sadiq denied assaulting one of his tenants. He also stated that he had submitted an application for a HMO licence which he assumed was being processed as he had not heard of its progress.

Portfolio holder for housing and planning, Councillor Jane Urquhart, said: ‘Landlords are required to manage their property in accordance with the law. Failing to secure tenants’ deposits and acting aggressively towards them is not acceptable. This case shows that Nottingham City Council will take robust action through the courts to prosecute rogue landlords.’

Portfolio holder for community protection, Councillor Toby Neal, added: ‘This is a great result for the council, showing the importance of different teams working together and using consumer protection legislation to protect vulnerable tenants.’

Source: Residential Landlord

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Landlords warned over housing rules as £16,000 fine dished out in

Warnings have been issued to rogue landlords in Wolverhampton after council officers issued a £16,000 penalty to a homeowner flouting the rules.

Wolverhampton council handed a Whitmore Reans landlord the huge financial penalty for running a house in multiple occupation (HMO) without a licence.

It is the first time the council’s housing team issued a civil penalty to a landlord for failing to abide by its rules.

Deputy council leader Councillor Peter Bilson said the case should serve as a warning to landlords across Wolverhampton.

The cabinet member for city assets and housing added: “This is a stark warning to private sector landlords that they must comply with the HMO rules in the Wolverhampton.”

The council said the fine, which will be reduced to £10,600 if paid in full within 28 days, signals the start of a tougher approach to managing private sector landlords.

Powers are now in place to enforce civil penalty notices of up to £30,000 per offence, and new licensing rules for HMO will come into force on October 1.

Government officials will bring in the changes to HMO licensing in a bid to improve standards of housing across the country.

Key changes will include needing to obtain licences for some properties occupied by five or more residents, living in two or more separate households and sharing amenities.

It will apply to single and two-storey properties, as well as purpose-built, self-contained flats in a block of no more than two self-contained flats.

Councillor Bilson added: “Through our Rent with Confidence framework we continue to work closely with private landlords across the city.

“It is important they are fully aware of the new government regulations that come into effect from October 1 and that we will be doing everything in our power to enforce them.

“Rent with Confidence supports responsible private housing businesses in the city and aims to improve the quality and choice of housing for private sector occupiers.

“We are here to advise landlords on the new changes and we will continue to work with landlords, agents, owners and service users by providing a range of information and guidance through the Rent with Confidence scheme.

“Providing further protection of health, safety and welfare rights for tenants in the city is vital.”

Last year, the council announced it would be extending enforcement powers handed to its officers so they could dish out fines of up to £30,000 to landlords breaking housing laws.

But the council may reduce the charge if rogue landlords agree to work to address issues.

They will need to agree to be registered with the Rent with Confidence scheme – a five-star rating system – and achieve at least a three star rating.

Source: Express and Star

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Thurrock Landlord Fined For Failure To License Investment Property

A Thurrock landlord has been fined £2,252 after failing to license her property and failing to provide acceptable living conditions for her tenants.

Rogue landlord Adeola Makinde was found guilty of failing to licence her rental property in Norfolk Place, Chafford Hundred. The property required a house in multiple occupation (HMO) licence. A trial at Basildon Magistrates Court last week lead to Makinde being prosecuted for her failure to sort this out.

The court was told that Thurrock Council had been requesting a HMO licence application from Makinde since 2014. However, no application was made.

An inspection in July 2017 revealed that the property contained 12 people living in four rooms as well as sharing a single kitchen. It also found that there were inadequate fire safety measures and a number of issues with the condition of the property which rendered it unfit for human habitation. The overcrowded nature of the property could have endangered the health of the tenants who lived inside as well as causing severe problems if a fire were to start and the residents needed to escape.

Makinde pleaded not guilty to the charge of failing to licence the HMO, three breaches of HMO management regulations, failing to return information about the house and failing to return documents. However, magistrates deemed her actions were unreasonable and therefore found her guilty of all six charges.

Councillor responsible for Thurrock housing, Barry Johnson, said: ‘We believe everyone should have a good quality place to live and will continue to take action against those landlords who fail to ensure their properties are safe, well managed and properly licensed. We are currently consulting on a proposed new additional licensing scheme which would mean more landlords who own shared houses and flats have to comply with national health and safety standards and local criteria.’

Source: Residential Landlord