£15,000 fine for failing to license property
Press Release Details
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- Date
- Thu, 02 Oct 2008 12:55:03
Real Estate Solutions UK Ltd was found guilty at Croydon Magistrates' Court of running an unlicensed HMO from a three-bedroom property in Old Lodge Lane, Purley.
HMOs are properties that are occupied as bedsits or shared houses. Recent government regulations introduced mandatory licensing and gave local authorities extra powers to ensure the properties are safe and up to standard.
The company was fined £14,750, and the council will now proceed with a repayment order for rent and housing benefit that the company received during the period the property was operating as an unlicensed HMO.
The court heard how enforcement officers from housing services' asset and renewal division began investigating the company in August 2007. They discovered the Purley property was occupied by five unrelated households and was therefore required to be licensed under the council's additional HMO licensing scheme.
Despite being sent the appropriate application form and numerous warning letters, Real Estate Solutions UK Ltd failed to license the property and continued to operate it as an HMO.
Councillor Dudley Mead, deputy leader and cabinet member for housing, said: "A lot of potentially vulnerable tenants live in HMOs and can be taken advantage of despite paying their rent on time and being responsible tenants.
"The council takes its licensing duties seriously and monitors around 400 HMOs across the borough to ensure they are safe and complying with the law, but we believe this is just a fraction of the actual number in existence.
"This prosecution should act as a warning to other landlords who think they are above the law. If you do not have a licence we will not hesitate to take action against you and it could cost you dearly."
Houses in multiple occupation that are occupied by four or more tenants must be licensed with the council. Such properties are subject to strict standards of amenities, fire and management regulations.
Anyone living in an HMO who feels that the property is not up to standard should contact the housing enforcement section on 020 8726 6100 ext. 63837.
