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HMO licensing fees reviewed in preparation for changes in government legislation

Licensing fees paid by landlords who operate houses in multiple occupation in Cheshire East have been revised, to help ensure better living conditions and management standards.

Previously, the fee for a house in multiple occupation ( HMO ) licence in Cheshire East was set at £575 for a period of up to five years – regardless of how big the HMO was.

That charge has now been replaced by a scale of fees and charges, ranging from £430 for an initial licence for the smaller HMOsHMO , through to £760 for a renewal licence for up to five years for the largest.

The revised fees are in preparation for changes in government legislation which will come into effect in October 2018 and allow councils to bring HMOs under closer scrutiny.

At the moment, a HMO must be licensed if there are five or more occupants – living in two or more separate households – who are sharing amenities including a kitchen, bathroom or toilet and the property is set out over three or more storeys.

But from 1 October, the three-storey part of the criteria will be removed.

From the same date, councils will also be able to enforce mandatory conditions regulating the size and use of rooms as sleeping accommodation, as well as rules around waste management.

Operating without a licence is a criminal offence and the penalties include an unlimited fine. Other enforcement action for licensing offences includes banning landlords from operating and issuing civil penalties of up to £30,000.

Councillor Ainsley Arnold, Cheshire East Council cabinet member for housing, planning and regeneration, said: “Poor housing can impact on a person’s mental and physical health and mandatory licensing will be key in ensuring that landlords provide good quality, safe accommodation that is well managed.

“In Cheshire East, there are an estimated 600-650 HMOs and 51 meet the current definition for a mandatory licence. However, from October, it’s estimated that around 500 will require one.

“To make sure we can respond to the significant increase in HMOs needing a licence and safeguard those living in them, we have strengthened our resources and created additional posts.

“The licence fees and charges have also been reviewed to ensure that the full cost of processing an application, which varies according to the size of the HMO , is passed to the landlord as a valid cost of operating their business.”

As part of the changes, an initial one-year licence period has been put in place where a licence is required for a property or proposed landlord for the first time.

However, as an incentive to landlords and to support the council in managing the transition to the new regulations smoothly, those who submit a complete application by 15 August can receive an initial two-year licence.

Cllr Arnold said: “Unfortunately there are a minority of irresponsible landlords who are providing unsafe and poorly managed accommodation that falls well short of the standards we expect in Cheshire East.

“By putting in place a shorter initial licence period, it will give the council greater control and improved engagement with landlords to help ensure residents are safeguarded and that other issues such as waste management can be correctly addressed.”

Source: Cheshire East

Portsmouth
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Portsmouth HMO Investors To Be Fined For Rubbish Failures

House in multiple occupation (HMO) landlords could face fines of up to £5,000 if they fail to put out their rubbish correctly in Portsmouth.

Portsmouth City Council has decided that landlords will be fined for failing to put out rubbish correctly. The move was approved in a meeting this week and will affect any landlord who manages a HMO. The fines will be increased by more than 8,000 per cent from the previous cost of £80.

If residents are found to be leaving waste in their front gardens, streets or neighbour’s front gardens landlords and tenants will be penalised.

The council’s housing boss, Councillor Darren Sanders, said: ‘We do not have the cleanest streets in the country. They are good but they are not the cleanest. We have to use every power we can to make it cleaner. This is one way in which we can do this. It’s clear from the residents’ complaints that something needs to be done. £60 is not a deterrent. We have to send the message that we are serious.’

However, local landlords do not agree with the new strategy.

Speaking at the meeting Southsea-based landlord and letting agent, Alwin Oliver, said: ‘I think we both agree on what we want. For many students waste management is pretty low on their list of priorities. I think the city council is not nearly clear enough to tenants about what is appropriate and what is required. What is needed is a really clear message on the website. Removal of the waste isn’t the issue, it’s who pays to get rid of it. It’s not always the landlord’s fault. If we put rules about waste removal on the tenancy agreement I think we’ve done enough. And just to say the issue we get most often is end-of-tenancy waste.’

Source: Residential Landlord

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Landlord fined over £20,000 for not licensing HMO with fire hazards in Bath

A Bath landlord has been fined £24,000 after failing to licence and manage a House in Multiple Occupation, which council investigators found to be in poor condition and had fire hazards.

Allan Green, of Credenhill Road, London, was charged with failing to licence a House in Multiple Occupation (HMO), failing to comply with regulations related to the management of the HMO and failing to respond to a formal request for information.

Green was found guilty of all six offences by Bath Magistrates when the case was heard on 30th May.

He was fined £24,000, £4000 for each of the six offences, ordered to pay the prosecution costs of £1,860 and the victim surcharge of £170.

The court heard that Bath & North East Somerset Council started investigations following a complaint from a resident about the property.

Officers found the property should have been licensed as an HMO because it is within the council’s Additional Licensing area and was occupied by three unrelated tenants who were sharing one or more amenity.

The court heard that officers found the house to be in a poor condition with a number of fire hazards, particularly related to the means of escape from the building.

Green was asked to supply to the council the latest gas and electrical test certificates but failed to do so and contact details for the HMO manager were not displayed in a prominent position within the property.

The court heard the defendant also failed to co-operate with the council or respond to a formal request for information.

Council officers served schedules of works on Green but he failed to complete any of the remedial work and did not apply for an HMO licence.

Councillor Paul Myers, (Conservative Midsomer Norton Redfield) Cabinet Member for Economic and Community Regeneration, said: “Our Housing Service always works in partnership with landlords to improve housing standards wherever possible.

“Additional licensing helps to ensure that occupants of HMOs are able to live in safe and well-managed properties.

“Where landlords fail to licence their properties such as the case here, they are undermining the objectives of the Additional Licensing Scheme and are putting the safety of their tenants at risk.

“This case shows our message is clear – landlords and letting agents operating outside the law will not be tolerated by Bath & North East Somerset Council.”

For more information on the legal requirements for Houses in Multiple Occupation, visit: www.bathnes.gov.uk/hmos or contact the Housing Standard and Improvement team on 01225 39644.

People can also report an unlicensed HMO here by visiting: www.bathnes.gov.uk/reportunlicensedhmo

Source: Bath Echo

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Havering Council Clamps Down On Rogue Buy To Let Behaviour

Havering Council has distributed £55,000 in penalty charges to rogue buy to let investors in the borough over the last two months.

Havering Council has initiated a clamp down on rogue landlords operating inadequate houses in multiple occupation (HMOs). Council officers and enforcement teams have been fulfilling this.

Since March, £55,000 has been issued in fines from eight financial penalty notices served to landlords. These came through the borough’s Landlord Licencing Scheme, which started in 12 wards across the borough earlier this year. The scheme requires private landlords of HMOs to apply for a licence. The programme was introduced to improve the poor management of private rented homes and hopes to curb anti-social behavior problems in the area.

One landlord was served two fixed penalty notices by Havering Council which totaled £20,000. The notices were issued as the landlord had been operating an unlicensed HMO in serious disrepair in Rainham. The property had no heating, exposed electrical wiring, and a dangerous outdoor staircase, which lead to the roof. This acted as an entrance to the HMO and put tenants at serious danger through the landlord’s irresponsible management of the property.

Cabinet member for environment, Councillor Osman Dervish, spoke out about the scheme’s success in clearing up the buy to let sector: ‘In Havering, we are targeting irresponsible landlords as we are seeing the rise of inadequate HMOs and we will not tolerate it. These rogue landlords are taking advantage of local families in the community with overcrowded and poorly maintained properties.’

The Councillor continued: ‘We’re being proactive in our efforts to crack down on this issue now, before it increases. We are one of the few boroughs who have this scheme in place and I’m pleased with what we have achieved so far, but there is more to do! Landlords of HMOs should take note and licence now to avoid such financial penalties.’

Source: Residential Landlord

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Immingham Landlord Fined For Licence Breach On Investment Property

An Immingham private landlord is facing a bill of £1380 after he was found to be renting his investment property out as a house in multiple occupation (HMO) without the correct licence.

Yordan Kaloyanov, 37, of Immingham, was taken to court by North East Lincolnshire Council. Housing enforcement officers and Humberside Police raided his rental property and discovered that he had been renting it to multiple people without a licence. The property also contained several other issues.

Upon entering the property it became apparent to officers that several people were residing there. Many of the rooms had multiple beds in them and there were far more shoes at the entrance of the property than there should have been. Although here was no one in the property when officers arrived, it appeared as though some residents had recently left the property as a freshly cooked lasagne and garlic bread was found in one of the bedrooms.

In addition to the licensing breach, the property failed to meet the standards required for a HMO. It had no interlinked fire alarms and there was no evidence that fire alarms worked or had been tested recently. There were also no fire doors, intumescent strips or self-closing arms on the kitchen or bedroom doors. Finally, the property also lacked emergency lighting and exit doors did not have the required thumb turn locks.

Kaloyanov also did not have the required locks to the rear final exit door and the front door of the property. This meant that so that they could be opened from the inside without the use of a key. This did not meet regulations stating that escape routes must be free from obstruction.

Portfolio holder for housing, Councillor Peter Wheatley, said: ‘A large number of local people rely on rented accommodation and landlords are expected to uphold high standards. Unlicensed and poorly maintained houses are not acceptable. Not only are they exploitative in nature, they could also put people’s lives at risk. The Council wants to work with landlords to ensure that they are on the right side of the law. If landlords are unsure of what they should be providing for their tenants, they can contact our housing team via our website for more information.’

Following the inspection, the house was issued with an Emergency Prohibition under the Housing Act. Yordan Kaloyanov was prosecuted and was found guilty of six offences under the housing act and handed fines of £100 per offence. He was also made to pay additional costs of £750 and a victim surcharge of £30.

Source: Residential Landlord

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Bury Landlord Fined For Unlicensed Property In Poor Condition

A rogue Bury landlord has been ordered to pay nearly £3,000 after being found guilty of several breaches relating to an unlicensed HMO in the area.

Abdul Raza Saddiqui, aged 50, of Parkhill Road, Bury, was fined a sizeable £1,200. He was also ordered to pay £2,452 costs as well as a £30 victim of crime surcharge after being found guilty of 12 housing offences.

The rental property, located on Seymour Road in Crumpsall, M8, failed various minimum safety standards. These included fire safety and gas safety, seriously compromising the safety of the tenants in the property and potentially endangering their lives should there have been a fire.

Council officers also discovered other breaches of management regulations in the property. These included a lack of working fire alarm, damaged fire doors, cluttered escape routes and broken heating facilities. There were also damaged kitchen units, as well as filthy and verminous common areas that rendered the property unfit for human habitiation due to the lack of hygiene.

Saddiqui pleaded guilty to eleven offences of breach of HMO regulations, and one offence of a breach of a condition of his HMO licence at a hearing at Manchester Magistrates’ Court,

Deputy leader of Manchester City Council, Councillor Bernard Priest, took a hard line on rogue landlords in Bury: ‘There’s no place for rogue landlords in Manchester. Landlords have a responsibility to provide their tenants good quality, safe housing and we take the issue of tenant safety extremely seriously. We will continue to pursue enforcement action to defend the rights of tenants and will not hesitate to take legal action against anyone whose property fails to meet the required standards.’

He continued: ‘Our message to landlords is simple – bring your property up to standard, make sure your tenants are safe and get a licence where the law requires one.’

Source: Residential Landlord

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Estate Agency And Landlord Both Fined For Licensing Breaches

A landlord has been ordered to pay more than £10,000 for licensing breaches relating to a property that has also seen an estate agency fined.

Willesden Magistrate Court fined Easy Let agency £20,299 in February for failing to licence a three-storey, semi-detached house that was found to be worryingly overcrowded. Following this, property owner Mohammed Mehdi Ali has also been fined £10,000 due to his failure to licence the property, which had been split into flats. This sum is on top of court costs totalling £3,300.

London’s Brent Council found that Easy Let and Ali were in breach of HMO laws. They had crammed more than 10 people into the ground and first floor rooms. Three children were also living in the property.

Willesden Magistrates Court also heard a second case, involving landlord Stephen Citron, who was ordered to pay £17,273 in fines and court costs. This was due to his failure to comply with licensing regulations.

Brent Council had found Citron renting out undersized bedrooms to tenants. He was letting a two-storey property with five standard size bedrooms and two undersized rooms which prohibited for use under the licence conditions.

The rooms measured 5.1 sqm and 4.8 sqm respectively. The legal requirement minimum requirement for a single room is 6.5 sqm, rendering the rooms clearly undersized and unfit for human habitation.

It was said that Citron ignored repeated warnings to make adjustments to his property in order to comply with legal requirements.

Brent Council’s head of private housing services, Spencer Randolph, said Ali and Citron were given ‘every opportunity’ to comply with regulations.

He stated: ‘Instead they held the council in contempt and ended up in court. If they had cooperated with us, they would have been spared the hefty financial blows and criminal records they were dealt in court.’

Source: Residential Landlord

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Massive £182,000 fine for buy to let investor after string of HMO offences

A buy to let investor has been found guilty of 35 HMO offences – and has to pay a total fine of £182,314.90, thought to be one of the largest penalties ever for an individual landlord.

Leila Amjadi, of Sutton Coldfield, was found guilty at Birmingham Magistrates Court of failing to obtain HMO licences and for breaches under the HMO Management Regulations.

The offences were in relation to the four properties she owned across Birmingham.

Amjadi was fined £85,000, ordered to pay full costs to the council of £22,974.90 and a victim surcharge of £170. In addition to this, she was ordered to pay a compensation order to 11 of the tenants, totalling £22,000.

Amjadi‘s company, Vertu Capital Ltd was also found guilty of 21 offences relating to two of the HMO properties in Selly Oak and was fined £52,000 plus a victim surcharge of £170.

In 2016, Birmingham council officers became aware that Amjadi’s properties were being let without the appropriate HMO licences.

She has over 10 years’ experience in the property letting industry and was well aware of her responsibility to obtain licences, having previously made HMO licence applications.

The council also received numerous complaints from occupants and local residents regarding the poor maintenance of the properties.

Following inspections by officers, 31 breaches of the HMO Management Regulations were found including missing fire blankets, fire doors that were either missing or inadequate, and smoke detectors which were hanging loose from the ceilings.

The district judge commented that, despite the significant income from her properties, Amjadi was an unscrupulous landlord who did not care for the health and safety of her tenants.

Amjadi was also found to have deliberately used delaying tactics when dealing with both her tenants and the council.

A spokesman for the council says: “This is the largest fine that Birmingham has seen for these type of offences and it sends out a strong message to all landlords that Birmingham city council will use all its enforcement powers to ensure that tenants are protected from rogue landlords who neglect their responsibilities”.

Source: Letting Agent Today

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Rogue landlord prosecuted for the second time in six months for HMO offences

An Oxford landlord with a previous conviction for housing offences was fined £10,000 and ordered to pay the City Council £1,535 in costs when he appeared at Oxford Magistrates’ Court on 20 March 2018.

The City Council successfully prosecuted Mr Imtiaz Gulzar for the second time in six months for failing to comply with his responsibilities under the Management of Houses in Multiple Occupation (HMO) (England) Regulations 2006 at a large HMO on Cowley Road, Oxford.

Mr Gulzar, (41) of Cowley Road, pleaded guilty to:

  • failure to keep his property in good order and repair;
  • failure to ensure that all notices indicating the location of means of escape from fire are displayed in positions within the HMO that enable them to be clearly visible to the occupiers;
  • failure to maintain property in good and clean decorative repair, and
  • failure to maintain property in a safe and working condition

After hearing the facts of the case and considering a written statement of mitigation, as well as a notice of intention to cite a previous conviction, the Court proceeded to fine Mr Gulzar £10,000 and ordered him to pay £1,535 towards the Council’s costs.

In November 2017, Mr Gulzar was prosecuted for failing to comply with the conditions attached to an HMO licence for a property in Iffley Road, Oxford. In that case, he was fined £2,500 and ordered to pay £1,425 in costs.

Councillor Alex Hollingsworth, Board Member for Planning and Regulatory Services, said: “The City Council is committed to ensuring high standards in the private rented sector and protecting tenants against landlords who do not meet their responsibilities under the law. I am pleased that in this second prosecution of Mr Gulzar, the Court imposed a higher fine than in the first case.

“This is one of the last cases to go through the courts as we are now using the new financial penalty powers that came into force in April last year. These powers allow us to issue financial penalties of up to £30,000 for certain housing offences rather than take up cases to the courts for prosecution. On average, we have issued penalties that are nearly four times what the courts used to fine landlords, so we believe the new powers will provide an even greater deterrent against violations of housing regulations by landlords.”

Source: Oxford City Council

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City landlord fined £2,000 for property condition failings

A property management company has been landed with a legal bill of almost £2,000 after admitting that it failed to keep a property in Nottingham in good repair.

Nottingham City Council`s Housing Licensing and Compliance team secured a successful prosecution against ADKAM CIC (Community Interest Company) resulting in a fine of £1000 with costs of £836 and a £100 victim surcharge at Nottingham Magistrates court.

The Council prosecuted ADKAM CIC for five separate Housing Act offences due to the licence holder failing to manage the property in line with the Management of Houses in Multiple Occupation (England) Regulations 2006.

ADKAM CIC pleaded guilty to five separate offences of failing to comply with the Management of Houses in Multiple Occupation (England) Regulations.

Nottingham City Council’s Housing Licensing and Compliance team licence landlords to operate HMOs. The council regularly undertakes risk-based compliance visits to ensure landlords are complying with the law, and on the 7th April 2017 council officers inspected a licensed house in multiple occupation (HMO) on Gregory Boulevard.

The licenced HMO was in a state of disrepair and the landlord ADKAM CIC was failing in its duties to manage the premises in accordance with the law. ADKAM CIC admitted in court that they had failed to keep the property in repair.

Portfolio Holder for Planning and Housing, Cllr Jane Urquhart, said: “Landlords are required to manage their property in accordance with the law. As this case shows, we will take robust action through the courts to prosecute landlords who put tenants’ safety at risk.

“We have powers to revoke the licence of anyone convicted of offences such as these, preventing them from operating premises in future, as well as to impose civil penalties of up to £30,000 against landlords who contravene the law, as an alternative to taking prosecutions through the Courts.”

From April 6th 2018 anyone committing a defined housing related offence such as this may receive a banning order preventing them from owning or operating rented housing.

Source: West Bridgford Wire