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Company director loses court appeal following claims of ‘significant overcrowding’ at Leominster property

A LANDLORD who allowed ‘significant overcrowding’ at a Leominster property has lost her appeal following a two-day trial.

Mayya Kostyuk, 58, of Bishopstone, Hereford, along with her company Herford Housing Solutions Limited, had appeals against eight housing-related offences under the Housing Act 2004 dismissed at Hereford Crown Court earlier this month.

Officers from Herefordshire Council’s Environmental Health Housing team gave evidence as to how Company Director Kostyuk and Herford Housing Solutions Limited had breached conditions of their licence for the House in Multiple Occupation (HMO) at Broad Street in Leominster.

The court heard that council officers obtained a warrant and entered the property in March 2015. They found significant overcrowding, a person sleeping in a prohibited room, and failure to maintain the protected means of escape in case of fire.

The case was originally brought by Herefordshire Council’s Environmental Health and Trading Standards Service to Herefordshire Magistrates Court in May 2017, but was subsequently appealed by Kostyuk and Herford Housing Solutions Limited.

Recorder Judge Brand, Q.C. heard the defence contend that the property was a hotel and not an HMO.

Kostyuk was initially ordered to pay a £1,750 fine and £1,750 costs.

Following the case Marc Willimont, Head of Regulatory and Development Management Services for Herefordshire Council, said: “This was one of the worst cases of overcrowding our officers have seen in a licensed House in Multiple Occupation – one tenant was even found sleeping in a prohibited boiler cupboard with no windows.

“Both the company and the director Mayya Kostyuk put profit before the lives of their vulnerable tenants.

“Herefordshire Council is taking housing crime seriously, and this result sends a clear message to other criminal housing landlords that they cannot hide behind their company and such behaviour will not be tolerated.

“We will continue to protect tenants’ safety and the livelihood of our decent housing landlords, by ensuring criminal landlords are brought to justice.”

It was Herefordshire Council’s first housing conviction of the director of a company, under offences by bodies corporate, meaning Kostyuk was also personally liable for the actions of the company.

Source: Hereford Times

PropTech
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Leading PropTech entrepreneur backs stricter HMO regulations

The chief operating officer of a leading PropTech company says government proposals to increase mandatory licensing of Houses in Multiple Occupation provides an opportunity to crack down on “criminal landlords” operating in the private rental sector.

Neil Cobbold of automated rental payment provider PayProp says the new rules could also boost living standards for private renters while simultaneously reducing the number of overcrowded properties.

Under proposals from the Department of Housing, Communities and Local Government the current HMO licensing – applicable to properties with three or more storeys – will be extended to all properties occupied by five or more people from two or more households.

It has been estimated that the rules will bring an additional 160,000 homes under mandatory HMO licensing – around 60,000 properties are now included.

Cobbold says that while landlord licensing schemes are often criticised as money-making projects for local councils, bringing all HMOs under one framework appears logical.

“With HMOs adapting and more of these now two storeys or fewer, it’s important that the legislation is brought up to date. Overcrowding has become one of the biggest issues in the rental sector and this increased regulation could contribute significantly towards solving the problem” he says.

There is currently no date set for the introduction of extending HMO licensing, which has yet to be formally agreed by Parliament. However, the government says it is hoping to enact legislation later this year.

Other outstanding lettings legislation and policies include the ban on upfront letting agent fees, the movement to count private rent payments towards tenants’ credit scores, the reform of the leasehold sector and the national blacklist of criminal landlords and letting agents.

Cobbold adds: “For all these measures to have a long-term positive impact on the industry, there must be appropriate action and enforcement. The more proposals that are made and consultations carried out, the more we risk further delay to policies.”

PayProp recently encouraged letting agents to respond to as many consultations as possible, noting that as part of the consultation for the proposed HMO measures, only 11 of 395 responses were from letting agents – representing less than three per cent of the total number of respondents.

“It’s unlikely that the government will stop regulating and monitoring the rental sector so closely in 2018, so it’s vitally important that when presented with the opportunity, letting agents have their say and do their utmost to shape future legislation that benefits all parties,” Cobbold concludes.

Source: Letting Agent Today

HMO
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HMO National Minimum Room Size and Suitability

The government has now published its response to its consultation on HMOs and residential property licensing. Alongside proposals to extend mandatory licensing, the government has announced that it will proceed with introducing a national minimum room size for bedrooms in licensed HMOs. The proposals, which were detailed in the government’s earlier response paper, will prohibit landlords from letting rooms in HMOs to a single adult where the usable floor space is less than 6.51sqm and 10.22sqm for a room occupied by two adults. It will be mandatory for a HMO licence to include a condition that states the maximum number of persons who may occupy each specific room in a property as sleeping accommodation.

Room size in HMOs is frequently a hotly disputed issue between local authorities and landlords and has resulted in a number of senior court decisions in recent years. This blog looks at some of the issues surrounding room size and the potential impact of a national minimum room size.

Currently there are no mandatory HMO conditions or prescribed standards relating to room size

The Housing Act 2004 provides for certain mandatory conditions that must be included in a HMO licence. For example, a licence must contain a condition requiring the licence holder to produce a gas safety certificate (if applicable) and ensure smoke alarms are installed. While there is a power for the Secretary of State to add further mandatory conditions, since the Housing Act 2004 was enacted there have been no mandatory conditions relating to room size. Local authorities regulate room size in HMOs by relying on their discretionary powers to impose licence conditions which restrict or prohibit the use or occupation of particular parts of the property.

The Housing Act 2004 does require the local authority to be satisfied that the house is reasonably suitable for occupation by not more than the maximum number of households or persons or that it can be made so suitable by the imposition of conditions. The local authority cannot be satisfied of this if the house fails to meet prescribed standards for occupation. Again, while a number of standards have been prescribed by regulations, there has never been a prescribed standard relating to bedroom size.

The government intends to change this by both prescribing a minimum room size standard and making it mandatory for licences to include a condition stipulating which rooms in the HMO are suitable for sleeping accommodation and the maximum number of persons who can sleep in each room.

Local Authority Standards – Clark v Manchester City Council

Because there are no statutory prescribed room size standards many local authorities have developed their own guidance setting out the local authority’s view on what size standards it considers acceptable in HMOs. This is to both assist local authority officers with their decision-making and to advise landlords. The problem with this is that local authorities frequently fall into the trap of treating their guidance as if it is a statutory prescribed standard and granting or refusing to grant licences on the basis of whether bedrooms meet their own standards rather than considering the suitability of the property as a whole.

This issue was highlighted in the key Upper Tribunal case of Clark v Manchester City Council [2015] UKUT 129 (LC). In that case the Upper Tribunal concluded that the Council’s adoption of mandatory minimum size standards for bedrooms in HMOs was unlawful. While local authorities were perfectly entitled to produce guidance on room size and while their views should be given weight by the tribunal, local authorities were not able to apply their standards as if they had statutory force. Ultimately the question is whether the property as a whole is reasonably suitable for occupation by a particular number of people. Clark made it clear that it is not permissible for local authorities to automatically prohibit the use of certain bedrooms simply because they fall below the standards set out in their own guidance.

Is the type of occupant relevant to room size?

The type of occupant has also been shown to be relevant in room size cases. This was illustrated in the case of Nottingham City Council v Dominic Parr and Trevor Parr Associates Ltd [2017] EWCA Civ 188which was heard last year in the Court of Appeal. The Council’s guidance suggested that 8sqm was an acceptable bedroom size and the licences issued prohibited the use of two attic rooms until the usable floor space had been increased. The First-Tier Tribunal had deleted the condition and imposed an alternative condition that the rooms could be used by full-time student who resided in the room for a maximum of 10 months of the year. This was upheld by the Upper Tribunal and the Court of Appeal concluded that there was nothing unlawful about a HMO licence restricting occupation of a bedroom to students only. The Supreme Court has granted permission to Nottingham City Council to appeal the decision.

How will the introduction of a minimum room size standard change things?

First, it will mean that landlords will have to stop letting rooms that fall below the nationally prescribed standard. If they do not then they will be in breach of licence condition and could be prosecuted by the local authority or alternatively receive a civil penalty under the new Housing and Planning Act 2016 provisions. Rooms below the prescribed standard that have previously been found suitable for occupation will no longer be capable of being let separately as sleeping accommodation by any person aged over 10. It is important to note that the new mandatory condition will not affect existing licences but will only apply to licences granted on or after the commencement of the new regulations. This includes renewals of existing licences. Even then there will be transitional arrangements to allow landlords affected by the new rules time to reduce the number of persons in occupation.

Second, local authorities will continue to be entitled, and are encouraged, to produce their own standards complete with figures which set out what size the local authority considers acceptable for sleeping accommodation. This can be higher than the national minimum. For example, in the case of Parrdiscussed above Nottingham City Council were of the view that 8sqm is an appropriate room size. As the government made clear in its response paper ‘the minimum room size is simply a standard below which a room cannot be used as sleeping accommodation. It is not intended to be the norm or the lowest common denominator.’ However, what local authorities are not able to do is apply their standards as if they have statutory force and automatically prohibit the use of rooms that fall below their own standards. To that extent, the decision of Clark will continue to be relevant in room size disputes.

Third, it will not mean that rooms that meet the new minimum size will automatically be deemed suitable for occupation. In fact, if applied correctly, the introduction of a national minimum room size should have limited impact on rooms that meet the national standard. As is the case now, the question of how many persons or households can occupy a HMO is not dependent on calculating the floor space of each bedroom in isolation. It comes down to whether a specific property, taken as a whole, is reasonably suitable for a certain maximum number of persons or households. The only difference now is that rooms below the national minimum room size will automatically be ruled out as being suitable for sleeping in. However, these rooms can still be taken into account when assessing the property as a whole. They could, for example, provide useful storage space for the occupants of a property freeing up floor space in the bedrooms.

The regulations still need to be approved by both Houses of Parliament but it seems likely that the new standard will come into force sometime later this year. While the introduction of a national minimum room size will bring some clarity to the HMO room size debate, questions surrounding suitability and how local authorities apply their own standards will not disappear. We are likely to see new challenges in the tribunals and senior courts as room size continues to be contested by landlords and local authorities.

Source: Lexology

HMO licensing regime
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HMO licensing regime to be expanded to include low-rise homes and flats

Houses in Multiple Occupation that have to be mandatorily licensed are to include properties – regardless of height – that are occupied by five or more people from two or more households.

Currently, HMOs that must be mandatorily licensed are of three or more storeys.

The new rules, which have to be put before and approved by Parliament, will bring an extra 160,000 homes, including flats, bungalows and two-storey houses, into the mandatory licensing regime.

In a separate move, HMRC has revealed plans that would make it compulsory for any landlord applying for an HMO licence to be registered with HMRC first, for tax purposes.

In a consultation open until March 2, the move would crack down on overseas landlords letting out HMOs in the UK and also on UK landlords not paying the right amount of tax.

New rules will also come into force setting minimum size requirements for bedrooms in HMOs. As part of the licensing requirements, local councils will be able to make sure that only rooms meeting the standard are used for sleeping.

Rooms used for sleeping by one adult will have to be no smaller than 6.51 sqm and those slept in by two adults will have to be no smaller than 10.22 sqm. Rooms slept in by children of ten years and younger will have to be no smaller than 4.64 sqm.

Housing minister Alok Sharma has also confirmed that the blacklist of landlords and letting agents will be implemented this April.

He was, however, silent on who will have access to this blacklist. As things stand, only local councils and the DCLG will be able to access the list – not tenants, nor landlords or other members of the public, and not prospective employers hoping to avoid recruiting agents with bad track records.

The Government has however set out details of criminal offences which will automatically result in a ban from being a landlord. Convictions for crimes such as burglary and stalking will be added to convictions for housing offences resulting in bans.

Separately, Labour has announced that it will ban ‘no fault’ evictions if it comes to power. Leader Jeremy Corbyn said it would be a manifesto commitment. The Scottish government has already brought in a ban.

Source: Property Industry Eye

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New Government powers to ban landlords and additional HMO regulations

From April 2018 any landlord convicted for the criminal offences of blackmail, theft,  handling stolen goods, harassment and stalking will automatically be banned from letting out property and added to the new rogue landlords database.

In addition Housing Minister, Alok Sharma, has introduced new HMO regulations set to be passed by Parliament confirming all properties occupied by 5 or more people from 2 or more separate households will face mandatory licensing.

The new HMO regulations will include:

  • Minimum bedroom size requirements (to prevent overcrowding). Rooms used for sleeping by a single adult will have to be no smaller than 6.51sqm, and those occupied by two adults will have to measure at least 10.22sqm. Rooms slept in by children of 10 years and younger will have to be at least 4.64sqm in size.
  • Responsibility falling on landlords to ensure the council’s rules on refuse and recycling are adhered to.
  • Additional powers to be given to local authorities for cracking down on over-crowded and sub-standard homes.

The government has estimated this will bring 160,000 into the licensing regime.

Alok Sharma said: “Every tenant has a right to a safe, secure and decent home, but far too many are being exploited by unscrupulous landlords who profit from providing overcrowded, squalid and sometimes dangerous homes.

“Enough is enough, and so I’m putting these rogue landlords on notice. Shape up or ship out of the rental business. Through a raft of new powers we are giving councils the further tools they need to crack down these rogue landlords and kick them out of the business for good.”

The RLA policy on this was previously spelt out by David Smith saying: “Councils are already struggling to enforce licensing schemes and the extension will potentially triple the number of homes under mandatory licensing.

“What is the point in introducing extra regulations if there are no resources to enforce them?

“Tenants should not be forced into excessively small rooms, but there are cases where tenants have other space available within their properties, which should be taken into account. By concentrating so narrowly on bedroom size the Government could knock thousands of rooms out of the sector, potentially forcing tenants out of their homes.”

Source: Property 118

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HMRC “Tackling the Hidden Economy”

The HMRC consultation titled “Tackling the Hidden Economy” has identified HMOs and selective licensing in the private rental sector as an option for developing tax-registration checks.

The consultation proposes to tackle different areas of the hidden (non tax paying) economy by making access to licences needed to trade conditional on tax compliance, known as ‘conditionality’.

Click Here to see the full  HMRC paper.

HMRC wish to target Licences issued under the Housing Act 2004 as the government believes they
may be suitable for conditionality.

Selective licensing for private rented properties:

Part 3 of the Housing Act 2004 (the Act) sets out a scheme for licensing private rented properties in a local authority area in England and Wales. Under section 80 of the Act, a local authority can introduce selective licensing of privately rented homes in order to tackle problems in their areas (or any part or parts of them) caused by low housing demand or significant anti-social behaviour. In 2015, DCLG introduced further grounds for implementing selective licensing schemes: poor property conditions, high levels of migration, high levels of deprivation and high crime.

Where a selective licensing designation is made it applies to privately rented property in the are a, and all properties in the private rented sector are required to be licensed by the local housing authority (subject to certain exemptions). Local authorities in England are required to obtain confirmation from the Secretary of State for any selective licensing scheme which would cover more than 20% of their geographical area or would affect more than 20% of privately rented homes in the local authority area.

Houses in multiple occupation (HMO) licences:

A house in multiple occupancy (HMO) is a property rented out by at least three people who are not from one ‘household’ e.g. a family, but share facilities like the bathroom and kitchen. Licences are required for those who rent large HMOs. There are approximately 510,000 HMOs in England and approximately 64,000 of these are currently required to be licensed. The Department for Communities and Local Government (DCLG) recently consulted on changing the definition of mandatory licensing which would bring a further 160,000 HMOs in scope.

Local authorities have the power to introduce additional licensing schemes, which would capture further
HMOs. These licences must be renewed every 5 years.

The Paper goes on to say:

“The government values the private rented sector and wants to see a strong, healthy and vibrant market, which meets housing needs in a professional way.

This includes ensuring that landlords are reporting and paying the tax they owe.

To support this aim, HMRC is increasing its targeted compliance activity across the private rental sector through taskforce activity. It is also encouraging those who have been non-compliant to come forward through activities such as the Let Property Campaign

Applying conditionality to HMO licences could support existing HMRC compliance activity by helping and encouraging more landlords to ensure they are compliant with tax laws before renting out properties.

Similarly, there may be potential for tax-registration checks to be incorporated into selective licensing schemes where appropriate and proportionate.”

Source: Property 118

Bridging Loan HMO licensing
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‘Alarm bells ring’ as councillors examine ‘understaffed’ privately rented HMO licensing

A councillor has described how ‘alarm bells are ringing’ after considering a report on the ‘pressures’ in respect of licensing the private rented HMO sector by Wrexham Council.

The Homes and Environment Scrutiny Committee were examining this report that details the reduction in staff available to regulate housing standards in privately rented houses of multiple occupancy – known as HMO’s.

The staffing reduction over the years is detailed, with 6.9 full time equivalent staff (FTE) dealing with the licensing workload, which is now at 3.15 FTE. The report notes that there is no additional administrative support or an extra Environmental Health Officer post as there was previously.

The recent ‘Difficult Decision’ savings programme is referenced in the report, saying it “…has identified that the Public Protection Service is lean and that any future savings is only likely to be achieved via a shared service with other Local Authorities in a regional or sub-regional model. This in reality will provide additional resilience, but is likely to lead to a reduction in officers.”

Despite the staff cuts, the report states: “The workload for licensing has increased from the last additional licensing scheme.”

Detail was given to the meeting over the five year inspection periods, with an officer explaining that although the five years is the maximum mandatory inspection period, HMOs that are of concern could be inspected much more regularly such as six monthly.

Lead Member for Housing, Cllr D J Griffiths, did point out that it was a chicken and egg situation at times as without investigating properties the council would not know of any issues to deal with, but without the staff to do so then investigations may not be as frequent.

Officers explained how data is being used, such the energy efficiency certificates that are now issued, cross referenced against registered HMO’s to then deduce which could be the coldest properties. Such data is then referenced with possible high risk occupants, and therefore a priority list is created. Council officers were very careful not to criticise the staffing levels, however were clearly uneasy at definitively saying they had enough resources to deal with the possible issues in HMOs.

Cllr Benbow-Jones raised the issue of properties being rented on domestic mortgages: “These would not appear on buy to let lists, do we have an audit of all the homes in the borough?”

The council officer replied: “If anyone is renting a property is needs to be registered. If there is a property being managed or sub managed, they need to have a licence.

“At the moment the last statistics shows 105% of properties registered, which is clearly wrong, but is based on the census of 2011.”

More detail was given on work done to locate unregistered HMOs, including: “There are probably more HMOs than are legally registered, but it is finding them is the challenge. We look at various sources, council tax bills, housing benefit information, or even looking on the internet to see what is to let locally.”

Cllr Griffiths said: “If you know of people abusing the system, then let us know.”

Cllr Alun Jenkins thanked officers for a ‘very honest report’, adding: “The picture presented has set alarm bells ringing. I knew there were problems but did not know the extent. The bottom end of the private rented sector is dire.”

Comparisons were made about the huge Housing Revenue Account budget inside Wrexham Council that is managed by a sizeable team, and looks after around 11,000 council houses. Cllr Jenkins pointed out that with data given ‘there is a small team that works their socks off on the private rented sector’ looking after 11,000 houses.

“It is a dire story in the decline of the staff numbers. We have to do it because of austerity, but we are asking too much of the officers there. They can’t cope with the size of the problem.

“There are so many properties that are privately rented operating below the radar. We are working on percentages, but we do not know the total numbers, and we can’t find out. The small team simply does not have the resources to locate all the private rented property in Wrexham.”

Cllr Jenkins gave anecdotal evidence on how private rental issues are brought forward to the council with a response of “it was not registered therefore we didn’t know about it” being given as a reply.

Cllr Griffiths said: “I won’t disagree with what Cllr Jenkins has said.”

Cllr Skelland briefly spoke to say he was unaware of any HMO’s in Bronington (his ward) ‘thank goodness’, adding such issues “must be demoralising.”

Cllr Graham Rogers enquired about enforcement methods, and what actions are taken against landlords. In a detailed answer a council officer explained the various levels of intervention, adding an overview of a recent case where a landlord who was in prison had a property with a broken boiler – padlocked away so unfixable. The meeting was told the landlord in question has got a Christmas present from the council, a large bill.

Chairman of the meeting Cllr Paul Pemberton voiced his concern at the ‘understaffing’, and said: “With the under the radar properties, do you feel if you had more staff you could investigate that further?

“My concern is if you have properties under the radar we could have major health and safety issues, problems with flues, carbon monoxide and the like and we would not know.”

“I applaud what you are doing, and do not envy the department. I feel a machete has been put on offices and the department to cut rather than a stanley knife. This could be a major health and safety issue.”

The officer replied: “If there was more staff we would have more resources to identify properties.”

Councillors then shared various snippets of information from either what they had encountered on planning committees or in their wards. Cllr Rodgers observed: “We get registered social landlords not bringing their properties up to standard, then they have the audacity to submit more planning applications.”

Cllr Jenkins told the meeting there were ‘a number of HMOs in the town centre with no licence for more than three months, they are amongst the worst we have’.

Councillors looked to form a recommendation, led by Cllr Jenkins, settling on thanking officers for the report, with additional recommendations to restore staffing to two years ago and oppose any moves to share the service with another authority to save money. These recommendations were unanimously approved.

Interestingly in the meeting the council officer pointed to the Rent Smart Wales website as it has a public register that you can pop an address in and see if it is registered, and who the agent is (if there is one) – you can find the form here.

Source: Wrexham.com

HMO policy
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Council urged to “rethink” Fife town’s HMO policy

The findings of Dr Ross Brown’s study suggest that the growing levels of ‘studentification’ in private residential areas and HMO policy changes could be having a significant impact on residential areas of the town. It says that this could lead to lower levels of owner-occupied properties, restrictions in housing for local residents, house price inflation, and an increased tension between the university and local residents.

The study follows data released last month, which showed that since 2011 Fife Council had issued 753 HMO licences within St Andrews. Speaking about the findings, Dr Brown said: “Large concentration of HMO within the local housing markets can have highly complex and counterproductive effects for local communities.” He added that this could have: “Longer term implications for the long viability of public services, causing feels of anxiety and disempowerment with in the local community.” Dr Brown said the partial moratorium implemented by Fife Council could be having “unintended negative consequences” and called for an “urgent rethink”. He said: “It should impose a comprehensive moratorium across the whole of the town on new HMOs. With the exception of student housing and halls of residence, no further private sector HMOs should be licenced until the council has devised a proper, coherent and evidence-based planning and housing strategy for St Andrews.”

Helen Wilkie, housing manager for Fife Council, said: “A moratorium was introduced in St Andrews town centre in 2011 and in 2016 we commissioned an independent assessment of this approach. “In January we’ll be holding a workshop with councillors to look at the consultants’ findings and explore options for the future. We hope to report to committee with proposals as early as February.” The council added that while the moratorium means no new planning applications for HMOs are granted in the town centre, existing licences have to be renewed every three years or re-issued to new owners who buy a licenced property. Each licence that’s issued is classed as a new licence even if it is for an existing house of multiple occupation.

Source: Fife Today

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Property Portfolio Riddled With Problems Lands Landlord With Fine

A landlord has been landed with a £6,439 fine after four of the homes in his £1.5 million property portfolio were found to pose safety concerns.

Magistrates inspected two of the homes let by landlord Dilip Gohil, 67. They found that they posed fire safety concerns, and lacked escape routes in case of a fire.

Furthermore, none of the homes in the property portfolio were licensed with Nottingham City Council. According to Sarah Mills, prosecuting, the authority sent out letters informing landlords that houses in multiple occupation (HMO) required five-year licences, costing £910.

A three story house in The Meadows was found by council officers to contain seven bedrooms with five tenants who shared a kitchen and a bathroom. The property did not have the correct licensing for a HMO. A second property, also located in The Meadows, had six bedrooms with three tenants, each paying around £70 per week for a room. It also did not have a licence and contained several fire safety threats.

Miss Mills explained to the court: ‘There was a lack of fire doors throughout the property, the kitchen door did not have a handle and could not be closed. There was a fridge stored in the hallway which provided access to the bathroom, kitchen and rear door.’

A further property owned by Gohil was located in Wilford Crescent East. Inspectors found a six-bedroom house without a licence, and with issues such as a kitchen door that failed to close, which affected the integrity of the fire door and its ability to contain fire and smoke for 30 minutes’ according to Miss Mills.

A final house on the street owned by Gohil also had no licence and issues with fire detectors.

Miss Mills concluded: ‘A large refrigerator was in the hallway outside the kitchen. Smoke detectors were not linked so occupants on the first and second floor would not receive adequate early warning in the event of a fire.”

Gohil admitted to seven breaches of the Housing Act and was fined £4,750. He was also ordered to pay £1,519 council costs and a government tax of £170.

John Campbell, mitigating, told magistrates: ‘He has rectified all the matters subject of these offences. He has applied for licences for all the properties. He didn’t need to be prosecuted to leap into action. The purpose is to maintain standards and safety and that has been served.’

Source: Residential Landlord

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Potters Bar Landlord Fined Nearly £7,000 For Failing To Obtain HMO Licence

A Potters Bar landlord is facing a fine of nearly £7,000 after he failed to obtain the correct HMO licence for his rental property.

Andrew Harvey avoided paying the £500 licence fee, leaving him with a bill of over ten times this when Hertsmere Borough Council bought legal action against him.

Harvey appeared at St Alban’s Magistrates Court on Wednesday 22 November due to his failure to obtain a HMO Licence for the rental property he let, located on Oakfield Close. The property had been operating without a licence from March 2012 to June 2017. The court was told that Harvey, 50, from Stevenage, avoided all contact from the borough council, failing to respond to emails and other correspondence on multiple occasions. Harvey defended himself by claiming that he had not received the emails from the council.

When sentencing the Potters Bar landlord, magistrates said they believed Harvey should have been aware anyway that his property was meant to be licenced. It was therefore his duty to ensure that the correct licensing for the property had been obtained.

It is a criminal offence for anyone to control or manage a house with three or more storeys which is occupied by five or more people in more than one household without a licence.

An inspection by the council’s private sector housing officer in June revealed five veterinary students living in the home.

Harvey was fined £5,542 and was also ordered to pay £1,319.29 in costs, as well a £125 victim surcharge.

A House in Multiple Occupation licence costs just £542 for five years, proving that in aiming to avoid the licence fee Harvey was in fact subjecting hiself to a far higher fare.

Portfolio holder for housing, Councillor Jean Heywood, said: ‘Everybody has a right to live in decent accommodation, and the council takes its responsibilities to enforce basic living standards very seriously. As a landlord, you are responsible for the welfare of your tenants and there are strict rules in place to ensure certain conditions and duties are met. This is for the protection of all. The vast majority of landlords are happy to work with us to ensure they are managing their properties and looking after their tenants according to the letter of law. However, we will not hesitate to take other landlords who deliberately fail in their duties to court, where they could receive unlimited fines.’

Source: Residential Landlord