Posts with tag: rogue landlords

Proposals to tackle rogue subletting criticised

Published On: November 11, 2015 at 10:54 am

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A tenant eviction specialist has poured scorn over latest Government proposals designed to prevent subletting scams that ultimately lead to tenants being placed in unsuitable and cramped accommodation.

Founder of Landlord Action, Paul Shamplina said that the proposals would require a larger scale of enforcement resources in order to ultimately be effective.

Alterations

The Government plans to alter the scope of mandatory licensing of HMO’s to smaller and medium-sized properties. It believes that by expanding the number of properties to which the rules apply, this will make it easier for local authorities to bring standards up in properties used as shared houses.

While welcoming the ideology behind the plans, Shamplina said that some landlords will continue to abuse the system. He notes that these landlords, ‘are guilty of exploiting the vulnerable whilst profiting from the housing crisis, particularly in the capital. Therefore, anything which helps to eliminate this problem and impose proper sanctions in the case of violation is a positive step forward.’[1]

Hindrances

Shamplina feels that, ‘one of the biggest problems with implementing any new legislation is enforcement.’ He said that, ‘local councils do not have enough resources as it is, with environmental health officers already responsible for monitoring overcrowding, subletting, poor conditions, and most recently retaliation eviction.’[1]

‘There is no room in our sector for rogue landlords, but to tackle the problem properly, legislation needs to be backed up by more boots on the ground,’ he added.[1]

Proposals to tackle rogue subletting criticised

Proposals to tackle rogue subletting criticised

Culprits

Continuing, Mr Shamplina said that the leading instigators responsible of setting up uninhabitable rooms are not just rogue landlords, but also tenants posing as landlords.

‘Landlord Action has never seen so many subletting cases as it has over the last two years, with an 18% increase. This has been fuelled by sky high rents preventing some tenants from being able to afford even single-unit accommodation, forcing many to resort to bedsits or shared accommodation,’ he noted.[1]

A recent North London subletting case handled by Landlord Action uncovered a home where partition walls were erected in order to create more bedrooms.. Most rooms were just large enough to fit a single mattress in, with the rogue tenant subletting each room for £750 per calendar month.

‘Cases like this are not only damaging to the property and financially devastating for landlords, but are also extremely unsafe, creating untold health and safety issues, particularly relating to fire safety and sanitation issues,’ said Shamplina, ‘They should also act as a reminder to landlords of the importance of carrying out thorough tenant referencing checks, as well as regular property inspections,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/eviction-specialist-warns-about-subletting-scams

 

 

Two New Custodial Deposit Schemes and Rogue Landlord Fund Announced

Published On: November 11, 2015 at 10:04 am

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Two New Custodial Deposit Schemes and Rogue Landlord Fund Announced

Two New Custodial Deposit Schemes and Rogue Landlord Fund Announced

The Department for Communities and Local Government has announced new measures for tackling rogue landlords and two new custodial deposit protection schemes.

The Deposit Protection Service (DPS) has been awarded a new license and from next year, there will be two new custodial schemes in England and Wales.

One will be operated by the Tenancy Deposit Scheme (TDS) and the other by My Deposits, both of which currently run insurance-based schemes.

The Department for Communities and Local Government also announced a £5m fund to assist up to 65 councils in combating criminal landlords. It believes that 3,000 rogue landlords could now face further enforcement action or prosecution.

Greg Clark, the Communities Secretary, claims the fund will help councils with a large proportion of their private rental housing stock, particularly beds in sheds.

Councils will be able to use the funds to increase inspections of properties, conduct more raids, bring more prosecutions and demolish illegal buildings.

Clark states: “We’re determined to keep the country building and increase the supply of good quality homes that families want, both to buy and for rent.

“Key to this is rooting out the minority of landlords in the private rented sector that let out poorly-maintained and unsafe properties to vulnerable tenants, making their lives a misery.”1 

According to the Department for Communities and Local Government, there are currently over 4.4m households renting privately.

Since 2013, almost 40,000 inspections have been conducted and more than 3,000 landlords are now facing further enforcement action or prosecution.

1 http://www.propertyindustryeye.com/two-new-custodial-tenancy-deposit-protection-schemes-announced/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord that Failed to License HMO Fined £20,000

Published On: November 6, 2015 at 2:11 pm

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Landlord that Failed to License HMO Fined £20,000

Landlord that Failed to License HMO Fined £20,000

A landlord in Plymouth has been fined over £20,000 for renting out substandard properties to 30 tenants, without obtaining a House in Multiple Occupation (HMO) license.

John Mayer pleaded guilty to four cases of failing to apply for a license to operate an HMO, as required by the Housing Act 2004. He also failed to comply with improvement notices that were served under the Housing Act, meaning that around 12 renters did not have adequate heating in their homes.

Mayer was fined a total of £23,000 and ordered to pay court costs of £1,554.38, to be paid at a rate of £2,000 per calendar month. Mayer pleaded guilty on 16th October 2015, but was sentenced on 30th October.

He was prosecuted by Plymouth City Council, as part of its ongoing campaign to combat rogue landlords in the city.

Councillor Chris Penberthy, Cabinet Member for Co-operatives and Housing at Plymouth City Council, comments: “We welcome this large fine, which sends a clear message that we will not tolerate rogue landlords here in Plymouth.

“We have some excellent landlords in Plymouth, but cases like this bring landlords into disrepute.”

He concludes: “Our plan for private rented housing aims to drive up standards in rented housing in the city, and this type of court case is just one of the tools we intend to use.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/plymouth-hmo-landlord-fined-20-000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord Fined £30,000 for Cramming 12 Tenants into Five-Person Home

Published On: November 5, 2015 at 1:59 pm

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A landlord in Watford who earned around £27,000 a year in rent has been fined £30,000 after pleading guilty to cramming 12 tenants into a five-person flat. Some of the renters slept in storerooms.

Landlord Fined £30,000 for Cramming 12 Tenants into Five-Person Home

Landlord Fined £30,000 for Cramming 12 Tenants into Five-Person Home

Zuo Jun He pleaded guilty to 11 offences against the Housing Act when he appeared at Watford Magistrates’ Court on Monday (2nd November 2015), including two of allowing more people to live in the property than were covered by his House in Multiple Occupation (HMO) license.

Officers from Watford Borough Council found 12 people living in the flat, situated above a Chinese restaurant. Some of the tenants were sleeping in rooms that were listed as storerooms on the HMO license.

The council reported that because there was no communal living space, tenants were in their rooms all of the time, despite there being no space to walk around. A family, including a seven-year-old child, shared one room.

The landlord was fined a total of £30,000 plus £5,326.54 in costs to the council, court costs of £150 and victim surcharge of £120. However, the maximum fines for the separate offences could have totalled £70,000.

The tenants only had one small kitchen, which was in a filthy state when inspected by the council, and the property’s fire exit was obstructed.

Zuo Jun He stated that he accepted £515 per week in rent for the property, equivalent to £26,780 a year.

The overcrowding was discovered when a tenant complained.

Dorothy Thornhill, the Mayor of Watford, comments: “Most landlords are excellent and we’ll always do our best to work with them, not against them. Those few landlords who flout the law and take advantage of vulnerable tenants out of greed will be targeted and we will take action against them.

“To help tackle this issue, I hope that magistrates will continue to make the penalties reflective of the money rogue landlords make out of abusing their position. As housing demand continues to increase, we’re going to see more of this across the UK – we need to act swiftly and decisively.”1

Recent data from the Environmental Health News reveals that between 2006-14, just 2,006 rogue landlords were convicted, resulting in total fines of £3m. However, many of those convicted were still operating as landlords.

The council ruled that Zuo Jun He can still work as a landlord, but will not receive a future HMO license. He has since evicted all of the tenants.

1 http://www.theguardian.com/society/2015/nov/04/watford-landlord-fined-12-tenants-five-person-flat

 

 

 

 

 

 

 

 

 

 

 

 

 

Rogue landlords in Hounslow fined £36,000

Published On: November 5, 2015 at 10:56 am

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A pair of West London landlords who collected rent from more than 30 tenants from sub-standard homes on the same street have been fined in excess of £36,000.

Mr Palminder Singh Sanghera and Mrs Nirmal Kaur were guilty of letting the properties in Ellerdine Road, Hounslow, fall below acceptable conditions.

The couple, who reside in Walton-on-Thames in Surrey, were fined £36,340 after they accepted more than 30 offences at Feltham Magistrates Court.

Tip-off

After responding to a tip-off, Hounslow Council’s housing enforcement team visited the properties and carried out an inspection of the properties in 2014. As part of their investigation, they found dumped rubbish, faulty fire alarms, blocked fire escape and disgusting kitchen conditions.

Rogue landlords in Hounslow fined £36,000

Rogue landlords in Hounslow fined £36,000

There were 30 people found to be residing in the homes, but the couple had not obtained the necessary HMO licences. Upon sentencing, the magistrates took into account the couple’s previously good behavior, the mitigation from their barrister and the measures they had taken to sort out the breaches in legislation.

Crackdown

Councillor Steve Curran of Hounslow Council, said, ‘the council is determined to crackdown on rogue landlords. These fines are a warning to landlords of the consequences of ignoring their legal obligations relating to HMO’s.’[1]

Curran went on to say, ‘there is no justification for putting people’s lives at risk and making them live in poor conditions. That’s why raising the standards of private-rented housing and bring rogue landlords to account is a priority for this council.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/hounslow-hmo-landlords-fined-36-000

 

Southwark Council’s New Tool Cracks Down on Subletting

Published On: November 3, 2015 at 3:20 pm

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Southwark Council, London’s biggest social landlord, has launched a new tool to crack down on illegal subletting.

The new website (www.ilatch.co.uk) is designed to identify landlords that profit from unlawfully subletting their council properties to naïve tenants. The site checks a home’s number and postcode and

Southwark Council's New Tool Cracks Down on Subletting

Southwark Council’s New Tool Cracks Down on Subletting

reveals whether the house or flat advertised to let is owned by the council or not.

If so, a report is immediately sent to Southwark Council’s fraud team for further investigation. The team has already discovered more than 1,000 properties in the past three years using data matching technology and tough occupancy checks.

At present, the crime costs the council thousands of pounds and puts its renters at risk of eviction if it is discovered that their property belongs to the council. Illegal subletting also reduces the amount of council homes being offered to genuine applicants.

Although the database is currently limited to council housing stock, Southwark Council plans to team up with housing associations, estate agents and local authorities across the country to form a greater deterrent for criminals.

Cabinet Member for Housing at Southwark Council, Councillor Richard Livingstone, says: “We want to make it as difficult as possible for anyone to illegally sublet in Southwark. Nationally, we’re recognised for our efforts to curb illegal subletting through data matching and vigorous tenancy checks.

“Now we are going further; catching fraudsters as soon as they try to let the property and preventing unsuspecting renters from the inevitable knock on the door from our fraud officers, followed by eviction.”

He adds: “With ever increasing pressures on council budgets, it’s absolutely vital that our limited housing stock goes to people in genuine need and not criminal landlords.”1 

Director of estate agent Garrett Whitelock, Lee Whitelock, comments: “We’re delighted to be one of the first estate agents to sign up to ilatch and join Southwark in its fight against illegal subletting. The growing demand for housing presents opportunities for unscrupulous landlords to exploit renters.

“With ilatch, we can now take proactive steps to weed out these fraudsters and work with responsible landlords to provide quality homes to renters.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/new-website-launches-clampdown-on-subletting-in-southwark