Haringey (Parliament Politics Magazine) – Haringey borough tenants received a £10,797 rent refund after landlord Ashok Patel failed to license a house in multiple occupation (HMO) in Muswell Hill.
On August 29, 2020, Patel leased the house to the tenants for £1980 a month under an assured shorthold tenancy (AST).
However, on May 27, 2019, the London Borough of Haringey unveiled a new licensing program that essentially expanded licensing to include all HMOs with three or four occupants.
Patel submitted an application to the council in May 2021, but the tribunal discovered that he had applied for the wrong license.
According to the Housing Act of 2004, this rendered the HMO unlawful.
The Tribunal report read:
“On the evidence before it the Tribunal finds that Mr Patel had completed the online form incorrectly (so that it appeared that it was a selective licence that the Respondent was applying for) and that he chose to ignore the assistance offered by Haringey to amend his application and the warnings sent to him that he had not completed an application, choosing to rely on the mail of November 27 which stated that nothing seemed to be wrong with the application.
The Tribunal finds that in light of the subsequent e-mails from Haringey Mr Patel should have looked more closely at his original application but he does not appear to have done so.”
On May 13, 2024, the Tribunal ruled that Patel was required to pay £10,767.90, or 65% of the rent that was paid.
What are the penalties for landlords who fail to comply with HMO regulations?
Renting out an HMO without a license is illegal and carries a lifelong fine. In reality, these fines frequently vary from £10,000 to £40,000 or more for each infraction.
If their landlord runs an unregistered HMO, tenants may seek RROs. Tenants may use this to recover up to a full year’s worth of rent that was paid during the non-compliance period.
Civil penalties, which were first introduced by the Housing and Planning Act of 2016, give local governments an affordable alternative to going to court to compel compliance.
These fines, which are frequently utilized in place of prosecution, can amount to up to £30,000 per infraction.
Repeat offenders risk having their ability to rent properties in the future restricted by banning orders.
If landlords disregard safety regulations or licensing requirements, local authorities may take over management of an HMO.