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London council issues record £480k fine to illegal HMO
Kensington and Chelsea Council issued a fine of £480,000 to a landlord and property management company operating an unlicensed house in multiple occupation (HMO) that put tenants at risk.
Blackstone Properties Management Limited and its director Mohamed Ali Rasool were fined £240,000 each, plus costs for several breaches of HMO management regulations in the Housing Act, which the council suspects is the highest fine rate for the offence so far.
The inside of the 22-bedroom property was so damp that mushrooms were growing in upper floors, and there were burnt-out electrical sockets, covered smoke alarms and damaged fire doors.
The prosecution was brought after a dawn raid in 2021, where the council found multiple fire and mould risks to tenants at the property.
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The council launched an investigation after a complaint from a tenant in 2020, which revealed that the landlord was unlicensed to operate the 22-bedroom, house share style property.
Despite repeated warnings, the landlord did not apply for a licence and the council met with the Metropolitan Police and the London Fire Brigade.
Officers found defective and damaged fire doors, inadequate fire separation between bedrooms and protection in the boiler room or lobby, covered fire alarms, and burnt-out and loose electrical sockets.
Tenants were cooking in their room using camping-style facilities without proper kitchen facilities.
There was rising damp and mould growth throughout the property and single-glazed windows with rotten frames, draughts and broken sashes.
Cem Kemahli, lead member for planning and public realm, said: “Let this judgement be a clear lesson to other landlords and agents – if you are offering poor-quality accommodation we will find you and will come after you.
“We want the best homes in the Royal Borough of Kensington and Chelsea. Our landlord licensing schemes are seeking out the bad operators to ensure safer homes for everyone and a fairer market for good operators.
“Privately rented homes form a crucial part of our housing mix but they must be up to scratch. Our teams stand by to help and assist landlords in answering concerns or offering suggestions about how to improve your properties.”
The council recently introduced an additional licence for HMO landlords operating house and flat shares with three and four tenants, to improve standards in HMOs of all sizes.
Since June, 400 landlords have applied for the new additional licence.
Inside Housing has attempted to reach the management company for a response.
At the end of last month, ministers revealed that they would push ahead with plans to ensure HMOs are valued as a single property for council tax, despite concerns raised by local authorities over a loss of income.
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