Fines and prosecutions Estate agent fined over ‘inadequate’ fire precautions


NEWS


THE PROSECUTION of SDV HQ Limited (SDV) – trading as Sterling De Vere – saw it receive ‘one of the largest ever’ fines handed to an estate agent. Tower Hamlets Borough


Council reported on its prosecution of SDV in relation to a property on Ligonier Street in the borough, which was a three bedroom former council property that had been sold, and at which the owner had ‘entered into a guaranteed rent arrangement’ with SDV. The house had been converted into a five bedroom house in multiple occupation (HMO), which could accommodate up to six people sharing bathroom, toilet and kitchen facilities. In order to ‘maximise the rent’


charged, the living room was also changed into a bedroom and another of the rooms was divided into two bedrooms, with the monthly rental income received by SDV totalling £3,520. Officers from the council’s environmental health and trading standards department visited the property – Benson House – in spring 2017 ‘as part of an operation to track down unlicensed rented properties’, making contact with residents. The residents complained


to the officers about the living conditions, and stated that SDV as their landlord had ignored their requests to carry out repairs. On inspection in June


2017, the officers confirmed the HMO had operated for nine months ‘without the required licence’, and that ‘there were too many occupiers for the facilities provided’. In turn, one room ‘lacked any means of heating and did not meet council space standards’. In addition, fire precautions


were described as ‘inadequate’, while the boiler was ‘leaking and malfunctioning’ and there were ‘insufficient’ rubbish bins as well as broken sash cords for windows. The prosecution of the company saw it plead guilty to failing to apply for a landlord licence and breaches of safety regulations, with a fine handed down of £46,620 plus costs of £7,000, which the council said was ‘one of the largest sums ever awarded against an estate agent’. These charges related to


five offences under the Housing Act 2004, and in sentencing the company, District Judge Clark stated that the ‘overheated housing market’ has meant that affordable accommodation ‘is in very high demand’, so tenants ‘have little choice but to accept sub-standard accommodation and undersized rooms’. He added that the licensing requirement ‘should have been obvious’ to SDV, noting that if the council hadn’t attended, the property ‘may still not be licensed’. John Biggs, Tower Hamlets’


mayor, stated: ‘I want to pay tribute to the great work that our


Environmental Health & Trading Standards teams do to protect tenants. This case shows our determination to prosecute even the biggest landlords who flout the rules. 'We are driving up standards in the private rented sector through our Private Renters Charter, and landlord licensing scheme. I urge the Government to give us the powers to extend landlord licencing across the whole borough.’ Sirajul Islam, statutory deputy


mayor, added: ‘I am delighted with the outcome of this case. This large fine sends a clear message to all landlords, large and small, who have avoided licensing or are delaying their licence applications, that they are taking a huge risk. The many responsible landlords who have come forward to license their properties and are doing their best to comply with the law can be confident that the Council will take strong action against their less scrupulous competitors who try to avoid their responsibilities. I applaud our trading standard officers who took this action.’ In conclusion, the council


noted that ‘as a result of this case’, it is ‘using the licensing regime to closely monitor SDV’s activities’, with the company ‘issued with probationary licences’. In turn, any licensed property that the company manages ‘is being inspected’


www.frmjournal.com NOVEMBER 2018 11


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