A landlord has been ordered to pay over £43,000 after breaching planning controls and failing to comply with enforcement notices relating to an unauthorised property extension in Putney, London.
The case, involving Charles Margulies of BMR Hemini Ltd, highlights the risks landlords face when expanding rental portfolios without following due planning procedures. Despite the hefty fine, the incident offers valuable lessons for landlords looking to expand their property businesses legally and successfully.
Wandsworth property extension leads to costly legal battle
BMR Hemini Ltd, which manages over 200 properties across London, acquired a house in Putney in 2022. Seeking to increase rental income, the company built a substantial extension to transform the property into a House in Multiple Occupation (HMO) without submitting a planning application.
Following complaints from neighbours, Wandsworth Council issued a retrospective planning application refusal and served an enforcement notice requiring the demolition of the extension. BMR Hemini appealed the decision but continued to rent out the property while awaiting the outcome.
When the Government Inspector dismissed their appeal, the company claimed they could not comply with the enforcement notice, as the extension was occupied by a tenant. The council initiated prosecution proceedings for non-compliance under the Town and Country Planning Act.
The company only began to demolish the extension nine months after the enforcement notice deadline, following a court summons.
Court imposes hefty fine for planning breach
On 24 March 2025, Wimbledon Magistrates Court convicted Charles Margulies and BMR Hemini Ltd for failing to comply with the enforcement notice. The court ordered them to pay:
- A £16,000 fine for the planning breach
- The council’s legal fees of £23,554
- A victim surcharge of £3,600
The judge criticised the company for knowingly allowing tenants to occupy the extension despite the enforcement notice.
Speaking on the case, Simon Hogg, Leader of Wandsworth Council, remarked: “All of the actions from this landlord clearly show that they cared more about rental income than following the rules. The outcome of this case sends a clear message that we will not tolerate breaches of planning control in Wandsworth which ignore the impact such actions have on neighbours.”
While this case highlights the consequences of neglecting planning controls, it also demonstrates the importance of working within the law to expand rental portfolios.
Landlords looking to boost their rental income by converting properties to HMOs must ensure they follow the appropriate planning application processes. Failure to do so can result in costly legal battles, fines, and damage to reputation.
(Picture: Wandsworth council)
