A landlord has been ordered to pay six tenants a staggering £44,358 after failing to properly license a nine-bedroom property in Granard Road, London. The decision was made by a First Tier Property Tribunal, which found significant failings in property management and health and safety compliance during the tenancy period between January 2022 and September 2023.
Tenants describe unsafe living conditions
The tenants detailed a litany of issues during the tribunal hearing, including non-functioning fire alarms in the kitchen, a lack of fire safety equipment or signage, and no valid gas or electrical safety certificates. They also reported persistent mould and damp problems throughout the property.
Adding to their grievances, it was revealed that Kswailem Ltd, the company linked to the property’s ownership, had not obtained the required House in Multiple Occupation (HMO) licence until October 2023—months after the tenancy period ended.
One tenant described their experience: “Living there felt unsafe, especially knowing there was no fire safety in place. We paid rent expecting at least the basic standards to be met.”
Tribunal criticises landlord’s conduct
The judge presiding over the case highlighted the seriousness of operating an unlicensed HMO, particularly the risks it poses to tenant health and safety. “Failure to license leads—or can lead—to significant health and safety risks for often vulnerable tenants,” the judge said. He emphasised that penalties serve as both a deterrent and a reminder to landlords to take licensing seriously.
Kswailem Ltd, the registered owner of the property, was criticised for its lack of engagement in the tribunal proceedings. The judge noted, “The second respondent hid its identity by not being a party to the tenancy agreements and then did not engage with these proceedings. This, in our view, increases the starting point from 70% to 80% of the maximum amount of rent repayable.”
Each tenant was awarded compensation ranging from £5,673 to £8,313, with an additional £820 granted to cover legal costs.
Implications for landlords
This case underscores the importance of compliance for landlords, particularly in managing HMOs. Delays in securing proper licensing can result in hefty fines and reputational damage. The tribunal’s ruling serves as a stark warning to property owners who might attempt to bypass licensing requirements.
As the judge remarked, “Sanctions for failure to license have an important deterrent effect on future offending, encouraging law-abiding landlords to continue to take the licensing system seriously and inspiring public confidence in the system.”
The decision raises broader questions about the enforcement of licensing laws and the responsibilities of landlords in maintaining safe living conditions. For UK landlords, it’s a reminder that cutting corners can lead to costly consequences – not just financially, but in tenant trust and safety standards.
