A landlord and a major letting agent in Manchester have been ordered to pay nearly £40,000, after Manchester City Council prosecuted them for breaching regulations for Houses in Multiple Occupation (HMOs).
After repeatedly pleading not guilty in court, Rashpal Singh, 48, changed his plea and was found guilty of multiple offences at the property he rented out, situated on Great Western Street, Moss Side.
Singh – of Cornhill Road in Urmston, Greater Manchester – was fined £11,000 for managing a HMO property without a licence and for failing to comply with the regulations of the HMO licensing legislation.
Singh was also ordered to pay court costs to the council of £4,552.20, along with a £120 victim of crime surcharge – a total court order of £15,672.20.
Through a city council application to the Residential Property Tribunal for a Rent Repayment Order, he was also subsequently told to repay £11,884.33 of Housing Benefit he had received for tenants.
The letting agent H4U Group Ltd – also known as Homes4U – was found managing two unlicensed properties on Whiteoak Road in Withington, Greater Manchester.
Pleading guilty to the offence, the H4U Group Ltd was fined £7,000 for both unlicensed premises and was told to pay £2,825.41 costs.
Landlords found to be operating without a licence can also be ordered to repay up to 12 months’ rent.
Council officers were alerted to the property, which is situated above a shop, after a small fire broke out in the kitchen.
Following the fire, the city council carried out a joint inspection with the fire service and found the property was tenanted without the required HMO licence, had dangerous electrics, defective smoke alarms. It was also found that the kitchen – a high-risk room – was the only escape route for the eight tenants.
Council officers were alerted to the failure of H4U Group Ltd to obtain a licence, after a tenant of one of the two properties complained to the city council about the lack of fire alarms. On visiting, it was found that both properties were three-storey HMOs. Licences are mandatory for properties with five or more unrelated people who share a property comprising of three or more storeys.
The legislation is in place to ensure minimum safety standards – including fire safety and gas safety – for shared houses.
Manchester City Council says it has successfully pursued prosecutions against several landlords this year, with fines from the Magistrates’ Court and the Residential Property Tribunal totalling £65,819.93.
Deputy Leader for Manchester City Council, Councillor Bernard Priest, said:
“I’m pleased to see the decision by the Residential Property Tribunal ordering the repayment of Housing Benefit – which highlights the untenable situation of taxpayers’ money going to unscrupulous landlords who think they can let sub-standard housing.
“Nationally, £1.5 billion is paid annually to private landlords in Housing Benefit payments.
“Our message to landlords is simple – bring your property up to standard, make sure your tenants are safe and get a licence where the law requires one.
“These latest court orders also carry a message to managing agents that you aren’t free from prosecution. You have a responsibility to your tenants to provide good quality, safe housing.”
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