London’s councils hit landlords with record fines

Councils in London are tightening their grip on landlords and letting agents who fail to comply with selective licensing rules as fines have already broken through the £10 million barrier this year, research reveals.

This surge comes alongside a predicted record number of new licensing schemes aimed at improving tenant rights and housing standards.

A report by prop-tech firm Kamma reveals that 2024 is set to outpace 2023’s record of 32 new licensing schemes.

This year has seen 19 schemes and consultations launching across the UK – that’s nearly a third higher than this time last year – with London boroughs leading the charge.

‘Surge in fines and licensing measures across London’

The firm’s chief executive, Orla Shields, said: “The surge in fines and licensing measures across London are clear indicators of the growing seriousness with which regulatory compliance is being treated.

“This year’s record-breaking figures represent a strong stance against non-compliance for agents and landlords in London.”

Kamma says that this month alone see the councils in Brent, Tower Hamlets and Redbridge implementing additional measures to tackle private rented sector (PRS) issues.

It tracks fines through the Mayor of London’s database to monitor enforcement efforts.

Landlords hit with more than £1.2 million in penalties

The firm says that Tower Hamlets stands out with landlords being hit with more than £1.2 million in rent repayment orders and financial fines because they had unlicensed properties.

And Redbridge’s enforcement efforts against landlords have seen it serve 3,000 notices and pursue 76 prosecutions under its previous scheme.

Camden remains the borough with the highest fines, however, and recently imposed a hefty £350,000 penalty on a lettings agency for non-compliance with a planning enforcement notice.