Landlords and agents in London see a big rise in licensing fines

Landlords and agents in London see a big rise in licensing fines

10:28 AM, 13th April 2023, About 11 months ago 8

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London’s councils look set to double the amount in fines they collected from landlords and agents last year under selective or additional licensing schemes, one company is reporting.

Geospatial tech firm Kamma says that in the last three months, landlord and agent fines have increased by £500,000 with London’s fines now reaching £8.6 million.

The firm says that the 50% increase in enforcement rates means that 2023 will be the biggest year on record for fines being imposed.

In the capital, two-thirds of councils now operate at least one selective or additional licensing scheme as post-pandemic enforcement increases.

‘A new record increase in fines and enforcement’

The firm’s chief executive, Orla Shields, said: “Every month, Kamma reports a new record increase in fines and enforcement seen in the private rented sector (PRS), and the start of 2023 is no different with an increase of half a million pounds in fines seen in just three months suggesting that 2023 might become the biggest year on record for fines.

“This month Kamma has published a licensing report that summarises all the trends seen in the PRS, including property licensing, enforcement and licensing fines in the last three months.”

She added “We hope this report will provide agents with a good understanding of the current licensing landscape and help keep them up to date with new licensing scheme developments.”

Total fines for landlords and letting agents in London

The firm says that the total fines for landlords and letting agents in London has crossed the £8.6 million mark for the first time.

And it is the only company to track the Mayor of London’s ‘Rogue Landlord and Agent Checker’ to deliver analysis of enforcement trends across the capital.

In the last three months, the total value of fines for letting agents and landlords has increased by more than half a million – from £8,157,745 in December to £8,668,895 in April 2023.

An average increase of more than £167,000

Since the start of 2023, Kamma has reported an average increase of more than £167,000 in fines every month.

Camden continues to top the council enforcement list in terms of the number of cases brought forward, followed closely by Newham and Waltham Forest.

But the London Borough of Hammersmith and Fulham still has the highest average value of fines per case at £19,800.

The increase in fines is largely due to increased enforcement efforts seen across the council and capital.

Kamma says that eight new licensing schemes have already been launched this year, with at least five more planned to start in the next three months.


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Comments

Adam Smith

12:38 PM, 13th April 2023, About 11 months ago

It would be interesting to know what the landlords are being fined for, and the level of fines the various misdeeds attract. I am currently planning how to minimise the financial penalty for getting out of the PRS and such stories will hasten the exodus.

Judith Wordsworth

13:04 PM, 13th April 2023, About 11 months ago

Thank goodness London Borough of Croydon are not allowed (government decision) to reintroduce a Selective Licensing scheme.

Also they have just received a 3rd bankruptcy notice!

Mick Roberts

14:14 PM, 13th April 2023, About 11 months ago

Reply to the comment left by CAS at 13/04/2023 - 12:38
Exactly Cas, the more Landlords hear all these bad Anti-Landlord things, the more Landlords pack up.

No wonder London got the homeless problem it has. Tell u what, let's go fine them people that provide homes for the people that we can't help. That should alleviate the housing shortage shouldn't it. Not the brightest of people running these Council & Govt housing departments. Making me only educated to 16 year old school standard, look like Einstein of housing. Tell u what, let's swap the Housing Minister again to someone who has never housed anyone in his life-That'll do the trick.

Gestapo Fodder

14:42 PM, 13th April 2023, About 11 months ago

It's getting more serious since Grenfell. They are just covering their backs by acting like the Gestapo.
I've had an HMO sot 20 years, the last 15 under licence. They granted the licence again last year with no conditions, having insisted that I install emergency lighting along with the gas, electricity, and alarm certificates. Having granted the licence renewal they THEN followed it up with demands that I replace self closing fire doors with glass ones so tenants could see when escaping a fire! They even went to the house and interviewed the tenants!
I suggested that their requests were unnecessary, but on the basis of the Inspector's subjective opinion that
the tenants would not help each other in an emergency they threatened action were I not to have the work done.
This made up my mind to get out of renting. I have given 5 people notice and the house is for sale as a private dwelling house.
Councils should be working with Landlords, not against them. They deliver a vital service to the community which these left wing idiot landlord haters do not understand. Landlords rise up against these damn people. They must be challenged!

Crouchender

15:25 PM, 13th April 2023, About 11 months ago

With 160+ regulations and HHSRS rating used during inspection. They are guaranteed to generate income/profit for the council for even minor issues that may have been overlooked by any innocents (i.e Non-Rogue) LL (95% of us). Remember so called rogue LLs never apply for a licenece that's why you hear about the big dramatic fines.

This is too lucrative for them to give up so when the property portal comes in they will have blanket right to visit any property to check with clip boards and PCNs ready to be issued.

I have one property to be selectively licensed and I am dreading the spotty left wing graduate going all power crazy (/jealous) with their over zealous assessments. I will probably use the services of LL defence for an assessment so I can be forearmed before the formal licensing is launched.

LaLo

18:43 PM, 13th April 2023, About 11 months ago

Come on - be fair - since government subs have gone - councils have to get money from somewhere poor things - especially the top earners!

blair

20:48 PM, 15th April 2023, About 11 months ago

The figures are alarming. The licensing schemes are supposed to be non-profit thus what are they doing with the monies. Am I wring on this please?
I was annoyed when one time I reported a unlicensed flat they claimed a finders fee as well as the usual fee. BUT they said they get the finders fee not me!
So if they are non profit where does these extra unbudgeted funds go - more staff
interesting to know what the fines were for. I suspect a lot are for non registering.
In my Brough I as aware of a major enforcement action of a rented property and bad landlord etc etc but all the spade work and direct action was undertaken by environmental health and Planning departments. All the licensing department seem to have done was pass on the issues and breaches to other departments they just were the introductory agent/.

blair

20:53 PM, 15th April 2023, About 11 months ago

Reply to the comment left by LaLo at 13/04/2023 - 18:43
Lalo
as far as I know the licensing department is supposed to be non profit making They have a budget and that is how the fee is determined.
It does beg the question of where does all this extra money go. - refunds reduction in future licensing fees???

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