City & Suburban Properties Ltd, a London-based property company, has been ordered to repay nearly £20,000 in rent to three tenants after failing to license a rental property as a House in Multiple Occupation (HMO). The tribunal’s decision highlights the severe consequences of neglecting legal obligations and property maintenance in the competitive London rental market.
The property in question, located on Fordwych Road in West Hampstead, fell under the HMO licensing scheme required by Camden Council. Despite this, the property remained unlicensed from 2021 until February 2024, a breach that only came to light after the company repeatedly failed to address significant maintenance issues, including a leaking roof that forced one tenant to temporarily vacate the property.
At a hearing before the First-Tier Tribunal, representatives from City & Suburban Properties acknowledged the oversight, with counsel admitting there was “no reasonable excuse” for the failure to secure the necessary HMO license. Darren Yanover, director of Cedar Estates, the managing agent, accepted full responsibility, offering sincere apologies for not identifying the licensing lapse sooner.
The tribunal’s findings were particularly critical, noting that both City & Suburban Properties and Cedar Estates were experienced in property management and well-aware of London’s stringent HMO licensing requirements. The tribunal described the failure to secure a license as an “act of recklessness,” especially given that the unlicensed period included several new tenancies.
Adding to the firm’s woes were ongoing issues with water leaks and mould, which plagued the tenants throughout their occupancy. The problems began in August 2023 with a leak through a skylight, which led to mould buildup and further leaks in subsequent months. Despite repeated repairs, the issue remained unresolved by the time the tenancy ended in February 2024.
While City & Suburban argued that they had made considerable efforts to resolve the water ingress, including navigating challenges with another freeholder and difficulties in securing reliable contractors, the tribunal was unconvinced. It ruled that the persistent disrepair and the failure to license the property were serious enough to warrant substantial rent repayment.
Ultimately, the tribunal ordered City & Suburban Properties to repay £19,753 to the tenants, representing 75% of the total rent paid during the unlicensed period. This figure was slightly reduced to reflect the company’s previously good standing as a landlord. The firm was also required to reimburse the application and hearing fees, totaling an additional £300.
This case serves as a stark reminder to landlords and property managers of the importance of adhering to licensing laws and maintaining properties in a state fit for habitation. The full details of the tribunal’s ruling can be found on the official Camden Council website.
