We are pleased to report a significant victory for our client in an appeal against HMO licensing fines, successfully litigated by Luke Gittos of Murray Hughman. The case concerned a series of fines issued in relation to the management of multiple properties accommodating care home staff.
The local council had alleged that our client was operating as a commercial landlord and had failed to comply with the requirements of the House in Multiple Occupation (HMO) licensing regime, suggesting a profit-driven motive behind the breaches. However, following a contested hearing, the Tribunal accepted key arguments advanced on our client’s behalf and made substantial findings in their favour.
What is the HMO Licensing Regime?
Under the Housing Act 2004, properties occupied by three or more tenants forming more than one household and sharing facilities such as a kitchen or bathroom may require an HMO licence. The licensing regime is designed to ensure that landlords maintain suitable standards of safety, management, and living conditions for tenants.
Local authorities have powers to issue civil penalties of up to £30,000 per offence where landlords are found to be operating HMOs without the necessary licences or in breach of licence conditions. These fines are often issued without a prior court hearing, but landlords have the right to challenge them through the First-tier Tribunal.
The Outcome of the Appeal
In this case, the Tribunal found that the council had failed to properly account for the context in which the properties were managed. Importantly, the Tribunal accepted that our client’s role was not driven by commercial gain, and that the breaches were not as serious as the council had alleged. As a result, each fine was reduced by 30%.
This decision is a clear reminder that councils must approach the HMO licensing regime with care and proportionality, and that landlords facing enforcement action are not without recourse.
At Murray Hughman, we have extensive experience in challenging local authority enforcement decisions and advising landlords on their regulatory obligations. If you have received an HMO fine or are facing enforcement action, please get in touch to discuss how we can help.
Luke Gittos instructed Guy Ladenburg of 3 Raymond Buildings as counsel.
