Letting Agency Fined £14,000 for Renting Property with Serious Safety Hazards
A letting agency based in Derby has been fined £14,000 after renting out a property with significant safety hazards that endangered vulnerable tenants.
The case, heard at Southern Derbyshire Magistrates’ Court, involved a flat on Osmaston Road, which was found to have serious structural issues, including a compromised flat roof and risks of collapse.
The property had been subject to a Prohibition Order issued in August 2023 under the Housing Act 2004, which barred its occupation due to these safety concerns.
The property in question had been converted without the necessary certified building work, and tenants living there at the time were rehoused by Derby Homes. Despite the order, the flat was re-let in 2024 while the safety hazards remained unresolved.
A routine inspection in August 2024 uncovered the ongoing issues, leading to a criminal investigation. It was found that rent had been collected for the property for eight months after the Prohibition Order had been issued, violating the order’s terms.
Steadwall Properties Limited, the letting agency responsible for the property, admitted to permitting occupation of the prohibited property, which is an offence under Section 32 of the Housing Act 2004. The company was fined £21,000, reduced to £14,000 for an early guilty plea, and ordered to pay £1,750 in costs.
What This Means for Landlords:
This case highlights the importance of adhering to safety regulations and Prohibition Orders. Failure to comply with these can lead to hefty fines and legal consequences. For landlords and property managers, it serves as a reminder to ensure all safety measures are in place and that any orders or notices regarding property safety are followed promptly.
The court stressed that by allowing tenants to occupy a property with known risks, Steadwall Properties had “recklessly placed vulnerable tenants at risk of considerable harm.”
EMPO encourages all landlords to regularly check the condition of their properties, stay up to date with legal requirements, and always take necessary action to address safety issues. If in doubt, professional advice should be sought to ensure compliance with health and safety standards.