A London council which is consulting on extending its HMO licensing scheme has secured what is believed to be a record fine and costs against a landlord for a cool £280,000.
David Kohali turned an outbuilding at a property in Holloway into six small flats around six years ago. In 2009 Islington council ordered him to stop using it for flats because of their small size.
Kohali then entered into a four year exchange with Islington council during which he repeatedly ignored enforcement notices and continued letting the flats.
In 2013 the council began proceedings for a confiscation order under the Proceeds of Crime Act, relating to money made by illegally renting out the unauthorised units.
Now Kohali has been ordered to pay £280,000 in total, including £190,000 in fines, council costs of over £15,000 and a confiscation order of £76,562.07. He has 28 days to pay - and failure to do so could lead to him being jailed.
Islington is now consulting on its policy of introducing additional licensing for HMOs. The consultation will close on January 9 with a decision by the full council expected in February.
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Comments
Kristjan - good idea re: CPO and conversion. At least something good will become of the whole situation.
The sad things is- if he was getting just 150 pw per flat (and he was probably getting more) then over 6 years this adds up to 280,800- so worst case scenario he pays back what he has earned. Surely he should have to return all this rent to the Tenants he illegally claimed it from AND pay the fines. Slum Landlords will keep on slumming it until councils and government take serious action. How about- seize the building under a CPO and convert it in to legitimate affordable housing of 4 flats Just an idea!