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Agent fined thousands after trying to avoid redress scheme

A £5,000 fine has been upheld against a landlord who failed to declare himself as a property agent and did not join a mandatory redress scheme.

Farrukh Faheem was fined by Welwyn Hatfield council in Hertfordshire in October 2021, after he did not become a member of a government administered redress scheme under The Redress Schemes for Lettings Agency Work and Property Management Work Order 2014.

Faheem appealed the fine with the General Regulatory Chamber, claiming to be a guarantor and not an agent, but his appeal was unsuccessful.

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"The duty to enforce consumer protection laws will not be served by imposing derisory penalties. In all the circumstances, I am satisfied that that appropriate penalty is £5,000” said Upper Tribunal Judge Rintoul.

And a council spokesperson says: “The judgement highlights the hard work and correct approach of the council’s private sector housing team and reinforces its determination to ensure that all local property agents are members of a redress scheme.

"Membership benefits them as well as residents who privately rent in the borough.

"Anyone who falls within the legal definition of the letting agent or manager is encouraged to immediately join if they are not already a member and avoid similar consequences."

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