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Repair-shy landlord handed whopping £35K penalty

Hyde Park Mansions

A landlord with a large international property portfolio exposed his tenants to poor and dangerous conditions in an unlicensed HMO.

Benjamin Lam was told to pay a £35,813 Rent Repayment Order to his four tenants after a First Tier Property Tribunal judge ruled that his ignorance of licensing law was “not inadvertent but deliberate”.

The tribunal heard that the landlord determined liability for any repairs on the ‘user pays’ principle. When the boiler stopped working in March 2023, Lam told his tenants to pay for their own repairs, stating, “This high maintenance cannot go on. This is not a serviced apartment.”

Declined

He repeatedly declined to carry out repairs, meaning that the tenants had to do some themselves at their own expense and Lam was reluctant to compensate them. When he visited to inspect the property in Hyde Park Mansions, Transept Street, London, in August 2023, he regarded this as a goodwill gesture, not the consequence of any legal obligations.

A Westminster Council inspection in November 2023 found Category 1 hazards of damp and mould growth, excess cold and fire. The tenants also complained that Lam intended to keep their deposits in his own account before they insisted that these be held in an approved scheme.

Abroad

Lam, who is based abroad, has a large international property portfolio with more than £50 million in assets through his companies. He admitted the property had been let without a licence but claimed this was an oversight and that he relied on his agents who neglected to inform him of the requirements.

However, the judge said Lam had the resources to ensure the person managing his UK properties was familiar with local law and regulations while having the knowledge and experience to know that such arrangements were essential.

He added: “His tenants…have been exposed to poor and dangerous conditions which were prolonged by his ignorance and the failure to licence. That ignorance was not inadvertent but deliberate.”

Tags:

Rent repayment orders
Hmo licencing

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