Letting agency’s HMO fine puts property managers on high alert

Property managers will be on alert after a Belvoir branch was fined for failures in management of an HMO, despite appealing the decision.

The Property Tribunal reduced the original fine by more than £2k, but still ordered Belvoir Nottingham Central to pay £1,788.

A failure to secure a licence for an HMO in Alderney Street, Nottingham, led to the higher penalty being imposed on Belvoir by Nottingham City Council.

But the tribunal found there were some mitigating circumstances in the case, which helped to explain why Belvoir didn’t get the licence.

“We find that BNC committed an offence under section 95 of the Act between the dates 1 July 2021 and 3 November 2021. We vary the financial penalty imposed by NCC to the sum of £1,788.20,” the tribunal said.

Lack of knowledge

“Our view is that failure was a lack of knowledge or training on the part of the office staff, and a lack of adequate systems to bring legal risk to the attention of the directors of BNC (Belvoir Nottingham Central).

“We do not consider that there was a deliberate flouting of the licensing law, or that BNC was reckless in relation to its legal obligations.”

The tribunal also said: “The only aggravating factor relevant, in our view, is that poor management practice is indicated, this again being in respect of the failure to put adequate risk management practices in place and to ensure that staff are fully aware of the law.

“So far as mitigating factors are concerned, we agree with NCC that some reduction in the financial penalty is appropriate to reflect the lack of hazards at the property, eventual compliance with statutory notices, and existence of the required certification to show that installations at the Property were in a safe working condition.”