Estate agency overturns ‘excessive’ fine from London council
Home London appealed against the Tenant Fees Act penalty from Barnet Council which claimed it had failed to pay back all of a holding deposit.
A London estate agency has successfully overturned a £5,000 fine imposed by a council that claimed it had not paid back a holding deposit.
Home London Ltd, which is run from a residential address above a balloon shop in Camden, appealed against the penalty set by Barnet Council arguing the case wasn’t proved, and it was “excessive and disproportionate” anyway.
The estate agency said a holding deposit of £500 had been credited against the amount paid upfront by the tenants when they took a flat in Woodstock Road, Golders Green (main picture) in 2022.
Financial penalty
Tenants Sameneh Ghadami and Bahram Seifollahzadeh paid six months’ rent or £8,700 in advance plus £1,450 deposit totalling £10,150. The holding deposit was credited against the sums due leaving a balancing payment of £9,650.
But Barnet had said Home London breached the Tenant Fees Act 2019 by only paying back £350 out of the £500 deposit.
In August 2023, the council served a Notice of Intent to Issue a financial penalty alleging only £150 of the holding deposit had been returned to the tenants. And then in April this year, a Final Notice was issued imposing a financial penalty of £5,000.
Failed to prove
But the residential property tribunal found in favour of Home London because the council had failed to prove its case. Judge Tagliavini said: “In conclusion the tribunal finds the respondent [Barnet Council] has failed to prove an offence as alleged has been committed by the applicant [Home London Ltd].
“In any event, the tribunal finds the amount of financial penalty imposed excessive and unreasonable.”
