Large portfolio landlord Charles Margulies has been fined £43,000 after he failed to obtain planning permission for an extension on an HMO property (main image) and did not demolish it.

Through his company, BMR Hemini Ltd, Margulies operates over 200 properties across London with a business model which specifically focuses on buying residential properties and converting them into Houses in Multiple Occupation (HMOs).

Squeeze in more tenants

In 2022, the company purchased a house in Putney and, without applying for planning permission, built an extension on the back of it so it could rent it to more tenants.

After neighbours lodged a complaint with Wandsworth Council, a retrospective planning application was made but refused and an enforcement notice was issued requiring demolition.

According to the Council, the company proceeded to place tenants in the property and then lodged an appeal, complaining it could not comply with the enforcement notice and demolish the extension as it was now occupied by a tenant.

The appeal was dismissed by the Government Inspector and the Council started prosecution proceedings for failure to comply with an enforcement notice – an offence under the Town and Country Planning Act.

All of the actions from this landlord clearly show that they cared more about rental income than following the rules.”

It was only following a court summons, however, that BMR Hemini Ltd began to take action to demolish the extension – nine months after the original deadline.

But due to the negative impact the ordeal has had on neighbours, the Council decided it would continue with the prosecution and, on 24th March 2025, both Charles Margulies and BMR Hemini Ltd were fined £16,000 by Wimbledon Magistrates Court and ordered to pay the Council’s £23,554 legal fees,  plus a victim surcharge of £3,600.

Leader of Wandsworth Council, Simon Hogg, said: “All of the actions from this landlord clearly show that they cared more about rental income than following the rules. The outcome of this case sends a clear message that we will not tolerate breaches of planning control in Wandsworth which ignore the impact such actions have on neighbours.”

Picture courtesy of Wandsworth Council.