A London landlord has been ordered to pay an unprecedented £75,000 plus costs after breaching planning regulations by illegally converting two residential flats into short-term rental properties.

The case involved two flats at Grove Road, North Finchley, which were managed by George Nathanel on behalf of Zenobia Properties.

They were granted planning permission by Barnet Council in January 2016 to be used as ‘self-contained, single household’ homes, but were instead being advertised on platforms including Airbnb and Booking.com for short-term rentals to large groups who often used the accommodation for parties.

Disturbances

As the party wall was not soundproofed, neighbours complained of significant disturbances which continued into the early hours of the morning. One neighbour described it as ‘stressful and devastating’, claiming it had a ‘detrimental impact on his life, his work and mental health’ and ‘had severely impacted his ability to sleep and has made living in the property unbearable.’

Following the complaints, Barnet Council’s planning enforcement team inspected the properties and discovered both flats had been converted for commercial use without proper planning permission.

Nathanel was subsequently issued a Breach of Condition Notice by Barnet Council to cease use of the properties for short-term rentals. After failing to comply, he was then summoned to Willesden Magistrates’ Court.

Claiming he was living in Russia with his children and was awaiting an operation, he did not attend the hearing. In earlier correspondence with the council, though, he had sought to shift blame to what he described as ‘long-term tenants’ and claimed he was unaware of any short-term rentals via Airbnb and Booking.com.

Contrary

Evidence provided by the prosecution, however, showed at least 220 days of occupancy across the two flats in the first 10 months of 2024. Under London planning regulations, properties can only be used for short-term lettings for a maximum of 90 nights per calendar year without specific planning permission – so Nathanel’s operation was more than double the legal limit.

Nathanel was found guilty of failing to comply with the requirements of a Breach of Condition Notice issued by the council and ordered to pay a fine of £75,000 plus council costs of £5,400. A victim surcharge of £2,000 was also levied.

This is a great result for the neighbours whose lives were made a misery by the illegal letting of these flats on Airbnb and Booking.com.”

Councillor Ross Houston, Cabinet Member for Homes and Regeneration, said: “We gave Nathanel ample opportunity to stop using the properties as short-term rentals but were left with no alternative but to take him to court when he didn’t stop.

“Barnet Council clamps down hard on rogue landlords, and where they don’t cooperate, we will always bring them to justice. This is a great result for the neighbours whose lives were made a misery by the illegal letting of these flats on Airbnb and Booking.com.”

Houston added: “The prosecution and huge fine highlight the seriousness of the case and will be a strong deterrent to other rogue landlords from breaking the rules in the borough of Barnet.”

Despite widespread violations of short-term rental regulations across London, currently, prosecutions remain relatively rare due to the difficulty of proving breaches and councils’ lack of resources.

However, the huge penalty – more than three times the typical maximum fine for such breaches – could encourage other cash-strapped councils to follow suit and take tougher action against illegal holiday lets.