An Upper Tribunal ruling has overturned a £19,500 penalty after Waltham Forest Council was found to have missed the legal deadline for taking enforcement action for an unlicensed HMO.

London Property Licensing, which handled the case, said the property on Lea Bridge Road in east London had previously been occupied by a single family.

It was then re-let to three sharers in July 2023, but the required HMO licence application was not submitted due to an administrative oversight by the managing agent.

Council officers only discovered the licensing breach when they inspected the property two months later, but neither the landlord nor the agent was informed.

Never received

Six months afterwards, the council posted a notice of intent to impose a £19,500 penalty, but the licensing consultancy said it was never received by the landlord. As a result, no representations were submitted, and a final penalty of £15,600 was issued six months later.

When the landlord appealed to the First-tier Tribunal, the tribunal agreed the notice had been served out of time and cancelled the penalty in September 2025.

Waltham Forest Council subsequently challenged the decision, but the Upper Tribunal dismissed the appeal earlier this month. His Honour Judge Neil Cadwallader ruled the authority had misinterpreted the statutory time limit for serving a notice of intent.

I’m concerned the regulatory model is out of balance. We need better and more proportionate regulation of the private rented sector.”

Richard Tacagni (pictured), Managing Director of London Property Licensing, said: “This case demonstrates how the civil financial penalty regime is becoming ever more complex and litigious. High penalties are often imposed for minor indiscretions without any prior warning.

“With new statutory guidance supporting even higher financial penalties under the Renters Rights Act 2025, I’m concerned the regulatory model is out of balance. We need better and more proportionate regulation of the private rented sector.”