A letting agency in Derby has been fined £14,000 after it pleaded guilty to renting out an unsafe property in contravention of an existing Prohibition Order issued two years ago by the city’s council.

Steadwall Properties Limited, which is based within a business centre (pictured) on Normanton Road was found to have rented out the two flats within the property on Osmaston Road above a pharmacy despite the August 2023 Prohibition Order, which had prevented anyone living there until remedial works were completed and certified.

The company has no website and its only public-facing platform is a Facebook page, which claims its business is based on built on a foundation of ‘diligence, integrity and trust’.

Following an initial visit by council officers, the property it managed was found to feature significant safety hazards, including a compromised flat roof, and risks of structural collapse.

Routine check

A routine check of the properties in August 2024 and a subsequent criminal investigation found that the flats had been rented out to new tenants in contravention of the Prohibition Order, and that serious safety hazards remained in the property. The letting agents had been receiving rent payments for eight months.

At Southern Derbyshire Magistrates’ Court, Steadwall Properties Limited pleaded guilty to the offence of knowingly permitting occupation of a prohibited property contrary to section 32 of The Housing Act 2004.
The company was fined £21,000, reduced to £14,000 because of an early guilty plea, and ordered to pay £1,750 costs.

During summing up, the magistrates commented that the firm had “recklessly permitted occupation and placed vulnerable tenants at risk of considerable harm”.

Safe place

“We’re committed to ensuring everyone in Derby has a safe place to call home,” says Councillor Shiraz Khan, Cabinet Member for Housing, Strategic Planning and Regulatory Services.

“While most private landlords are responsible and provide good quality housing, our dedicated team works tirelessly to identify and pursue those, whether they are landlords or letting agents, who disregard the health and safety of their tenants.

“We won’t tolerate substandard accommodation and will continue to use every tool at our disposal – from prosecution to civil penalty notices and rent repayment orders – to hold them accountable.”