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London landlord license fine to be £900,000

Total fines for breaching London's landlord licensing system are rising rapidly, reaching £900,000 so far this year and approaching £10 million since 2018, according to specialist firm Comma.

Data from the report, Red Tape Revolution: The next wave of license enforcement, shows councils are adopting more sophisticated strategies to crack down on rogue landlords and agents.

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Oxford Council's recent support campaign is a prime example. This has increased tenant awareness of licensing regulations and has already led to a landmark £85,000 payout to a group of students living in unlicensed accommodation.

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Wolverhampton City Council then decided to spend £2.5m to contract enforcement to private contractors.

The cost of breaches will also continue to rise, as the Tenant Bill of Rights extends the duration of rent repayment orders from 12 to 24 months, doubling the financial risk for landlords.

Proactive councils are increasing efforts to identify and sanction unauthorized properties. ”

Chris Morgan, COO, Kamma
Chris Morgan, COO, Kamma

The report says the most efficient councils currently inspect more than 8,000 properties during the licensing process.

Chris Morgan, Chief Operating Officer (COO) at Kamma, commented: “The rise in fines and the introduction of new licensing regimes are clear signs that many councils are replacing strict compliance with a proactive multi-route approach.

“This year alone, proactive councils have stepped up efforts to identify and sanction unlicensed properties. As our latest report shows, top-performing councils have increased their efforts to identify and sanction unlicensed properties. We inspect thousands of properties as part of our system and set high enforcement standards.”


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