[2025] UKUT 196 (LC)

90 Borders Lane is a flat above a shop. In October 2021 the two individuals who ran the shop and let the flat asked Mr Cetin to arrange lettings of two vacant rooms in the flat on a ‘let only’ basis. On both occasions the negotiator was Mr Oba, an employee of the Company. The flat contains five rooms and after the second of the two lettings arranged by the Company there were five occupants.

The two tenants whom the Company placed in the flat each paid a holding deposit and a month’s rent in advance to the Company. Mr Cetin confirmed that he had received those payments as agent for the landlords whom he had charged £250.00 commission in respect of each letting.

The FTT found that the property was being used as a licensable HMO and that it was not licensed. If Mr Cetin did not know that it was being so let the FTT considered that as an experienced and qualified agent he ought to have been alert to that possibility and should have made proper enquiries of the landlords and Mr Oba. Mr Oba did know that the property was being operated as an HMO and his knowledge was to be imputed to the Company. The FTT was satisfied that the offences of the Company were committed with the consent or connivance or are attributable to the neglect of Mr Cetin.

A financial penalty was imposed by the Council on Mr Cetin for the offence of being a person having control of or managing an HMO which was required to be licensed but was not so licensed, contrary to section 72 of the Housing Act 2004. The offence was said to have been committed between 11th October 2021 and 10th February 2022 and between 17th February 2022 and 6th April 2022.

In addition to the penalty imposed on Mr Cetin, the Council imposed financial penalties in respect of the same offence on each of the landlords which they accepted and paid.