The First-Tier Tribunal has overturned a £19,000 fine imposed by Waltham Forest Council on the operator of an unlicensed House in Multiple Occupation (HMO), ruling that the council failed to issue the penalty notice within the legal timeframe. The decision, upheld by the Upper Tribunal, hinged on the timing of when the council had 'sufficient evidence' to pursue enforcement action.
Background of the Case
Council officers inspected a property on Lea Bridge Road in September 2023, discovering three tenants who had been living there for two months. The property had previously been occupied by a single family, and the management had not applied for a new HMO licence. London Property Licensing, which represented the landlord at tribunal hearings, attributed this oversight to an administrative error.
On 20 March 2024, six months after the inspection, the council mailed a £19,000 fine to the landlord for operating the HMO without a licence. The letter was sent by first-class post, but the landlord claimed not to have received it. A further six months later, the council issued a reduced final penalty of £15,600, which the landlord challenged.
Legal Time Limit Dispute
Under housing law, local authorities must issue a notice of intent within six months of the day they obtain 'sufficient evidence' of an offence. The council argued that the clock started the day after the inspection, meaning the deadline was 21 March 2024. The tribunal, however, ruled that the day of the inspection itself—September 2023—was when sufficient evidence was gathered, making the deadline 20 March 2024. Since the fine was posted on that date and would have arrived on 22 March, it was two days late.
At the Upper Tribunal hearing, Judge Neil Cadwallader found that the council had misinterpreted the time limit and dismissed its appeal. The judge's decision emphasized that the statutory requirement is strict and cannot be circumvented by administrative delays.
Council's Next Steps
Waltham Forest Council has indicated it is considering further legal action. A spokesperson told the Local Democracy Reporting Service: 'We are considering our options following this ruling with a view to taking our case to the Court of Appeal.' The council maintains that its interpretation of the law was correct and that the fine was justified given the seriousness of the HMO licensing breach.
The case highlights the importance for local authorities to adhere strictly to procedural timelines when issuing penalties. Landlords and property managers are advised to ensure timely licence applications to avoid enforcement action, while councils must act promptly once evidence is obtained.
