A rent-to-rent agency in Portsmouth has been hit with fines totalling £35,000 after being found guilty of letting out overcrowded and unlicensed Houses in Multiple Occupation (HMOs). The penalties follow an investigation by Portsmouth City Council, which uncovered numerous breaches of housing regulations.
Council officers suspected that several properties managed by the agency were operating without proper HMO licences and were severely overcrowded. However, when officers attempted to inspect the properties, they were denied access by tenants reportedly instructed by the agency not to let them in.
After obtaining warrants to enter the properties, officers confirmed the suspicions: the homes were unlicensed HMOs. The agency’s director then escalated matters by harassing tenants in an attempt to evict them, leading to additional legal action.
Court ruling highlights tenant vulnerability
During a hearing at Portsmouth Crown Court, the director admitted to multiple offences under the Protection from Eviction Act 1977, as well as charges for managing unlicensed HMOs and failing to comply with HMO management regulations. The court handed down a sentence of 200 hours of community service, alongside a £114 victim surcharge for harassment and eviction offences.
The agency was fined £1,000 and ordered to pay over £9,000 in court costs. Additionally, the director faced a £19,150 fine for the unlicensed properties, while the agency was ordered to pay a further £5,750.
In sentencing, the judge emphasised the power imbalance between the agency and the tenants: “You were in a position of power, you held the keys to the roof over their head. They were vulnerable and didn’t know their rights. Officers from the local authority were perfectly entitled to enter the property to ensure the occupants’ welfare – something you, as a landlord, should also have been doing.”
The properties are now being managed directly by their owners, with tenants awarded compensation equivalent to two months’ rent.
Council vows to pursue rogue operators
The case underscores the council’s commitment to holding rogue landlords and agents accountable. Councillor Lee Hunt, Portsmouth’s cabinet member for community safety, stated: “The council will continue to prosecute rogue landlords and agents who break HMO rules, to protect tenants and neighbours alike. Homes that aren’t correctly licensed or overcrowded will be found out, and we will use the full force of the law.”
This case highlights the risks for landlords relying on unscrupulous agencies to manage their properties. While the rent-to-rent model can offer convenience, it requires careful vetting of agencies to ensure compliance with housing regulations.
