William Eichler 22 August 2017

Council prosecutes letting agent for issuing ‘sham licences’

Islington Council has successfully prosecuted a letting agent for issuing ‘sham licences’ in the first prosecution of its kind.

Green Live Ltd was fined £20,500, including compensation for the two victims of the sham licences, after they were reported to the council’s (housing) preventions and options team.

The letting agent issued the licences instead of tenancy agreements. They were designed to make the occupiers believe they had no right to challenge eviction or be given legally defined notice periods or minimum occupancy term periods.

The occupiers also did not benefit from the statutory deposit protection scheme because the agreement was not a tenancy.

The victims of the sham licences first contacted the (housing) preventions and options team at Islington Council in 2016 because they were not able to recover their deposits.

The team then contacted trading standards to alert it to concerns about the sham licences issued to the victims, which triggered an investigation culminating in prosecution.

Green Live Ltd pleaded guilty to two offences under the Consumer Protection from Unfair Trading Regulations 2008 relating to the issuing of licences to occupy where the fact gave rise to a tenancy.

The company also pleaded guilty to a further offence under the regulations of using a letting agency association logo where it was not a member.

Green Live Ltd was fined £11,000 for the two sham licences issued and £5000 for the misuse of a logo. The two victims of the sham licences were awarded compensation totalling £3000 and Islington Council was awarded costs of £1500.

‘We want everyone in Islington to have a decent, secure home, and to be protected from illegal and precarious housing conditions,’ said Cllr Diarmaid Ward, Islington Council’s executive member for housing and development.

‘This case, which we believe is the first of its kind in the country, shows we will take action where letting agents break the law and issue sham licences.

‘We will not tolerate illegal practices like sham licences in Islington and if we become aware of any similar cases we will investigate with a view to prosecution.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Service Manager for the Multi Agency Child Protection Team

Nottingham City Council
£58,602 - £62,109
You will play a pivotal role in leading and shaping child protection practice across Nottingham Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Regulated Services

Nottingham City Council
£75,323 - £84,396
You will provide strategic leadership for our Residential Children’s Homes, our Fostering Services, and our, Permanence service Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Children's & Education Services Transformation

Nottingham City Council
£75,323 - £84,396
You will play a critical leadership role in driving Nottingham's ambition to deliver outstanding services for children, young people and families. Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Assistant Head of Legal Services (Regeneration & Property)

Royal Borough of Greenwich
PO9 - £71,181 - £74,802
The role will involve legal advice and support to committees, members and senior officers, and taking any appropriate measures London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner