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

Career Grade Planning Officer

North Yorkshire Council
£35,570 - £44,253 per annum
The role consists of the provision of planning advice and managing a caseload of planning applications Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Social Workers

North Yorkshire Council
£35,570 - £44,253 per annum
If you're looking for a role where your expertise is respected, your wellbeing matters Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Residential Worker

Essex County Council
£27935.00 - £35344.00 per annum + includes allowance
Residential WorkerPermanent, Full Time£27,935 - £35,344 per annum (including allowance)Location
Recuriter: Essex County Council

Executive Director of Housing

Lewisham London Borough Council
£172,260 - £178,848
We will look to you to strengthen regulatory readiness, compliance and building safety; improve repairs London (Greater)
Recuriter: Lewisham London Borough Council

Team Manager - Multi-Agency Child Protection Team

Kirklees Metropolitan Council
£53,051 - £55,224
You will be accountable for the development and delivery of a complex range of key services Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner