October 29, 2012

Proceeds of Crime Act used against landlord for the first time

A landlord in Norwich who failed to comply with regulations has become the first to be ordered to make a  payment under the Proceeds of Crime Act 2002 - in this case £40,000.

The Act, usually used to secure the assets of drug dealers and those involved in organised crime, was used by Norwich City Council to deal with Joseph Howman who pleaded guilty to nine offences under the Houses in Multiple Occupation (England) Regulations 2006.

Mr Howman let a single residential property as ten bedsits with shared bathrooms. On inspection by council officers it was discovered that bathrooms were dirty and had no hot water, rooms had no heating and there were multiple fire and electrical hazards. Norwich Magistrates Court ordered Mr Howman to make a total payment of £53,500 consisting of a £5,000 fine, £8,500 costs, £135 victim surcharge and £40,000 under the Proceeds of Crime Act.

This is just one of many examples where a local authority has taken a strong stance against a landlord who has shown total disregard for the law and the living conditions of their tenants. Recognising that the private rental market has seen dramatic growth over recent years and that this looks set to continue, for the foreseeable future at least, local authorities are keen to make an example of any dubious landlords that may cross their path.

There are a large number of regulations governing the behaviour of landlords, their duties and their responsibilities towards their tenants. If you are a landlord and would like to discuss your obligations or have a query relating to a particular issue, call David Dixey on 01376 320456.

David Dixey is a specialist Landlord & Tenant Law lawyer advising landlords across Essex and Suffolk on the legal rights and obligations.
 

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