Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Landlord and Property Firm Fined £63,000 for Unsafe HMO in Kensington

A landlord and his property management company have been fined £63,000 after being prosecuted for operating an unlicensed house in multiple occupation (HMO) with serious safety failings in Kensington and Chelsea. Mohammed Rasool and Blackstone Properties Management Ltd were prosecuted by Kensington and Chelsea council following the discovery of unsafe conditions at 36 Hyde Park Gate, a 22-room HMO in central London.

The property came to the council’s attention in 2020 after a tenant complaint. Inspections in 2021 revealed the HMO was operating without the required licence and had multiple fire and electrical safety hazards. Council officers found damaged fire doors, inadequate fire separation between bedrooms, lack of fire safety protection in the boiler room and lobby, covered fire alarms, and burnt out and loose electrical sockets. These violations posed significant risks to the 22 tenants living in the property.

Kensington and Chelsea council stated that Mr Rasool and Blackstone Properties Management Ltd were given opportunities to address the issues, but the court found they did not take action. The council emphasised its commitment to enforcing safety standards for all residents.

This is not the first prosecution involving this property and its operators. An initial prosecution three years ago resulted in a £500,000 fine for failings at the same address. That ruling was challenged, leading to a retrial which concluded recently with the current £63,000 penalty.

The case highlights ongoing enforcement challenges in London’s rental market, particularly regarding regulatory compliance for HMOs. Companies House records show that Blackstone Properties Management Ltd, with Rasool as director, is more than two years overdue in filing required company paperwork.

For letting agents and inventory clerks, this case underscores the importance of ensuring HMO licensing and safety compliance. Regulatory scrutiny in the UK’s private rental sector is increasing, and enforcement action can result in substantial financial and reputational penalties, especially for repeat offenders.