Landlords hit with the bill for flouting planning rules

Landlords have faced a legal bill totalling £421,837 for adapting properties without the proper planning permission – then refusing to revert them.

The combined sum covers fines and prosecution costs under the Proceeds of Crime Act, the sum representing the profit from the committed crimes.

Jamil Ahmed Khilji and Nusrat Jamil Khilji of Sylvester Road, Walthamstow were fined £160,000 after illegally converting a property on Rochdale Road, Leyton into two self-contained flats and failing to comply with an enforcement notice requiring them to return the property to its original structure.

The case was initially heard at Thames Magistrates Court where the owners pleaded guilty and the case was referred to Snaresbrook Crown Court for sentencing.

On 24 July 2020, the defendants were ordered to pay a total of £160,000 which included a fine of £1,000 for each defendant, costs of £18,000 and a Proceeds of Crime Act award of £140,000, with 56 days to pay.

Another Walthamstow landlord was ordered to pay £261,837.89 – or face two years in prison for building an extension to his rental property without permission.

Mohammed Raja Iqbal, landlord and director of Premier Home Investments Ltd, based on Hoe Street, Walthamstow, was convicted following his failure to comply with a planning enforcement notice relating to 65 St James’s Street, Walthamstow, where he built – without planning permission – a three-story extension, and converted the upper floor to flats.

The Planning Enforcement Team from Waltham Forest Council served a notice calling for the demolition of the extension and reinstatement of the original two-story structure.

Iqbal did not comply with the notice, so officers had no option but to take the case forward for prosecution.

Snaresbrook Crown Court ordered Iqbal to pay confiscation proceeds in the amount of £261,837.89 – or face two years’ imprisonment in default of payment.

Costs were awarded in the amount of £27,174 and a fine of £20,000 was handed down.

The confiscation order, costs and the fine must be paid within three months.

Following the conviction, the ability of Premier Home Investments to act as manager or licence holder in respect of any property licence will be reviewed.

Councillor Clyde Loakes, Deputy Leader and Cabinet Member for the Environment, said: “People who flout planning rules for their own financial gain need to understand that we will take necessary enforcement action.

“We will consider action under Proceeds of Crime Act whenever appropriate so that we take away the financial benefit of this criminal activity.’

John Stewart, deputy director for policy and research at the NRLA said landlords must ensure they comply with the law when it comes to carrying out any building work.

He said: “Landlords should always ensure they have the necessary permissions, both planning and building regulations, before carrying out any building work or renovations to their properties.

“Landlords should also consult with the local authority at the earliest opportunity should changes be required to agreed development or works.  

“As these prosecutions show flouting regulations and subsequent orders can have serious consequences.”