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Letting agent prosecuted for giving tenants "sham licences"

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Letting agent prosecuted for giving tenants "sham licences"

It is believed that, for the first time in the UK, a letting agency has been successfully prosecuted under consumer protection legislation for granting "sham licences" to tenants.  Our friend and supporter, John Saulet of Saulet Townsend sent us the following details of this story...

The tenants in this instance were told that they each had a licence rather than an assured shorthold tenancy and their deposits were not protected in a tenancy deposit scheme.

Sham licences can mislead residential occupiers about their rights by misinforming them about the type of occupational arrangement they have.

The tenants complained to their council when they could not get their deposits back. Trading Standards prosecuted the letting agency under the Consumer Protection from Unfair Trading Regulations 2008.

The letting agency pleaded guilty to two offences under the Regulations and to a further offence of using a letting agency association logo without authority. The letting agency was fined £11,000 for issuing two sham licences and a further £5,000 for using the logo. The agency was also ordered to pay £3,000 in compensation to the tenants.

 

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About the author

Martin Silman

Martin began his landlord journey 30 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 12 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.

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