Rogue landlords could be forced to give up all earnings

Landlords who crammed up to 40 migrants inside semi-detached townhouse in north-west London face losing hundreds of thousands of pounds they made in rental income after Brent Council this week became the first council in the country to use the Proceeds of Crime Act (POCA) against them.



Harrow Crown Court heard how tenants were made to sleep in bunk beds, which blocked all fire exits, leaving His Honour Recorder Rubin QC with little alternative but to order the POCA to recover criminal assets that the Shah family obtained.


Harsha Shah, her daughter Chandni, and brother-in-law Sanjay Shah, rented their four bedroom property in Wembley through estate agent Jaydipkumar Valand, receiving between £40 and £75 per week in cash over a five-year period by the tenants who resided in filthy and dangerous living conditions.


Edmund Robb, counsel from Prospect Law who represented Brent in the hearing, commented: “This judgment represents a landmark ruling from the Crown Court which allows local authorities to initiate confiscation proceedings under POCA 2002 for criminal offences linked to safety and amenity regulations.


The Shah family now face paying a confiscation order for financial benefit gained or saved as result of contraventions of the Management of HMO Regulations 2006 and breaches of licensing conditions that could amount to more than £360,000.


This covers repairs they neglected to fix and financial gain made from their racketeering.


“Rogue landlords cannot now hide behind previous case law to avoid being required by the courts to pa­­y back rents and other benefits obtained whilst their tenants lived in squalid and dangerous conditions” said Robb.


Cllr Harbi Farah, cabinet member for housing and welfare reform, said: “This is a landmark legal decision for our zero tolerance policy against rogue landlords. We will use all the powers we have to put an end to tenants living in misery, and this includes the Proceeds of Crime Act.”


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5th February 2018