Securing Tenant Rights in an Unprotected Deposit and Unlicensed HMO Case
Summary
We represented a long-term tenant in challenging multiple breaches of landlord obligations, including failure to protect a tenancy deposit, operating an unlicensed House in Multiple Occupation (HMO), and not carrying out essential safety checks. Our intervention preserved the tenant’s legal position, prevented unlawful eviction, and prepared the ground for compensation and enforcement action.
Background
Our client had lived in a rented property since 2018 under an assured shorthold tenancy, sharing the dwelling with four other occupants. The landlord recently asked the client to vacate the property but failed to provide valid supporting grounds for possession.
When reviewing their tenancy records, our client discovered there was no evidence the deposit had been protected in an authorised tenancy deposit scheme. After contacting the landlord, the client was told the deposit was protected but was not provided with any scheme reference number or protection certificate. Further enquiries confirmed that the deposit had never been registered.
Additional investigations revealed the property was not listed on the local authority’s public register as holding an HMO licence, despite meeting the criteria for mandatory licensing. The client also reported that no gas or electrical safety inspections had been carried out during the tenancy.
Challenges
- Unprotected deposit: Entitlement to claim financial compensation from the landlord.
- Unlicensed HMO: Restriction on the landlord’s ability to serve a valid section 21 notice.
- Safety compliance failures: No gas or electrical safety certificates provided.
- Navigating multiple breaches to ensure the tenant’s rights were protected while avoiding retaliatory eviction.
Our Approach
We provided comprehensive advice covering the deposit protection breach, HMO licensing offences, and safety compliance. Our work included:
- Gathering key evidence: tenancy agreement, proof of deposit payment, rent payment records, and results from deposit scheme searches.
- Drafting a formal letter before action to the landlord setting out the claim for deposit protection compensation.
- Advising on the implications of the property being an unlicensed HMO, including restrictions on using section 21 possession proceedings.
- Outlining the process for pursuing a rent repayment order should the landlord be found guilty of licensing offences.
- Highlighting the safety compliance breaches and the landlord’s obligations under housing legislation.
Outcome
The client’s legal position was secured, preventing the landlord from pursuing a valid section 21 eviction while the HMO remained unlicensed. The evidence gathered formed the basis for pursuing deposit protection compensation and potential further enforcement action, strengthening the tenant’s negotiating position and ensuring their rights were upheld.
Key Legal Takeaways
- A landlord’s failure to protect a deposit within 30 days of payment can entitle a tenant to significant compensation.
- Operating an unlicensed HMO can prevent the landlord from using section 21 to regain possession.
- Safety compliance, including regular gas and electrical inspections, is a statutory requirement in residential lettings.