Landlord ordered to pay almost £50,000 for failing to license flats

A landlord has been fined £29,000 after being found guilty of failing to license a number of privately rented flats in Loughborough.

Olawunmi Odunaiya, who owns 7, The Coneries in Loughborough was prosecuted by Charnwood Borough Council for failing to license 29 flats under its selective licensing scheme.

Odunaiya denied the charges at Leicester Magistrates Court on 1 April but was found guilty after a trial.

The selective licensing scheme means all private landlords in a designated area of Loughborough must have a licence to rent out a property. Its aim is to drive up standards in privately-rented homes by ensuring properties are suitable for tenants to live in and are being managed effectively.

The Council introduced the selective licensing scheme in 2023.

The court was told Odunaiya was the owner of 7, The Coneries, a building which has 40 flats, 33 of which are owned and rented out by Mrs Odunaiya. Mrs Odunaiya had licenced four out of 33 of the flats she owned in the block.

The borough council became aware that the flats were not licensed at the end of 2023. It contacted Odunaiya multiple times informing her that the flats needed to be licensed and also offered her guidance with the applications.

Odunaiya failed to apply for any licenses. This led to the council taking the decision to prosecute.

Odunaiya told the court that she had intended to pay the selective licensing scheme application fees (£700 for each property totalling £20,300) for all 29 properties.

However she said she struggled due to cash flow issues at the time as the building required exterior repair work to the cladding, and fire safety measures were required following a fire safety audit from Leicestershire Fire and Rescue Service.

Odunaiya was fined £29,000 and ordered to pay £11,600 victim surcharge and £6,960 in court costs, totalling £47,560. She agreed to pay it all within two months.

The landlord was found not guilty of one further charge as it was established that this property had been sold in 2021.

After the hearing, Peter Oliver, the council’s director of housing and wellbeing, said: “Landlords have a duty to ensure the properties they rent out comply with any relevant licensing schemes.

“The selective licensing scheme was introduced to raise standards for tenants in the private rented sector in Loughborough.

“While we will work with landlords, we will also act against those who fail to comply with any licensing scheme in order to support and protect tenants.

“The defendant in this case was aware of the licensing scheme and had ample time to obtain the necessary licences, but she failed to do so.

“We hope this prosecution acts as a reminder to landlords in the area that they have a duty to provide good standard homes and comply with licensing schemes. If they don’t, the Council will take action.

“We also hope the case highlights to tenants in the private rented sector that they have rights and landlords can be held to account. The Council can offer advice to tenants in the private rented sector.”

Odunaiya has 28 days to appeal the Court’s decision.