A very big portfolio landlord has been ordered to pay £15,290 to former tenants after it failed to license one of its 750 properties.

Lexadon Ltd which trades as the Lexadon Property Group told a First Tier Property Tribunal that it struggled to identify which properties needed a licence and faced “significant difficulties” training staff to apply for licences.

The three tenants moved into the HMO in Clapham Road, London, in November 2021 – one month before Lambeth Council introduced its additional licencing scheme. The tribunal heard that although Lambeth advertised the scheme and sent letters out, it did not send one in respect of this flat.

Lexadon Ltd’s operations director Amar Hothi (pictured) who is a former estate agent, said the firm only learnt that it needed a licence in November 2023 and was granted one in April 2024. The three tenants moved out in February 2024 and the flat is now let to two individuals, so no licence is required.

Expire

The tenants said they had complained about disrepair to windows and mould in the bathroom. The company also allowed the carbon monoxide and fire alarms to expire.

The tribunal heard that 174 of Lexadon Ltd’s 750 properties require HMO licences. It had already been handed an RRO of £10,108 (30% of the rent) in respect of an unlicensed HMO in April 2024.

Hothi said it was a family-run company which valued its staff and that this was a genuine mistake. All its HMOs are now licensed.

The judge ruled: “This is a professional landlord which owns a number of properties. It should have had proper arrangements in place to ensure that any property that required a licence, was licenced. A licence was not required at the commencement of the tenancy; however, the tenancy was renewed. We consider the offence to be serious, but not the most serious.”

The tenants won 60% of the £25,479 rent claimed. Read the judgement in full.