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United Kingdom

Sham licences and criminal liability: Islington LBC v Green Live under Consumer Protection from Unfair Trading Regulations 2008: implications for agents, tenancy deposits and local authority enforcement (England and Wales)

Published on: 21 November 2017

Published by a LexisNexis Property Disputes expert
Legal News
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Article summary

What is the significance of this case? Why is it important for practitioners?

On 10 August 2017, at a hearing at Highbury Corner Magistrates’ Court, Green Live admitted two offences contrary to the Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277 (the Regulations). The prosecution concerned the issuing of supposed ‘licences to occupy’ when the arrangements were in fact tenancies. Thought to be the first matter of its kind in the UK, its significance lies in showing that local authorities can, and will, act where agents or landlords attempt to evade obligations to afford tenants security of tenure and to protect deposits. While tenants have long resisted possession claims and pursued statutory penalties for failures to safeguard deposits, this case makes clear that landlords and agents engaging in such conduct risk criminal prosecution as well as civil penalties.

How helpful is this judgment in clarifying the law in this area? Are there any remaining grey areas?

For more than three decades, ...

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