The Nottingham Central branch of letting and managing agents Belvoir (Nottingham Lettings Ltd trading as Belvoir Nottingham Central - BNC) has had their fine for breach of residential property management regulations reduced to £1,788.20 after appealing to the property tribunal.

Nottingham council fined the firm for breaching section 95 of the housing act 2004 - effectively, managing a residential property, that was required to be licensed, without a licence. The tribunal found that the firm had committed the relevant offence during the period 1st July 2021 to 3rd November 2021 but reduced the fine due to "mitigating circumstances".

One startling conclusion that the tribunal reached in relation to the correspondence between the parties involved (including the landlord) in this case was that "confusion reigned" and, when reading the case, one can understand why the tribunal came to this opinion.

The mitigating circumstances included the fact that there were no hazards in the property, all the relevant certification and documentation was valid and up to date and it was evident that BNC were not purposefully attempting to avoid and licensing requirements but the case highlights how agents need to be more up to the minute in terms of the commercial and reputational risk to them if they also collect the (rack) rent for the rented licensable property that they manage and their internal procedures aren't up to scratch.

The agents in this case thought that correspondence (notices, letters and emails) sent to them by Nottingham council were also sent to the landlord and that BNC were only copied in as the agents. The landlord, despite being told by the agents that she need to to apply for a licence, appears not to have understand clearly what was required of them. The tribunal was however of the opinion that it was not unreasonable for BNC to have, under the circumstances of the confusion, misunderstood that Nottingham council whether or not not the council included agents as being capable of breaching the licence application rules. However - the fact was that an offence was committed under the act.

The case can be accessed here and it is worth reading for both councils and managing agents as to the laws of unintended consequences but also, as to how those consequences can be avoided.