Property investors are being caught out by the raft of HMO licensing schemes being introduced across the country, according to Theresa Wallace, chair of trade body the Lettings Industry Council.
The payment for such misdemeanors is steep, as fines have risen as high as £45,000.
Theresa Wallace told The Telegraph: “We don’t have enough landlords and we have lost a lot of them from the sector.
“Scaring them out is not helping the industry. I don’t think the scheme is very well publicised.
“Why would anyone think to look on their local authority website? Anybody could be caught out by pure naivety.”
A Freedom of Information Request from The Telegraph found that landlords are typically being fined £10,000-£15,000 for failing to meet licensing scheme rules.
One way landlords can get caught out by licensing regulations are in cases where tenants have an additional person move into a property.
In one London borough 40 fines have been issued, totalling an eye-watering £172,000.
Wallace added: “The objective of the licensing scheme is not being met – which was to improve property standards. Just because you have a license, it doesn’t mean your property is safe to live in.”
