THE PROPERTY FILTER TAKE
Combined fines for a landlord and property management company at an unlicensed London HMO were cut from £480,000 to £50,000 after a retrial - but both parties were convicted on all eight charges.
The fine reduction is not the headline. Convictions stood, and legal costs across two sets of proceedings will have added substantially to the total bill.
You may wish to review your HMO licence conditions and fire safety arrangements before a council inspection, rather than after one.
A landlord and property management company have been convicted for the second time over an unlicensed HMO (house in multiple occupation) in London. Their combined fines fell from £480,000 in 2023 to £50,000 at retrial - but every one of the eight charges against them was upheld.
The case centres on a property at Hyde Park Gate in the Royal Borough of Kensington and Chelsea, converted from four bedrooms into 22 rooms. Council officers first visited in August 2021, according to Letting Agent Today (8 July 2026).
What happened in court
The original trial in 2023 ended with Mohammed Rasool and his company Blackstone Properties Management Limited each found guilty of eight charges under the Housing Act 2004 and the HMO Management Regulations 2006 (which set minimum standards for fire safety, structural condition, and facilities in shared rented properties). Total fines at that hearing came to £480,000, according to Letting Agent Today.
Rasool challenged the fairness of the original proceedings. The case was reheard at City of London Magistrates' Court. Guilty on all counts again - but the fines were drastically reduced. Blackstone Properties Management Limited was fined £20,000 for managing an HMO without a licence and £10,000 for failing to comply with an improvement notice (a formal council order requiring specific remediation within a set timeframe). Rasool received £12,500 and £7,500 respectively. The six management regulation breaches were treated as aggravating factors rather than separate financial penalties, bringing the total to £50,000.
What conditions were like inside
The Kensington and Chelsea council statement set out the detail. Tenants had no proper kitchen facilities and were cooking in their rooms using camping-style equipment. Rising damp and mould growth affected the whole building. Windows had rotten frames, broken sashes, and draughts throughout. On the upper floors, conditions had become so damp that mushrooms were growing inside the rooms, the council stated.
"Mr Rasool and Blackstone Properties Management Limited were given opportunities to put things right," a council spokesperson said, "but the court found they chose not to. We will continue to take action where landlords fail to follow the rules, because everyone in Kensington and Chelsea deserves a safe place to live."
What this means for HMO operators
This case ran from 2021 to 2026 - five years across two sets of proceedings. The fine reduction will attract attention, but convictions did not change and legal costs will have added to the total significantly.
The HMO Management Regulations 2006 apply across England and Wales, but licence conditions vary council by council. Some authorities add specific requirements around fire door standards or kitchen provision beyond the statutory minimum. Mandatory licensing under the Housing Act 2004 applies to any property with five or more occupants from two or more separate households. Some councils also run additional licensing schemes covering smaller shared properties. Check your licence conditions rather than assuming the minimum national standard covers everything the council requires.
If you are modelling returns on an HMO investment, licensing status feeds directly into yield calculations. The Property Filter HMO valuation calculator is a practical starting point. For portfolio operations and compliance management, the business and systems hub covers operational frameworks. And the property investment strategies hub covers HMO as a strategy, including Article 4 directions (which remove permitted development rights for HMO conversions in designated council areas).
Key takeaways
Combined fines dropped from £480,000 to £50,000 at retrial, but all eight convictions were upheld in full
Operating without an HMO licence and ignoring an improvement notice are each separate criminal charges under the Housing Act 2004
You may wish to audit your HMO licence conditions and fire safety arrangements before a council visit, not after
A landlord and property management company have been convicted for the second time over an unlicensed HMO (house in multiple occupation) in London. Their combined fines fell from £480,000 in 2023 to £50,000 at retrial - but every one of the eight charges against them was upheld.
The case centres on a property at Hyde Park Gate in the Royal Borough of Kensington and Chelsea, converted from four bedrooms into 22 rooms. Council officers first visited in August 2021, according to Letting Agent Today (8 July 2026).
What happened in court
The original trial in 2023 ended with Mohammed Rasool and his company Blackstone Properties Management Limited each found guilty of eight charges under the Housing Act 2004 and the HMO Management Regulations 2006 (which set minimum standards for fire safety, structural condition, and facilities in shared rented properties). Total fines at that hearing came to £480,000, according to Letting Agent Today.
Rasool challenged the fairness of the original proceedings. The case was reheard at City of London Magistrates' Court. Guilty on all counts again - but the fines were drastically reduced. Blackstone Properties Management Limited was fined £20,000 for managing an HMO without a licence and £10,000 for failing to comply with an improvement notice (a formal council order requiring specific remediation within a set timeframe). Rasool received £12,500 and £7,500 respectively. The six management regulation breaches were treated as aggravating factors rather than separate financial penalties, bringing the total to £50,000.
What conditions were like inside
The Kensington and Chelsea council statement set out the detail. Tenants had no proper kitchen facilities and were cooking in their rooms using camping-style equipment. Rising damp and mould growth affected the whole building. Windows had rotten frames, broken sashes, and draughts throughout. On the upper floors, conditions had become so damp that mushrooms were growing inside the rooms, the council stated.
"Mr Rasool and Blackstone Properties Management Limited were given opportunities to put things right," a council spokesperson said, "but the court found they chose not to. We will continue to take action where landlords fail to follow the rules, because everyone in Kensington and Chelsea deserves a safe place to live."
What this means for HMO operators
This case ran from 2021 to 2026 - five years across two sets of proceedings. The fine reduction will attract attention, but convictions did not change and legal costs will have added to the total significantly.
The HMO Management Regulations 2006 apply across England and Wales, but licence conditions vary council by council. Some authorities add specific requirements around fire door standards or kitchen provision beyond the statutory minimum. Mandatory licensing under the Housing Act 2004 applies to any property with five or more occupants from two or more separate households. Some councils also run additional licensing schemes covering smaller shared properties. Check your licence conditions rather than assuming the minimum national standard covers everything the council requires.
If you are modelling returns on an HMO investment, licensing status feeds directly into yield calculations. The Property Filter HMO valuation calculator is a practical starting point. For portfolio operations and compliance management, the business and systems hub covers operational frameworks. And the property investment strategies hub covers HMO as a strategy, including Article 4 directions (which remove permitted development rights for HMO conversions in designated council areas).
Key takeaways
Combined fines dropped from £480,000 to £50,000 at retrial, but all eight convictions were upheld in full
Operating without an HMO licence and ignoring an improvement notice are each separate criminal charges under the Housing Act 2004
You may wish to audit your HMO licence conditions and fire safety arrangements before a council visit, not after
Frequently asked questions
Frequently asked questions
What HMO licence do I need?
Can a landlord challenge an HMO fine?
What happens if you ignore an improvement notice?
