Residential lettings companies
wound up by High Court
Three Lancashire-based companies which failed to pay over rental payments collected on behalf of landlords and failed to refund deposits collected from tenants have been wound up in the High Court following an investigation by Companies Investigation Branch of the Insolvency Service.
Saxtons (Residential Lettings) Limited, Saxtons Residential Limited and Saxtons (Burnley) Limited operated as estate agents and letting agents in the Rossendale area. They were colloquially known as 'Saxtons' which created considerable confusion as to which particular company customers were dealing with.
This practice also facilitated the continuance of the business through a series of phoenix companies, the older companies being abandoned with liabilities but no assets.
The investigation found that numerous complaints had been made by landlords and tenants about the wrongful retention of rental payments and deposits.
Despite the companies purporting to operate a tenancy deposit scheme they had no mechanism in place to protect such deposits.
In addition the companies falsely represented that they were members of industry bodies, thereby implying a level of protection of monies collected on behalf of landlords and tenants as well as the application of defined standards of customer care.
In winding up the companies the High Court found that they had traded in a manner which was contrary to the public interest.
Identity fraudsters target young
professionals in rented accommodation
Tenants in rented accommodation face a high risk of becoming victims of identity fraud through having their mail intercepted according to a report by Experian Credit.
The report, based on an analysis of 5,000 identity fraud victims found that in 30 percent of cases, fraudsters took advantage of financial information sent to the victim's previous address.
Forwarding address fraud, when a fraudster redirects the victim's mail to another address, was used in 29 percent of cases.
The company says fraudsters are turning their attention away from the wealthy and targeting young, single people in shared accommodation.
It also concluded that young professionals living in London or Glasgow were more than twice as likely to be hit by identity fraud than the average consumer. Outside of London, the largest number of victims were from St Albans, Slough and Guildford.
Experian explained mail was often intercepted in shared hallways and that tenants often failed to redirect their mail, leaving themselves exposed to the fraud.
Similar research conducted a year ago revealed that company directors or those running their own businesses were the most likely victims. They were typically aged between 26 and 45, earned more than £50,000, rented their home and lived in London.
But the fraudsters, said Darryl Bowman, director of Credit Expert, have switched their attention to people whose details they can get hold of more easily.
Landlord did not have an HMO licence
A Derby landlord has been prosecuted by the City Council for failing to license a House of Multiple Occupancy or HMO.
Mr Naseem, owner of 13 Woolrych Street, was fined £1,760 plus costs of £1,700 for letting a property without a licence to nine tenants who shared the same kitchen and bathroom facilities.
He had not met the requirement of the Housing Act 2004 for landlords to license properties that have three or more storeys, and have five or more tenants who form more than one household, and share amenities such as bathrooms, toilets or kitchens.
Derby City Council's Cabinet Member for Housing and Environment, Cllr Bob Troup, said: “Derby has many good landlords who abide by the law and with whom we work closely. However, our message is clear that if landlords fail to comply with legislation we will take action against them.”
