Ashford landlord fined £12,500 for breaching rules regarding the running of an unlicenced House of Multiple Occupation

Ashford landlord Mr Fayez Noor has been ordered to pay a penalty of £12,500 by a Tribunal after he was found to be running a House of Multiple Occupation (HMO) without a licence.

Mr Noor runs the Indian Diner restaurant in Ashford’s Lower High Street and the flats above the restaurant have been an ongoing concern to Ashford Borough Council’s Private Sector Housing (PSH) team for many years. Access was gained in September 2020 after a complaint from a tenant was received, but unfortunately the team were unable to gain access to all rooms. 

On 24 January 2024 a PSH officer was invited by Immigration Enforcement to attend an unannounced visit at the Indian Diner restaurant and the flats above. 

During the visit she noted all bedrooms appeared occupied, however doors were locked and she could not gain access to all rooms.

Based on the evidence, the PSH officer was satisfied that the property was occupied as a House of Multiple Occupation (HMO) of more than five individuals, meaning that an HMO licence was required.

The council applied to a court requesting a warrant to gain entry to the property so that all rooms could be inspected, and on 5 June 2024 the warrant was granted. 

PSH organised a joint inspection with South East Immigration Enforcement, Kent Police and a locksmith on 16 July 2024. Using the warrant, they gained access to all bedrooms and communal spaces at the property. All 11 bedrooms were occupied and 13 individuals noted, including one person sleeping in the restaurant seating area on the ground floor.

This inspection confirmed the property was occupied as an unlicenced HMO. 

Under section 72 (1) of the Housing Act 2004, the PSH officer served a Financial Penalty Notice for £10,000 on the owner, Mr Fayez Noor, as well as an Improvement Notice for urgent works required to the property. The owner evicted the tenants and began complying with the Notice. 

The penalty was not paid and the owner applied to appeal to the First-tier Tribunal. In April 2025 the owner missed the date to appeal and requested an application to reinstate the appeal.

On 9 May 2025 the First-Tier Tribunal refused the application to reinstate the appeal. The owner then appealed to the Upper Tribunal and the hearing was held virtually on 28 August 2025. 

On 24 September 2025, the Upper Tribunal upheld the Financial Penalty Notice issued by the council and imposed a higher penalty on Mr Noor of £12,500 under s249A of the Housing Act 2004, for an offence under s72(2). The penalty must be paid within 28 days.

The Upper Tribunal considered Mr Noor’s culpability to be high, with either actual foresight of, or wilful blindness to, the risk of offending but a willingness to take that risk. 

It also found the risk of harm to the tenants and other occupiers of the HMO to be high or very high. Although the council had set the penalty at £10,000, the Upper Tribunal was satisfied that the penalty should be set at the maximum for that band in the sum of £12,500. 

This reflects the aggravating factors (Mr Noor’s failure to admit the offence and fully co-operate, plus his failure to provide financial information), the need to deter him from future offending and serve as a deterrence to others.

The size of the penalty was also set to remove the financial benefit he received from renting the property, and to reflect the risk of serious harm that could have come to the tenants. 

The Upper Tribunal said it was satisfied that such a penalty is proportionate in all the circumstances.

What is a HMO (House in Multiple Occupation)?

The mandatory House in Multiple Occupation (HMO) licensing that applies across England changed on the 1 October 2018.

From that date all HMOs that are occupied by five or more persons, forming more than one household and sharing amenities require an HMO licence, which is issued by the local authority under Part 2 of The Housing Act 2004.

“Legal action is our last resort”

Ashford Borough Council Leader Cllr Noel Ovenden said: “Officers from several teams were involved in bringing this difficult case to a successful conclusion. I congratulate them for their professionalism and tenacity, and for their partnership work with Kent Police and the Immigration service. 

“Taking legal action against a landlord is the last thing we want to do. Our officers are trained and skilled in resolving issues with landlords in an amicable way, without the need to go to court.

"The fact that this is the first time a financial penalty has been levied against a landlord in Ashford since the legislation was introduced in 2018 shows how successful our team has been in settling disputes.  

“I hope that this investigation and subsequent outcome helps other landlords who run Houses of Multiple Occupation in the borough to fully understand the responsibilities they have and to ensure they abide by the rules, for the benefit and safety of their tenants.”