Are LBRUT falsifying the costs of the HMO licensing scheme both for new licences and for renewals as a means to illegally collect revenue?

The spreadsheet model LBRUT – LGA Spreadsheet 2015Jan – Peter Gaskin analysis was developed by the LGA and adopted by LBRUT to justify their mandatory HMO licencing fees. I consider it a work of fiction which has no legal basis and LBRUT refuse to provide evidence to justify the £257 per licensable unit (room) as at Jan 2015 (£263 per unit Jan 2016).

I estimate that LBRUT are sitting on a pot of approximately £70,000 HMO licence fees illegally charged to landlords. These funds should be returned to landlords within the borough. The HMO licence fees should reflect the actual costs of administering the HMO scheme but LBRUT are falsifying the costs model and refuse to provide accurate information about how their costs are calculated. They claim the costs are based on “a thorough discussion and agreement on average times”. They refuse to provide justification for overheads costs allocated to licensing.

I have raised a number of questions about the model using FOI but LBRUT have blocked responses saying I am being “vexatious”. Would you be concerned to getting such a response to direct and honest questions?

I used the formal complaints procedure to challenge their fees. Cathy Kerr, Director of Adult and Community Services responded. She compares their renewal licence fees with full licence fees saying it takes the same amount of time to renew a licence even when there are no changes to the terms of the licence – a piece of work that should take 1-2 hours – LBRUT says it takes them an average of 50.5 hours to renewal a licence! Other boroughs charge 50% of full fees. Kingston the next borough charges £200 for a renewal.

Statutory Instrument 2012 #2111 removes the need to provide lots of information on a renewal form.  LBRUT choose to ignore that and demand information about all our tenants so they can take communicate direct with our tenants!  Is this unacceptable to you? I have run my property for 28 years and I deal direct with all my tenants in a professional manner and maintain my property to the highest standard.  I don’t need a council that manipulates the truth talking direct to my tenants.

HMO Licence fee calculations should be transparent and fair and not make a profit – but LBRUT have chosen block FOI requests which attempt to understand how their fees are calculated.

A question to consider. If LBRUT are falsifying HMO licensing fees – what other areas of the council’s finances are being massaged?

These inflated false licence fees come on top of the removal of our wear and tear allowance and being taxed on turnover rather than profit.  Will you be in business as a Landlord by 2020 if you are making a loss?

The RLA states at http://www.rla.org.uk/landlord/guides/setting-fees-on-hmo-and-licensing.shtml?zoom_highlight=mandatory+licensing+fees

“The way to challenge a fee is by way of an application for judicial review but the Court of Appeal indicated that the three month time limit does not apply. Claims for overpayments of fees are a restitutionary remedy”.

Will you join me in challenging this illegal activity by an application for judicial review of the LBRUT HMO Licence fees? My application not only applies to LBRUT but to all licensing authorities and perhaps many others will be interested in this application as well.

Please call me on 07970 667534 if you could like to discuss further and join in the challenge to make LBRUT return the funds they have illegally collected.

Many thanks for your support.

Peter Gaskin