Landlord faces £140k+ confiscation order for renting flats without permission

A London borough has secured a £143,135 confiscation order under the Proceeds of Crime Act against a developer who rented out a property as flats despite having three planning applications turned down.

At a hearing at Inner London Crown Court earlier this month Lexadon, a company owned by Jerrard Knight, was also fined £13,000 and ordered to pay Lambeth Council’s £6,812 costs. The developer was fined £13,000 as well.

The company rented the property at 48 Trent Road in Brixton out as four flats.

Lambeth launched prosecution proceedings after the defendants failed to comply with a planning enforcement notice.

The council expects to receive £53,000 from the confiscation order.

Lambeth’s Deputy Leader (Finance & Investment), Cllr Paul McGlone, said: “Our planning system is there for a reason – to ensure any development is in the best interests of Lambeth – and anybody caught flouting the rules will be prosecuted.

“This particular case is a great result and the money we’ve been awarded can be used to tackle other breaches of planning in the borough.”

Cllr McGlone added: “We are not afraid to use POCA powers – people benefitting from criminal behaviour will have to repay any ill-gotten gains as well as fines and legal costs.”

Lambeth said it had recently secured the conviction of another landlord – Iqbal Ali Khan – for converting a property into flats without permission. The defendant was ordered to pay the council’s costs of more than £17,000 after an appeal was turned down at the Old Bailey on 5 September. The council said it had made an application for a confiscation order under POCA.

The local authority has meanwhile secured its first prosecution for subletting of a council property. Ahmad Nejad, 57, of Greig Terrace, Kennington was convicted of three charges under the Fraud Act 2006 after subletting a property in Paulet Road, Loughborough Junction. He was fined £1,500 and instructed to pay costs to Lambeth of £1,999.