A landlord and his property management company have been ordered to pay £63,000 in fines and costs following prosecution for operating an unlicensed house in multiple occupation (HMO) with serious safety failings in Kensington and Chelsea.
Mohammed Rasool and Blackstone Properties Management Ltd were prosecuted by Kensington and Chelsea council after unsafe conditions were discovered at 36 Hyde Park Gate, a 22-room HMO in one of central London’s most expensive residential areas.
Safety violations identified
The property came to the council’s attention in 2020 following a tenant complaint. Inspections conducted in 2021 revealed the HMO was operating without the required licence and identified multiple fire and electrical safety hazards.
Officers found damaged fire doors, inadequate fire separation between bedrooms, lack of fire safety protection in the boiler room and lobby, covered fire alarms, and burnt out and loose electrical sockets. The violations posed significant risks to the 22 tenants residing in the property.
Councillor Johnny Thalassites, the council’s lead member for resident services, planning and enforcement, said: “Mr Rasool and Blackstone Properties Management Limited were given opportunities to put things right, 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.”
Previous prosecution history
This is not the first time the property and its operators have faced legal action. An initial prosecution three years ago resulted in a £500,000 fine for failings at the same address. That ruling was challenged, leading to a retrial which concluded several weeks ago with the current £63,000 penalty.
The case highlights ongoing enforcement challenges in London’s rental market, where regulatory compliance remains a concern for housing authorities. Rasool was previously described by a judge in 2022 as “a thoroughly dishonest individual” and identified by The Guardian in 2023 as one of London’s worst landlords.
Companies House records indicate that Blackstone Properties Management Limited, of which Rasool remains a director, is more than two years overdue in filing required company paperwork.
Market implications
The prosecution underscores the financial and reputational risks facing landlords who fail to meet HMO licensing requirements and safety standards. With regulatory scrutiny of the private rental sector intensifying across the UK, property investors and managers face growing compliance obligations.
The case serves as a reminder that enforcement action can result in substantial penalties, particularly for repeat offenders operating in high-value property markets where tenant safety violations are identified.