Key Facts
- •City Estate Holdings Limited (respondent) was penalized for managing unlicensed properties under Gateshead's selective licensing scheme.
- •Respondent argued reasonable excuse due to lack of information from solicitors.
- •The First-tier Tribunal (FTT) cancelled the penalties, finding reasonable excuse.
- •Gateshead Council (appellant) appealed the FTT's decision.
Legal Principles
Ignorance of the law is not a defense.
Thurrock Council v Daoudi [2020] UKUT 209 (LC)
A landlord's reliance on an agent rarely provides a reasonable excuse. The landlord must take reasonable steps to keep informed.
Aytan v Moore and others [2022] UKUT 27 (LC); IR Management Services Limited v Salford City Council [2020] UKUT 81 (LC)
On appeal, the FTT makes its own decision, not a review of the local housing authority's decision.
Schedule 13A to the 2004 Act, paragraph 10(3)
Outcomes
The Upper Tribunal (UT) allowed the appeal.
The FTT erred in finding reasonable excuse; the respondent failed to take reasonable steps to ascertain licensing requirements. The FTT incorrectly considered the council's policy and the respondent's reputation.
The matter was remitted to the FTT for a determination of the penalty amount.
The UT could not determine the penalty amount due to lack of instruction and potential need for evidence of the respondent's financial circumstances.