Hackney tenants still owed £263k by billionaire landlord

Nearly 18 months after being ordered to pay £263,555.69 to 47 tenants in Hackney, billionaire landlord John Chistodoulou has not yet settled the compensation. The tenants, represented by Somerford Grove Renters, are now calling for the Mayor of London, Sadiq Khan, to officially designate Chistodoulou as a rogue landlord and add him to the city's database.

Unlicensed HMOs and Rent Repayment Orders

The compensation arose from legal challenges initiated in 2020 by residents of Olympic House, Simpson House, and St John’s Court. Tenants argued that Chistodoulou was operating unlicensed houses in multiple occupation (HMOs), meaning the properties did not meet required safety and quality standards. A judge, Robert Latham, described the landlord as a 'rogue landlord' during the proceedings. The rent repayment order forces landlords who have broken housing standards laws to return a portion of the rent paid by tenants. In this case, six years after the initial action, residents from 15 flats were awarded the substantial sum.

Jordan Osserman from Somerford Grove Renters stated that despite winning the rent repayment orders, the tenants have still not received the funds. "If an ordinary person receives a fine, they have to pay it," Osserman told MyLondon. "But when you’re a billionaire landlord, it seems there are all kinds of ways to avoid accountability."

Calls for Official Designation and Potential Loopholes

The Mayor of London maintains an online Rogue Landlord and Agent Checker, which names and shames landlords and agents fined or prosecuted. However, City Hall officials noted that their ability to act relies on local councils uploading records of enforcement actions. Green Party Assembly Member Benali Hamdache has written to the Mayor of Hackney, Zoe Garbett, urging action. Hamdache expressed concerns that Chistodoulou, who is based in Monaco, might be dissolving companies found guilty of mismanagement and re-establishing them under new names, a practice known as 'phoenixing'.

Hackney Council acknowledged the unacceptability of the situation. Dylan Law, Deputy Mayor and Cabinet Member for Safer Homes and Housing Services at Hackney Council, told the Local Democracy Reporting Service: “The landlord in question dodging repaying debts owed to tenants, seemingly by liquidating their business while continuing to let out properties at Somerford Grove and elsewhere, is unacceptable.” Law added that the current system has flaws, as landlords can evade legal responsibilities and debts without being banned. He called for central government to strengthen renters' rights and help councils prevent landlords from operating.

It is understood that the specific breach in this case may not meet the legal threshold required for Hackney Council to issue a banning order against Chistodoulou's companies under current housing legislation. A spokesperson for the Mayor of London confirmed their commitment to renters' rights and stated that the Rogue Landlord and Agent Checker is dependent on councils uploading enforcement records. They added that they work closely with London boroughs to ensure renters' rights are upheld.

What Happens Next

Tenants and their representatives are continuing to push for the Mayor of London to use available powers to hold John Chistodoulou to account. Benali Hamdache has indicated a willingness to call for new powers if existing ones are insufficient. Hackney Council has stated its commitment to using all available powers and resources to hold rogue landlords accountable and protect tenants. The Mayor of London's office has reiterated its reliance on councils to provide the necessary information for the rogue landlord database.