Notorious landlord forced to pay back £70,000 rent after illegally leasing Islington flat

Controversial: Andrew Panayi was ordered to pay a total of £85,000
Robin de Peyer22 October 2015

A notorious London landlord has been ordered to pay back £70,000 worth of rent he earned by illegally letting out a substandard flat.

Andrew Panayi, who is believed to lease around 180 properties in north London, was hit with a fine after pleading guilty to unlawfully renting out an unlicensed basement flat.

The flat had been declared “an unsatisfactory and substandard unit of residential accommodation” with “inadequate light and outlook and poor living environment” by council officers before he leased it.

But Mr Panayi let out the flat, in Caledonian Road where the majority of his property empire is based, for 14 years after buying it in 2000 - despite the enforcement notice which had been issued by Islington council.

The borough then launched legal action, seeking a confiscation order of £103,000 to reflect the 14 years’ worth of rent paid to Mr Panayi by tenants of the property.

Mr Panayi, himself of Caledonian Road, admitted to breaching a planning enforcement notice relating to the unauthorised use of the flat.

He was ordered to pay £70,000 in profits made from renting the flat, as well as a fine of £2000 and a costs award of £15,900 after a hearing at Blackfriars Crown Court last Friday.

Cllr James Murray, Islington council's executive member for housing, said after the hearing: “More and more people in Islington are renting privately, and we are determined to help make sure they have decent homes to live in.

“Most landlords act lawfully – but when rogue landlords break the rules, we will go after them.”

Shoebox: Mr Panayi was also criticised for leasing this small flat in Islington last year

Mr Panayi’s company, Ploughcane, has a net worth of more than £18million, according to Companies House records.

Another of his properties, also in Islington, sparked criticism last year after the tiny flat was snapped up within 16 hours – despite a £750 a month price tag.

But My Panayi hit back after criticism from local councillors, saying photos “didn’t do justice” to the property.

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