Two landlords have lost almost £170,000 in legal fees and rental income after discovering their London flats had allegedly become unauthorised holiday lets.

Eugene Chan and Herman Lee, who live in Hong Kong, instructed an estate agent to sell their properties in Angel and Holborn in May 2024.

Instead, they became embroiled in a lengthy eviction battle after finding both flats advertised on Airbnb and other short-term letting platforms.

According to The Times, the owners incurred £84,000 in legal costs and lost around £87,000 in rent before finally regaining possession this month.

Agent accused of arranging unauthorised tenancies

The owners appointed Mohammad Ahmad Haqqi, director of the now-dissolved Nest Estate Consultancy, to market the properties.

When they failed to sell, the agency suggested letting them temporarily. However, the owners insist they never authorised a tenancy.

The dispute emerged in April 2025 when a woman contacted them, claiming to have rented the Angel flat for eight months.

She produced tenancy documents and evidence of payments to the agency.

Further investigations uncovered listings for both properties on Airbnb, Vrbo and Booking.com, with nightly rates of £302 and £478.

Court orders landlords to reinstate tenant

After discovering the suspected unauthorised subletting, the owners changed the locks.

But the woman claiming to be the tenant secured court orders requiring them to restore access.

She launched separate proceedings in two county courts, alleging unlawful eviction.

Initially, neither judge knew that the same woman claimed tenancy rights over both properties.

The case highlights the dangers of landlords taking possession into their own hands, even when they dispute a tenancy.

Two-year eviction battle

The owners instructed Osbornes Law to recover the properties.

Solicitor Shilpa Mathuradas issued Section 8 notices in autumn 2025, citing rent arrears.

Despite scheduling a hearing for February 2026, the courts did not grant possession orders until July and August.

The landlords finally recovered their flats on 1 and 12 October.

The court ordered the tenant to pay approximately £88,000 in rent arrears and £84,000 in legal costs. However, the owners may struggle to recover the money.

Mathuradas told The Times that her firm was receiving increasing enquiries about similar cases, particularly involving prime London properties and homes near airports.

Illegal subletting on the rise

The case comes amid growing concern over unauthorised short-term lets.

Research by Direct Line Business Insurance in 2025 found that 68% of surveyed landlords had discovered tenants subletting without permission.

One in five had spotted their properties on platforms including Airbnb, SpareRoom and Gumtree.

Marc von Grundherr, director at Benham and Reeves, told The Times that illegal subletting had increased significantly over the past three years.

He also raised concerns about individuals exploiting court delays to frustrate possession proceedings.

Meanwhile, the Cabinet Office estimates that up to 5,800 social housing properties could be subject to illegal short-term subletting.

A government data-sharing agreement with Airbnb has already helped uncover around 470 suspected cases.

For letting agents, the dispute raises questions about tenancy authorisation, property inspections and the risks of illegal subletting.

It also exposes the substantial cost of recovering possession, even when landlords ultimately secure court orders.