Husband and wife landlords have been ordered to pay £65,970 under the Proceeds of Crime Act after renting out an unsafe House in Multiple Occupation.

If the pair fail to pay up by the end of this year, they will go to jail.

It is one of the highest fines ever imposed for offences under the Housing Act 2004, and also the highest ever secured by the prosecuting local authority.

The two-storey property in Ilford, Essex, was visited on several occasions between July 2012 and January 2014 by Redbridge Council housing officers.

The overcrowded property had been illegally converted into five ‘studio’ flats. There was no fire alarm system, escape routes were unprotected, electrics were defective, and there were water leaks.

The condition of the property was so bad that the landlords were served with an Emergency Prohibition Order in July 2012 to prevent the property from being occupied.

Despite this, they continued to rent out the property. In March 2013, they were prosecuted for housing offences by Redbridge Council and pleaded guilty, but the offences continued.

On December 15 last year, Rana Mohammed Irfan and his wife Naheed Rana Irfan pleaded guilty at Havering Magistrates Court to a further nine offences under the Housing Act 2004.

The case was referred to Snaresbrook Crown Court for sentencing and for consideration of a Confiscation Order under the Proceeds of Crime Act.

Snaresbrook Crown Court has now ordered each landlord to pay £32,985.

Each payment consists of a £7,430 Confiscation Order (for the profit made renting out the property while the Prohibition Order was in force), £2,250 for each for the six management offences and £3,250 for each of the three breaches of the Prohibition Order, plus costs of £2,305.

Altogether, the pair have been told to pay a total of £65,970. If they fail to make full payment within five months, they will each face an 18-month prison sentence.

Cllr Muhammed Javed, cabinet member for housing, said: “We will not tolerate landlords who place tenants’ lives at risk by renting out unsafe and badly managed properties. This case should act as a warning to others.”

Campbell Robb, Shelter’s chief executive, said: “We urge other councils to follow Redbridge’s lead and do everything in their power to crack down on the worst offenders in their area and stamp out rogue landlords for good.”

Redbridge Council is currently running an HMO licensing amnesty and is giving landlords until August 31 to submit their licence application. An enforcement campaign will then begin immediately, potentially resulting in £20,000 fines.