A rogue landlord has received a Christmas card with a bill for £40,000 in it from Islington Council.

Landhouse Ltd has been ordered to pay back the money it received in housing benefit while letting out unlicensed bedsits within a single house in Holloway Road.

The firm had already been told to pay fines and costs to the tune of £14,140 after admitting not having a licence for the flat.

An inspection by environmental health officers found the place was overcrowded and poorly managed, with evident fire hazards.

And bosses was hauled in front of the Property Chamber on Wednesday where they picked up another bill for £39,022.52, which will go back to a central government housing benefit consolidation fund.

They have agreed to repay the money and the company has now applied for a licence.

Islington’s housing boss Cllr Diarmaid Ward said: “More and more people rent privately in Islington, and we’re committed to helping make sure they have decent homes to live in.

“We will take action when landlords do not keep within the law, and as this case shows the costs can be very significant.

“Any landlord or tenant with concerns about property licensing can confidentially contact the council for advice and support.”

In September last year Islington extended HMO licensing requirements to cover all the ones in Holloway and Caledonian Road.

It includes all rented properties with three or more people and some converted properties. This came after evidence of poor management of many rented properties in the streets.

Landlords and tenants can check if their property needs a licence here .