Can we learn from Newham's approach to bad landlords

There was an interesting story in the Standard yesterday about how Newham Council (which has a particular problem with converting outbuildings into accommodation) is using legislation aimed at drug dealers to seize money from landlords who are letting illegaly.

"Newham is employing the Proceeds of Crime Act to seize money from people who charge desperate tenants a fortune to live in sub-standard, and often unsafe, accommodation.

In a recent case, Stamford Hill-based Sumal and Sons Properties Ltd was ordered to pay almost £6,000 in costs and fines by Stratford magistrates for illegally letting a freezing, damp and overcrowded house in Manor Park.

Inner London crown court then ordered the firm to repay about £6,500 in rent money, ruling it should be counted as a proceed of crime. The Proceeds of Crime Act enables authorities to recover cash and assets from people convicted of offences. It is typically used to target gang bosses, drug dealers and fraudsters."

Newham say they are going to target 40 landlords a year. They also have a registration scheme which all landlords have to join, or get fined £20,000.

Very interested in what others think - could Haringey learn any lessons? The £6500 repayment mentioned in the article above still seem very small to me, given what HMO landlords can reap over a year - but presume they are better than nothing and over time could offer a deterrant so long as they are enforced properly.