“Because people are so desperate to get homes they are willing to pay far more than they would have been asked to pay in the past, I would say, overall, the situation is an exploitative one.”
He added: “People in very difficult rental circumstances are often vulnerable and councils need to do their best to offer facilities to shield people from aggressive landlords and one way is by the exercise of such powers.”
The Housing Act paved the way for Merton Council to introduce a selective licensing scheme across four wards – Figges Marsh, Graveney, Longthornton and Pollards Hill – last September.
The scheme required all private landlords in the area to sign-up to become licensed by the end of the year or face action from the council.
The special powers, introduced in consultation with residents, can be used to tackle poor property conditions and anti-social behaviour.
The first rogue landlord has now been slapped with an interim management order with not-for-profit Capital Letters taking over the properties for the next 12 months.
Councillor Judge said the powers under the Housing Act 2004 are rarely used and he could only find instances of them being used in Coventry and once in Waltham Forest.
That action in Labour-run Merton came after council officers inspected the homes following a complaint from tenants and the owner ignored notices for months.
“We feel that the interim management order is justified on the basis that we can’t allow this terrible conduct to continue,” said Judge.
“It also means that the landlord no longer has the power to issue notices to quit, for instance. We want the tenants to live in decent security, not fearful that they’re about to be evicted or fearful of bad landlord conduct. So we’re determined to use these powers now.”
Other councils are also taking action to support renters with growing numbers of people living in a private rented sector that is expensive and more likely to be in poor condition than social housing or owner-occupied homes.
Last year, in an interview with the Big Issue, Greater Manchester mayor Andy Burnham said he planned to use compulsory purchase orders to strip failing landlords of homes.
He has since been developing a Good Landlord Charter to help tenants avoid rogue landlords.
Meanwhile, the Labour government is due to bring the Renters’ Rights Bill to parliament in the months ahead.
The long-awaited legislation, which follow on from the Tories’ failed Renters Reform Bill, is set to finally axe no-fault evictions. That’s something that is needed urgently, Cllr Judge said.
But efforts to tackle rogue landlords in South London show councils can innovate to take action themselves, he added, even at a time when budgets are tight and homelessness pressures are leading to bankruptcy warnings.
“I think councils have been under the cosh since that time financially,” said councillor Judge, reflecting on why the powers have been seldom used over the last 20 years.
“Ever since Mrs Thatcher, councils have been under pressure to release their own housing stock. A lot of their stock has been sold on the Right to Buy so around two million properties have been lost and a lot of them are now in the private sector and rented out.
“I think all councils have been reluctant to be innovative in the use of powers. That’s not provable but it’s an impression certainly I’ve had. Also these powers are not easy to discern.
“But I think they’re quite powerful and I hope that, through our example, it will encourage other councils who face similar issues. I think on a moral and political level, councils need to be doing that as best they can.”
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