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Barnet v Kamyab- Court of Appeal

Roderick Morton • 30 August 2021
Update on Barnet vs Hamid Kamyab - [2021] EWCA Crim 1170

In NAPE’s April 2021 newsletter, we reported on the case of Mr Kamyab ([2021] EWCA Crim 543), who converted a 5 bedroom house to a 9 bedroom HMO without permission and failed to comply with a 2013 enforcement notice requiring cessation of the use. Mr Kamyab was convicted and a POCA confiscation order was made in the grand sum of £58, this being the rental income for the single day for which the summons had been issued rather than the rent for the several years that the property had been rented out.  

The Court of Appeal overturned the confiscation order amount, concluding that the offence was not a single day offence, almost irrespective of the drafting of the summons, and that the confiscation order should therefore apply to the whole period during which Mr Kamyab was in non-compliance.

Unusually, for various reasons set out in our article, the learned members of the Court of Appeal faced the unenviable task, normally borne by Crown Court judges, of hearing detailed financial and oral evidence as to the benefit Mr Kamyab had received and his available assets. It was clearly an unpalatable task and one they made clear they would not want to repeat. But it was one to which they rose on 27 July. And if Mr Kamyab thought he was in for an easy ride, he was sorely mistaken.

The numbers at any particular confiscation hearing are of limited interest to anyone not involved in the case so we won’t go into them. But there were two points of general interest. Firstly, Mr Kamyab argued that he paid all the rent to his bank so that it was not benefit to him. The Court of Appeal judges recorded that they did not believe him and reminded us of the burden of proof. It was Barnet’s task to demonstrate benefit on the “balance of probabilities”. They had done so and Mr Kamyab had failed to show otherwise. Barnet’s calculations won.

Secondly, Mr Kamyab argued that the offence ended when the 9 bedroom HMO had in fact become a 6 bedroom HMO in 2015. The court preferred Barnet’s argument that (a) it wasn’t a 6 bedroom HMO because it had some self-contained flats and (b) even if it was a 6 bedroom HMO, that was development for which there was no permission because the property had not been returned to C3 use first and the claimed PD right did not exist due to Article 3(5) of the GPDO anyway.

The second task approached by the court was determining the amount of Mr Kamyab’s available assets. Readers will recall that the POCA confiscation is limited to the higher of the benefit obtained or the assets available to pay the order. The burden of proof was on Mr Kamyab to demonstrate that he had no assets. He failed because the court found he was not telling the truth. Key to their doubts was the lack of evidence of any payments to the bank and the evidence of some £250,000 paid to his father instead.

The outcome was a confiscation order raised from £58 to £499,363. Ouch!

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Clarkson’s popularity will be re-assessed in 3 years as the permission is time limited. Perhaps the inspector knows something we don’t. As viewers will know, Clarkson’s Farm operates in open countryside in an AONB. As well as agriculture, it has diversified to include a farm shop and a café in a lambing barn. The business tried to open a restaurant in a converted barn located some distance from the shop. The site is obviously used as a filming location. The business has proved popular and it now has significant parking and highway problems. The farm shop (with limited parking) has permission, the construction of the lambing barn (but not its use) has permission and there is permission for limited filming. The council enforced against the material change of use of the land to a mixed agricultural and leisure attraction use, comprising café, restaurant, gift/farm shop, parking and lavatory facilities. The notice was appealed. The appellant also sought (and was refused) permission for additional parking, access, storage and landscaping. This appeal was heard alongside the enforcement appeal. The inspector dealt first with the planning unit. The appellant alleged that there were three separate planning units (shop, café, restaurant), with each having a separate primary use. The council had enforced against a single unit in a mixed use. The inspector took into account that the shop/café was in a different ownership to the farm and that it had its own permission. But its activities clearly spilled out of the permitted area, extending to the proposed restaurant and the wider parking areas. The restaurant used the same parking as the shop. These were fenced/walled off from the remainder of the farm. He concluded that there was a single planning unit. As for the use of that planning unit, the inspector took issue with several items listed by the council. “Gift shop” was too ambiguous; a shop is a shop. Similarly, while visitors no doubt came for the experience, the business was not a “leisure attraction”. A leisure attraction required, said the inspector, something which the customer might be expected to pay for. There was no entrance fee here, just a shop and café. (It appears that the inspector was also concerned that any permission for a “leisure attraction” would create a very wide lawful use.) Nevertheless, there were several primary uses in a single unit so the development was a mixed use, in this case a “mixed use comprising agriculture, café, restaurant, farm shop, parking, lavatory facilities.” This put paid to the ground (b) and (c) challenges. The challenge was that the restaurant was a separate planning unit. As it was in the curtilage of the lawful farm shop, the appellant said that Class R permitted a change of use to a flexible use including a restaurant. In the light of his conclusion on the planning unit, the inspector rejected this. He said he would have rejected the Class R argument anyway as the restaurant was not clearly within the curtilage of the farm shop. The remainder of the uses cited in the notice were also challenged on the grounds that they were ancillary to the lawful farm shop use and not primary uses. The inspector concluded that, as the restaurant resulted in a mixed use, there had been a material change of use so it was irrelevant whether the other items were ancillary. As an aside, viewers of the series will recall the scripted glee with which the appellant came up with the “PD loophole” for his restaurant. It is fitting, therefore, that it was the restaurant which was the primary reason the breach was upheld. The inspector nevertheless looked at the extent to which the various alleged ancillary elements (other than the restaurant) were part of the lawful use prior to the breach. This was relevant to the fallback but also to what the extent of the material change of use truly was. 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