Capital Letters, which describes itself as a “socially responsible not-for-profit” agency and landlord, – has taken over management of 18 properties seized from a rogue landlord by a local authority.

The 18 properties were subject to an Interim Management Order when Merton Council found they were un-licenced and that there was no reasonable prospect of the tenancies being licenced soon.

Capital Letters – funded by London borough councils – will manage the properties on behalf of the council, with a focus on bringing the properties up to a safe standard.

A spokesperson for Capital Letters says: “It’s both exciting to help one of our member boroughs take this bold step and distressing to know that tenants were living in dangerous unlicensed homes.

“Capital Letters is a landlord in our own right, so we have the expertise, the systems, and the knowledge to be able to manage these properties and ensure that they are made safe and brought up to standard.”

“Our unique position strengthens our member’s ability to issue Interim Management Orders, by working with Merton Council we are showing our member boroughs that we are ready to step in and ensure Londoners have a safe, secure, and good quality home.”

The Interim Management Order will remain in place for 12 months.

The Capital Letters agency says it will work with landlords across London offering let only, let and rent, and fully managed solutions, designed to directly help families experiencing homelessness.

In August Merton council became the first in the country to use special powers as part of a new scheme to take temporary control of the homes and direct the tenants’ rental income into improving the management of the properties. At the time, the council insisted that the owner remained responsible for paying the mortgages.