Rent Repayment Orders and Possession Rules for Unlicensed HMOs in Barnet

A tenant who discovers their Barnet HMO is unlicensed may be able to apply for a Rent Repayment Order, with the maximum period depending on when the offence was committed. Possession rules also changed on 1 May 2026: Section 21 notices ended for private assured tenancies, and landlords now need an applicable statutory ground.

How Rent Repayment Orders Work

A Rent Repayment Order (RRO) is an order the First-tier Tribunal can make under Chapter 4 of Part 2 of the Housing and Planning Act 2016 for specified offences. For an unlicensed HMO, the relevant offence is controlling or managing an unlicensed HMO under Section 72(1) of the Housing Act 2004; Section 73 helps define when an HMO is unlicensed. A tenant or local housing authority can apply.

For qualifying offences committed on or after 1 May 2026, an RRO can cover up to two years of rent. An offence committed entirely before that date remains subject to the previous 12-month limit. The tenant's potential order is based on rent paid by or on behalf of that tenant and is set by the Tribunal. If rent attributable to the applicant was £1,500 per month for 24 months, the two-year period represents £36,000 before the Tribunal assesses the amount.

The tribunal considers:

• Whether the landlord has been convicted of the offence or received a civil penalty
• The landlord's conduct (did they apply as soon as they became aware, or ignore the requirement?)
• The tenant's conduct
• The landlord's financial circumstances
• Whether the landlord has already been punished by a civil penalty for the same offence

Tenant advocacy organisations are active in Barnet. In public forum discussions, tenants have described pursuing RRO claims with professional support after discovering their HMO was unlicensed.

Possession Under the Current Rules

From 1 May 2026, landlords can no longer serve new Section 21 notices for private assured tenancies. Possession claims now require an applicable ground under the revised Section 8 process; notices served before commencement are subject to transitional rules.

An unlicensed HMO does not create a blanket bar on every possession claim. Ground 6B, introduced by the Renters' Rights Act 2025, can apply in specified enforcement situations, including where the authority has refused a required HMO licence or revoked an existing licence. Ground 6B requires four months' notice before applying to court.

How to Avoid Both Risks

The simplest protection is continuous licensing coverage. That means:

• Applying before you let the property (or immediately on acquiring a let property)
• Submitting a duly made renewal application before the current licence expires — under Section 72(4), an application that remains effective is a defence to an offence under Section 72(1) while pending, but it does not itself grant or extend the licence
• Not allowing any gap between licences, including during property sales (the buyer must apply on the day of legal completion because licences do not transfer)

The Barnet Landlord Licensing Guide includes a renewal timeline tracker and explains the deemed-licensed protection rules, so your property never falls into an unlicensed gap that tenants or the council can exploit.

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