Croydon Unlicensed Landlord Penalties: Fines, Rent Repayment Orders and Banning

The Penalty Framework

Operating a private rented property in Croydon without the required licence is a criminal offence under the Housing Act 2004. The council has two enforcement routes: criminal prosecution in the Magistrates' Court (unlimited fine on conviction) or civil financial penalties of up to £40,000 per offence under Section 249A.

Croydon's published enforcement policy sets starting-point fines that vary by offence severity:

These are starting points, not caps. The council adjusts the final amount based on the landlord's history, the seriousness of the breach, and any aggravating or mitigating factors. The statutory maximum for any single offence is £40,000.

Rent Repayment Orders

Tenants of unlicensed properties can apply separately to the First-tier Tribunal for a rent repayment order (RRO). For offences committed on or after 1 May 2026, the maximum recovery period is 24 months of gross rent — double the previous 12-month cap.

An RRO runs alongside any civil penalty the council imposes. A landlord caught operating an unlicensed HMO could face a £17,000+ council penalty and an RRO covering up to 24 months of eligible rent.

The tenant applies using Form RRO to the First-tier Tribunal (Property Chamber), with an application fee of £114 and a hearing fee of £227.

Loss of Possession Powers

While a property remains unlicensed, the landlord cannot lawfully serve statutory possession notices under tenancy legislation. Since the Renters' Rights Act 2025 abolished Section 21 notices from 1 May 2026, possession now proceeds under statutory grounds, but the licensing restriction remains.

This can restrict the landlord's ability to recover possession through statutory procedures while the property remains unlicensed.

Banning Orders and the Rogue Landlord Database

Conviction or civil penalty imposition for qualifying housing offences can lead to an entry on the national Database of Rogue Landlords and a banning order under the Housing and Planning Act 2016. A banning order prohibits the individual from letting residential property or engaging in property management for periods of 12 months to five years.

How to Challenge a Penalty

If Croydon Council decides to impose a civil penalty, it must first serve a Notice of Intent. You have 28 days to submit written representations. If the council proceeds, it issues a Final Notice specifying the penalty amount.

To challenge the Final Notice, you file an appeal with the First-tier Tribunal (Property Chamber) using Form HO4, within 28 days of service. The application fee is £200 and the hearing fee is £300. Filing a timely appeal suspends the penalty until the tribunal decides — and the tribunal conducts a full re-hearing with the power to increase, decrease, or quash the penalty.

The Defence: A "Duly Made" Application

One critical protection: under Sections 72(4) and 95(3) of the Housing Act 2004, a landlord with a complete, "duly made" application pending with the council is protected against prosecution or civil penalties for operating without a licence while the application is being processed. The application must include the completed form, required documents and floor plans, and the Part A fee. Interested-party notices are a separate requirement before submission.

A portal payment receipt alone does not provide this protection if the application itself is incomplete.

For a full walkthrough of the application process and how to ensure your submission is complete and "duly made," see our Croydon Landlord Licensing Guide.

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