Ealing Unlicensed Property Penalties: Fines, Civil Penalties and Rent Repayment Orders

Letting a property in Ealing without the correct licence is not a paperwork oversight the council will let slide. It is a criminal offence under the Housing Act 2004, and the financial consequences have increased sharply since the Renters' Rights Act 2025 took effect.

Civil Penalties

Since 1 May 2026, Ealing Council can impose civil penalties of up to £40,000 per property for operating an unlicensed HMO (Section 72) or an unlicensed selective property (Section 95). The penalty is per property, not per offence — a landlord with three unlicensed properties faces up to £120,000 in combined penalties.

Ealing applies a matrix that factors in culpability, the landlord's track record, harm caused to tenants and the deterrence value of the penalty. A first-time, low-culpability breach typically starts at around £7,000. Deliberate or repeat offences scale toward the £40,000 cap.

Civil penalties are issued directly by the council as an alternative to criminal prosecution. A landlord who receives a Financial Penalty Notice can submit written representations within 28 days and, if the penalty is upheld, appeal to the First-tier Tribunal (Property Chamber) within a further 28 days. The appeal suspends payment until the tribunal decides.

Criminal Prosecution

Ealing can choose criminal prosecution instead of a civil penalty. Conviction for operating an unlicensed property carries an unlimited fine. Prosecution also creates a criminal record, which can affect fit and proper person declarations on future licence applications.

Rent Repayment Orders

Tenants — or the council itself — can apply to the First-tier Tribunal for a rent repayment order (RRO). If the tribunal is satisfied beyond reasonable doubt that the landlord committed the offence, it must order repayment of rent.

Since 1 May 2026, the maximum period covered by an RRO has doubled from 12 months to 24 months of gross rent, minus any direct utility payments the landlord made. For a property rented at £1,500 a month, that is up to £36,000 returned to the tenant — on top of any civil penalty.

Licence Condition Breaches

Holding a licence but failing to comply with its conditions is a separate offence. Since May 2026, breaching licence conditions or HMO management regulations can also attract civil penalties of up to £40,000 per breach and unlimited fines on conviction.

Section 21 Restrictions

Section 21 was abolished under the Renters' Rights Act 2025 on 1 May 2026. Before abolition, licensing status restricted its use on properties requiring a licence; Section 21 is no longer available. Licensing duties remain separate, and operating without a required licence can still lead to prosecution, a civil penalty or a rent repayment order.

Rogue Landlord Database and Banning Orders

Serious or repeated licensing offences can result in entry on the Database of Rogue Landlords and Property Agents. A Banning Order under the Housing and Planning Act 2016 can bar an individual or company from letting properties or engaging in property management across England.

The Best Protection Is a Valid Application

The simplest way to avoid all of this is to submit a valid licence application before you let the property. Even while the application is being processed, a "valid application pending determination" gives you temporary legal protection against prosecution.

The Ealing landlord licensing guide covers the full penalty framework, the application process for all three licence types, and a pre-submission checklist to make sure your application is valid from day one.

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