Fine for Unlicensed Landlord in Middlesbrough — Penalties and Rent Repayment Orders

Letting a property without a required licence in Middlesbrough is not a technicality the council overlooks. The enforcement powers are substantial, the financial exposure is real, and since the Renters' Rights Act 2025 came fully into force on 1 May 2026, the consequences have become significantly worse.

Civil Penalties

Middlesbrough Council can issue a civil penalty of up to £40,000 per offence for operating a licensable property without a licence. This is per property, not per landlord — a landlord with three unlicensed properties in Newport ward faces three separate penalties.

The council does not need to take you to court to issue a civil penalty. It is an administrative process: a notice of intent, a 28-day representation period, and then a final notice. The penalty amount is set by the council based on the severity of the offence, the landlord's history, and any harm caused to tenants.

Criminal Prosecution

As an alternative to civil penalties, the council can prosecute through the magistrates' court. A conviction for operating without a licence carries an unlimited fine. For repeat offenders or cases involving serious tenant harm, prosecution becomes more likely.

Rent Repayment Orders

This is where the financial exposure escalates sharply. Under the Housing and Planning Act 2016 (as amended by the Renters' Rights Act 2025), tenants can apply to the First-tier Tribunal for a Rent Repayment Order if the landlord has committed the offence of operating without a licence.

Since 1 May 2026, the maximum recovery period is 24 months of gross rent — doubled from the previous 12-month limit. A property let at £500 per month faces potential RRO liability of up to £12,000. The tenant does not need a criminal conviction against the landlord to apply — the tribunal makes its own finding on whether the offence was committed.

Local authorities can also apply for Rent Repayment Orders where Housing Benefit or Universal Credit housing costs were paid toward the rent.

Impact on Possession Proceedings

An unlicensed landlord cannot serve a valid Section 8 Ground 1 notice — the ground for recovering possession when the landlord wants to move back into the property — while the property should be licensed but is not, unless a valid licence application or Temporary Exemption Notice remains pending determination. Since the Renters' Rights Act 2025 abolished Section 21 "no-fault" evictions, landlords must rely on the statutory grounds in Section 8 to recover possession.

Without a pending licence application or Temporary Exemption Notice, this creates a practical deadlock for unlicensed landlords: you cannot serve the notice that gets your property back, and your tenants can simultaneously apply for an RRO covering up to two years of rent.

The "Duly Made" Defence

There is a statutory defence for a pending application. Under Section 72(4) of the Housing Act 2004 for HMOs and Section 95(3) for selective licensing, if you have submitted a "duly made" application — meaning all forms are complete, all documents uploaded, and the Part 1 fee paid — you have legal protection against prosecution for operating without a licence while the application is being processed.

This protection only covers the licensing offence. It does not shield you from enforcement for substandard housing conditions, HHSRS hazards, or breaches of other housing legislation.

How to Avoid Enforcement

The answer is straightforward: check whether your property needs a licence, and if it does, apply correctly the first time. The council's enforcement team is most likely to act on properties that have had no application at all, or where the landlord has ignored direct correspondence.

Our Middlesbrough Landlord Licensing Guide covers the full decision framework, document checklist, and application process — designed to get you from "do I need a licence?" to a duly made application as efficiently as possible.

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