Lambeth Rent Repayment Orders: How Tenants Reclaim Rent from Unlicensed Landlords

A rent repayment order lets tenants reclaim rent they paid while living in an unlicensed property. Since 1 May 2026, the Renters' Rights Act doubled the maximum claim period from 12 to 24 months. In a borough where selective licensing now covers 23 of 25 wards, this is a significant financial risk for any landlord who has not applied.

How Rent Repayment Orders Work

The tenant (or the local authority, where housing benefit was paid) applies to the First-tier Tribunal (Property Chamber). The tribunal decides whether the landlord committed a housing offence — typically operating a licensable property without a licence under Sections 72(1) or 95(1) of the Housing Act 2004 — and, if so, how much rent should be repaid.

The maximum repayment is 24 months of rent for offences committed on or after 1 May 2026. The tribunal has discretion over the amount — it is not automatically the full 24 months. It considers the conduct of the landlord and tenant, and the landlord's previous convictions, financial penalties or rent repayment orders. Repeat offences, or an existing penalty for the same offence, generally mean the maximum award unless exceptional circumstances apply.

For a Lambeth property let at £1,800 per month, the theoretical ceiling is £43,200 — and that is before any separate civil penalty the council may impose.

Who Can Apply

Tenants can apply directly. They do not need the council's permission or cooperation, and the council does not need to have taken enforcement action first. A tenant who discovers their property is unlicensed can apply to the tribunal independently.

The local authority can apply for an RRO covering rent paid through Housing Benefit or Universal Credit during the unlicensed period. A tenant can make a separate claim for rent they paid themselves.

The application can be made while the tenant is still living in the property or after they have moved out, as long as the offence period falls within scope.

The 12-to-24-Month Change

Before the Renters' Rights Act amendments took effect on 1 May 2026, rent repayment orders were capped at 12 months. The doubling to 24 months applies to offences committed on or after that date.

For ongoing unlicensed operation, the relevant period is when the tenant was paying rent while the property lacked a licence. If the property was unlicensed from September 2025 through October 2026, the 12-month cap applies to the pre-May 2026 period and the 24-month cap to the post-May 2026 period for the same offence.

Connection to Civil Penalties

A rent repayment order and a civil penalty are separate proceedings. The council can issue a civil penalty of up to £40,000 and the tenant can simultaneously apply for a rent repayment order. They address different parties — the council collects the penalty; the tenant receives the repaid rent.

The tribunal does consider whether the landlord has already been penalised when deciding the rent repayment amount, but there is no rule preventing both outcomes.

How to Protect Yourself

An effective licensing application can provide a defence to an unlicensed-operation offence from the date the application becomes effective. A licence granted later does not erase an earlier unlicensed period that may be covered by an RRO.

A duly made application means all documents uploaded to the Metastreet portal, all fields completed, and Part A paid. Under Sections 72(4) and 95(3) of the Housing Act 2004, an effective application that remains pending is a defence to the unlicensed-operation offence for that period. It does not defeat an RRO claim for an earlier unlicensed period; keep the submission confirmation and payment receipt to show when the application became effective.

This is why keeping your submission confirmation, payment receipt and complete application records matters — they show when the licensing defence became effective and can help establish which period an RRO claim may cover.

Our Lambeth landlord licensing guide includes a submission verification log and covers the full enforcement framework, including how an effective, duly made application can limit exposure for the period after it becomes effective.

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