Leicester Selective Licensing Penalties: Fines, Civil Penalties and Rent Repayment Orders

A post on LandlordZONE from a Leicester letting agent asked: "How does a £5,000 fine sound?" That figure is not a statutory tariff: prosecution can result in an unlimited fine, and the civil penalty maximum for offences committed on or after 1 May 2026 is £40,000. The Renters' Rights Act 2025 also increased the maximum rent repayment period for those offences. Here is the enforcement picture for landlords operating in Leicester's mapped selective licensing areas without a licence.

Criminal Prosecution

Operating a property without a required licence is a criminal offence under Section 95 of the Housing Act 2004 (selective licensing) or Section 72 (HMO licensing). Leicester City Council can prosecute in the magistrates' court, where the fine upon summary conviction is unlimited. A conviction can also lead to an entry on the landlord's criminal record and, where the statutory criteria are met, the national Rogue Landlord Database.

The council may take action against a landlord, a person who has control of the property, or a managing agent who manages it, depending on the facts. Using an agent does not remove a landlord's own licensing responsibilities.

Civil Penalties

As an alternative to prosecution, Leicester City Council can issue a civil penalty notice under Section 249A of the Housing Act 2004. For offences committed on or after 1 May 2026, the statutory maximum is £40,000 per offence; the previous maximum was £30,000.

"Per offence" matters. If you own two unlicensed properties in the mapped selective licensing areas, each property may involve a separate offence and penalty. The council assesses each case under its enforcement policy.

Civil penalties do not require a court hearing — they are administrative fines issued directly by the council. However, you can appeal to the First-tier Tribunal (Property Chamber) within 28 days of receiving the penalty notice. The tribunal conducts an independent rehearing and can confirm, reduce or quash the penalty.

Rent Repayment Orders

Tenants living in an unlicensed property can apply to the First-tier Tribunal for a rent repayment order (RRO). The Renters' Rights Act 2025 (Phase 1, effective 1 May 2026) increased the maximum recovery period from 12 months to 24 months for offences committed on or after that date.

This is the risk that keeps landlords awake. A property let at £700 per month with no licence could face a rent repayment claim of up to £16,800 for an offence committed on or after 1 May 2026. The local housing authority may also apply for an RRO to recover housing benefit or universal credit paid for the property.

RROs are separate from civil penalties — a landlord can receive both. The tribunal assesses the amount based on the severity of the offence, the landlord's circumstances and whether the failure to licence was deliberate or an oversight.

Banning Orders

For the worst offenders — persistent non-compliance, multiple civil penalties, criminal convictions — Leicester City Council can apply to the tribunal for a banning order. This prohibits the individual or company from letting property or engaging in property management anywhere in England. Banned landlords are entered on the national database.

The "Duly Made" Defence

Having a pending licence application provides a statutory defence against prosecution, but only if the application was "duly made" — all documents uploaded, the Fit and Proper Person declaration submitted and the Stage 1 fee paid. An incomplete application on the portal does not count. Landlords who submit a partial application thinking it will buy them time often discover it provides no legal protection at all.

If your property is in a mapped selective licensing area and you do not yet have a licence, the priority is getting a complete application submitted as quickly as possible. The Landlord Licensing in Leicester guide includes a submission proof log template to document your application for exactly this purpose.

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