Lewisham Unlicensed Property Fines: Penalties for Letting Without a Licence

Operating a rental property in Lewisham without the required licence is a criminal offence under the Housing Act 2004. The penalties go well beyond a single fine — they stack, and each one carries its own financial and legal consequence.

Civil Penalty Notices

Lewisham can issue a civil penalty notice (CPN) of up to £30,000 per offence for unlicensed letting under section 249A of the Housing Act 2004. The council does not need to go to court — the penalty is issued administratively.

For HMO offences under section 72, the maximum CPN is £30,000. For selective licensing offences under section 95, the same ceiling applies. More serious or repeated breaches can attract higher penalties — the Renters' Rights Act framework sets civil penalties at up to £7,000 for initial compliance breaches and £40,000 for serious or repeat contraventions.

Each property and each day of unlicensed operation can constitute a separate offence. A landlord with two unlicensed flats in the same building faces two distinct penalty proceedings.

Criminal Prosecution

Instead of — or alongside — a civil penalty, the council can refer the case for criminal prosecution. Conviction in the Magistrates' Court carries an unlimited fine. A criminal conviction also creates a formal record that disqualifies the landlord from passing the fit-and-proper person test for future licence applications.

The council chooses between a CPN and prosecution; it cannot impose both for the same offence. In practice, CPNs are more common because they are faster and do not require court time.

Rent Repayment Orders

Tenants — or the local authority — can apply to the First-tier Tribunal (Property Chamber) for a rent repayment order (RRO) against an unlicensed landlord. The tribunal can order repayment of up to 12 months of rent under the existing framework, extending to 24 months under the Renters' Rights Act 2025 framework.

This is a separate claim from any penalty the council imposes. A tenant who discovers the property is unlicensed can pursue an RRO regardless of whether the council has taken enforcement action. The public register on the MetaStreet portal makes it straightforward for tenants to check whether a property is licensed.

RRO applications are becoming more common. Reddit threads and tenant advice forums routinely flag the Lewisham public register as the first step for tenants suspecting unlicensed letting.

Possession Restrictions

The Renters' Rights Act 2025 phases out Section 21 "no-fault" evictions and converts existing assured shorthold tenancies into assured periodic tenancies. Operating an unlicensed property in a designated Lewisham area continues to restrict a landlord's ability to recover possession under the applicable rules.

Banning Orders and the Rogue Landlord Database

For serious or repeat offenders, Lewisham can apply for a banning order under the Housing and Planning Act 2016, prohibiting the landlord from letting property for a period ranging from 12 months to a lifetime ban. Banned landlords are entered on the national Rogue Landlord Database.

The Enforcement Process

Lewisham follows a statutory procedure before imposing a civil penalty:

1. Notice of Intent — the council serves formal notice detailing the alleged offence, the facts and the proposed penalty amount.
2. Representation period — the landlord has 28 days to submit written representations and evidence in mitigation.
3. Final Notice — the council reviews representations and issues a final determination with the confirmed penalty.
4. Tribunal appeal — the landlord can appeal to the First-tier Tribunal within 28 days of the Final Notice. The tribunal conducts a full rehearing and can confirm, reduce or cancel the penalty.

Lewisham's Inspection Target

The council has set a target to inspect 60% of all private rented sector properties in the borough by 2029. This is not a passive scheme — the council is actively identifying unlicensed properties through the public register, council tax records, tenancy deposit data and tenant complaints.

Enforcement priorities tend to focus on properties where tenant complaints have been filed, where the property is listed on rental platforms without a licence number, or where the council's own records show a gap between the number of known PRS properties and the number of licences issued.

What Duly-Made Protection Means

If you have submitted a complete application and paid the Part A fee, the application is "duly made" and you are protected from prosecution while it is pending. This protection applies from the date of payment, not the date the council processes the application. Keep the payment confirmation and submission receipt — they are your evidence if enforcement action is threatened during the processing window.

The Lewisham Landlord Licensing Guide covers the full penalty framework across all three schemes, the enforcement timeline, and what to do if you receive a Notice of Intent.

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