Liverpool Rent Repayment Orders: What Unlicensed Landlords Need to Know

What a Rent Repayment Order Is

A rent repayment order (RRO) is a Tribunal order requiring a landlord to repay rent to tenants — or to the local authority if housing benefit was paid. It's a financial remedy under Chapter 4 of the Housing and Planning Act 2016, available when a landlord commits certain housing offences, including operating a property without the required selective or HMO licence.

The key change from 1 May 2026: for qualifying offences committed on or after that date, the Renters' Rights Act 2025 doubled the maximum recoverable period from 12 months to 24 months of rent. Earlier offences remain subject to the previous one-year cap. For a tenant paying £700 a month, a qualifying post-change claim could be up to £16,800 before any tribunal adjustments.

RROs run independently of council enforcement. A tenant can apply even if the council hasn't issued a civil penalty, and the council can pursue a civil penalty even if no tenant applies for an RRO. In the worst case, a landlord faces both simultaneously.

How the Tribunal Decides

Applications go to the First-tier Tribunal (Property Chamber). The Tribunal must be satisfied beyond reasonable doubt — the criminal standard, not the civil balance of probabilities — that the landlord committed a licensing offence. This is a high bar, which means the evidence needs to be clear: the property was in a designated ward, it required a licence, no licence was in force, and the landlord was the person having control or person managing.

For the award amount, the Tribunal follows the methodology in Acheampong v Roman [2022] UKUT 239 (LC):

1. For a qualifying offence committed on or after 1 May 2026, calculate the total rent paid over the eligible period (up to 24 months); earlier offences remain subject to the one-year cap
2. Deduct any utility charges genuinely paid by the landlord
3. Adjust the figure based on the landlord's conduct (deliberate evasion vs genuine ignorance), the tenant's conduct, and whether the landlord is a professional operator

A landlord who immediately applied for a licence once they became aware of the requirement will typically face a lower award than one who knowingly operated unlicensed for years. But the Tribunal doesn't have to reduce the award — it has discretion to order repayment of the full amount.

Who Can Apply

Any tenant who paid rent during the unlicensed period can apply. In a shared house, each tenant can submit a separate RRO application for their share of the rent. For qualifying offences committed on or after 1 May 2026, five tenants each paying £500 a month over 24 months could create a combined exposure of £60,000 — before the council's own civil penalty.

Local authorities can also apply for RROs where housing benefit or universal credit housing element was paid for the unlicensed property. This means even if the tenant doesn't pursue a claim, the council might.

The Practical Timeline

A tenant (or former tenant) typically applies after discovering the property was unlicensed — sometimes during a dispute, sometimes prompted by council enforcement action becoming public, sometimes when checking the licensed properties register.

The Tribunal process takes several months from application to hearing. Landlords receive notice of the application and have the opportunity to submit a response. Legal representation isn't required but is advisable for larger claims.

The Tribunal's decision is binding and enforceable as a court order. Non-payment can lead to further enforcement proceedings.

Why This Matters Beyond Liverpool

RROs are a national remedy, not a Liverpool-specific one. Any unlicensed property in any selective or HMO licensing area in England is exposed. But Liverpool's combination of wide selective licensing coverage (39 wards, ~80% of private rented stock), active enforcement, and a large student renter population aware of their rights makes RRO applications more likely here than in many areas.

The students at the University of Liverpool and Liverpool John Moores University have access to guidance from the university housing services and local advice centres. Student unions actively inform tenants about RRO rights. This isn't a theoretical risk.

The Only Real Defence

The simplest protection is to hold a valid licence. An RRO requires proof that no licence was in force — if you have one, there's no claim. If you've applied and the application is pending (duly made, with Part 1 paid), operating during processing doesn't constitute the same offence as never having applied at all.

If you're currently operating without a licence in a designated ward, the priority is to submit a proper application through the LAR portal immediately. Every day without a duly made application extends the potential RRO recovery period.

Our Liverpool Landlord Licensing Guide explains the enforcement framework, including how RROs interact with civil penalties and what steps to take if you've been operating without a licence.

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