Newham Penalty for Letting Without a Licence: Fines, RROs and Prosecution

Newham has prosecuted more landlords for licensing offences than almost any other London borough. The council's enforcement posture is aggressive by design — large fines, public prosecution and rent repayment applications are routine, not exceptional. If you are letting a property in Newham without the correct licence, the potential consequences go well beyond a fixed penalty.

The Offences

Letting a licensable property without a valid licence or a pending application is a criminal offence under two provisions of the Housing Act 2004:

• Section 72(1) — operating an HMO that requires a licence without one (Parts 2, additional and mandatory)
• Section 95(1) — operating a property that requires a selective licence without one (Part 3)

Breaching licence conditions after a licence is granted is a separate offence under sections 72(2) and 95(2). And providing false or misleading information in a licence application is an offence under section 238.

Civil Penalty Notices

Newham Council can issue a Civil Penalty Notice as an alternative to prosecution. The maximum penalty is now £40,000 per offence under section 249A of the Housing Act 2004; this replaced the previous £30,000 cap from 1 May 2026.

The council follows a statutory process: Notice of Intent (setting out the proposed penalty and reasons), a 28-day representation period for the landlord to respond with written objections, and then a Final Notice confirming or adjusting the penalty.

Civil penalties are enforced as county court debts if not paid. They also count against the landlord in future Fit and Proper Person assessments — a penalty for one property makes it harder to obtain or keep a licence for another.

Criminal Prosecution

Instead of a civil penalty, the council can prosecute. A conviction in the Magistrates' Court carries an unlimited fine. Prosecution results in a criminal record, which automatically triggers a Fit and Proper failure for future licence applications and can lead to a Banning Order.

In November 2024, Newham prosecuted a managing agent for operating an overcrowded, unlicensed HMO in East Ham. The court imposed fines and prosecution costs totalling £63,977.19.

The choice between civil penalty and prosecution is the council's. They tend to prosecute in cases involving repeat offenders, overcrowding, serious hazards, or deliberate concealment.

Rent Repayment Orders

Independently of any council enforcement, tenants can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) against a landlord who has committed a licensing offence. Newham Council can also apply on behalf of tenants who were receiving housing benefit or Universal Credit.

The tribunal must be satisfied beyond reasonable doubt that the landlord committed the offence. The maximum award is 24 months of rent under the Renters' Rights Act 2025 reforms (previously 12 months). The order applies to rent paid during the period of unlicensed operation — so if the property was unlicensed for two years, the full two years of rent is potentially claimable.

RROs are a civil remedy. They can be awarded alongside a civil penalty or following a criminal prosecution — the landlord faces both the fine and the rent repayment.

Banning Orders and the Rogue Landlord Database

For serious or repeat offences, Newham can apply to the First-tier Tribunal for a Banning Order under Part 2 of the Housing and Planning Act 2016. This prohibits the landlord from letting any residential property or engaging in property management for a minimum of 12 months, potentially for life.

Landlords subject to banning orders are entered on the national Rogue Landlord Database, which local authorities can search when processing future licence applications.

Management Orders

In extreme cases — typically involving persistent non-compliance, overcrowding and serious hazards — the council can apply for an Interim or Final Management Order under Part 4 of the Housing Act 2004. This gives the council direct control of the property: they collect the rent, manage the tenancy and carry out repairs, all at the landlord's expense.

The Statutory Defence

A statutory defence against prosecution for operating without a licence is that an application has been "duly made" and is pending determination. The defence applies once Newham has received and verified a complete application with all required documents and the Part A fee. An application missing documents or payment does not qualify.

A Temporary Exemption Notice (TEN) can provide up to six months of exemption if the property is actively being taken out of the rented sector — for example, you are serving notices to regain vacant possession or converting the property back to a single dwelling. TEN applications must be made through the portal with evidence of the specific steps being taken. Delay tactics are refused.

The Newham Landlord Licensing Guide walks through the complete enforcement landscape — including how to establish the statutory defence, what the council's penalty calculation methodology looks like, and the First-tier Tribunal appeal process if you receive a civil penalty you want to challenge.

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