Newham Rent Repayment Orders for Unlicensed Letting

A civil penalty from the council is not the only financial exposure a Newham landlord faces for letting without a licence. Tenants can independently apply for a Rent Repayment Order through the First-tier Tribunal, claiming back rent they paid during the period the property was unlicensed — and since 1 May 2026, that window stretches to 24 months.

What a Rent Repayment Order Is

A Rent Repayment Order (RRO) is a civil remedy under the Housing and Planning Act 2016. It allows tenants — or local authorities that paid housing benefit or the housing element of Universal Credit — to apply to the First-tier Tribunal (Property Chamber) for repayment of rent paid while a landlord was committing certain housing offences.

Letting a property that requires a licence under Part 2 or Part 3 of the Housing Act 2004 without holding that licence is one of the qualifying offences. In Newham, where virtually every rented property in 21 of 23 wards needs some form of licence, the exposure is widespread.

How Much Can Be Claimed

Before the Renters' Rights Act 2025 reforms took effect on 1 May 2026, tenants could claim back up to 12 months of rent. The Act extended the maximum award to 24 months' rent.

The Tribunal has discretion over the amount. It considers:

• The severity of the offence and whether the landlord knew a licence was required
• The landlord's financial circumstances
• Whether the landlord has been convicted or received a civil penalty for the same offence
• The conduct of both parties

A landlord's conduct can affect the award. A misunderstanding does not change the licensing requirement, so check which licence applies and whether a statutory defence is available.

The Burden of Proof

For a tenant application, the Tribunal must be satisfied beyond reasonable doubt that the landlord committed the offence of unlicensed letting under Section 72(1) or Section 95(1) of the Housing Act 2004. That is the criminal standard of proof, even though an RRO is a civil remedy.

The tenant does not need the landlord to have been prosecuted or fined first. The RRO application is independent of any council enforcement action.

How This Interacts With Council Penalties

An RRO and a council civil penalty can run in parallel. A landlord could face a civil penalty of up to £40,000 from Newham Council and a Rent Repayment Order for up to 24 months of rent from the tenant — for the same period of unlicensed operation.

Newham Council itself can also apply for an RRO to reclaim housing benefit paid in respect of the property during the unlicensed period.

The Defence That Matters

A landlord has a statutory defence against an unlicensed letting offence if they can show that a valid application was "duly made" — meaning it was properly submitted with all required documents and fees. Having a pending application logged on the My Newham portal with the Part A fee paid provides that defence.

The critical word is "duly made." An incomplete application with missing documents or an incorrect scheme selection does not count. If the council rejects the application as deficient, the statutory defence falls away, and the period between rejection and a corrected resubmission is exposed.

What Landlords Should Do

The simplest protection is having a valid licence or a properly submitted pending application at all times. If you're between licences — during a renewal gap, after buying a property, or after tenancy changes that shift the licence type — submit the correct application immediately.

Our Newham landlord licensing guide covers the full application process, including the document checklist that ensures your application qualifies as "duly made" from day one.

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