Penalty for No Landlord Licence in Thurrock: Fines and Rent Repayment Orders

The Offence

Operating a licensable property without a licence — or without having submitted a valid ("duly made") application — is a criminal offence under Section 95 of the Housing Act 2004 for selective licensing and Section 72 for HMO licensing. This applies to every privately rented property in Thurrock's 16 designated selective licensing wards and to HMOs borough-wide.

Criminal Prosecution

Thurrock Council can prosecute in the Magistrates' Court. Conviction carries an unlimited fine. There is no cap. The council decides whether prosecution is proportionate based on the severity and duration of the offence, the landlord's compliance history and whether the failure was deliberate.

Civil Penalty Notices

As an alternative to prosecution, the council can issue a civil penalty notice (CPN) under Section 249A of the Housing Act 2004. The maximum is £30,000 per offence for HMO licensing breaches and up to £40,000 for certain selective licensing breaches. A CPN is not a fine imposed by a court — it is an administrative penalty issued directly by the council.

Each property counts as a separate offence. A landlord with three unlicensed properties in Thurrock faces three separate CPNs.

Rent Repayment Orders

Tenants can apply to the First-tier Tribunal (Property Chamber) for a rent repayment order (RRO) against a landlord who has operated an unlicensed property. For offences committed on or after 1 May 2026, the tribunal can order repayment of up to 24 months' rent; for earlier offences, the limit is 12 months' rent. Where rent was paid through Housing Benefit or Universal Credit, the council itself can apply for the RRO and recover the public funds.

This is separate from any fine or CPN. A landlord can face a civil penalty and a rent repayment order for the same period of unlicensed operation.

Eviction Restrictions

From 1 May 2026, landlords cannot issue new Section 21 notices for private assured tenancies under the Renters' Rights Act 2025. To seek possession of such a tenancy, they must use an applicable Section 8 ground and process. Licensing breaches remain subject to separate enforcement.

Interim Management Orders

In extreme cases where a licensable property remains unlicensed and the council sees no realistic prospect of the landlord applying, it can make an interim management order under Section 102 of the Housing Act. The council takes direct control of the property — collecting rent, managing tenants and arranging repairs — at the landlord's expense.

The Real Cost

The financial exposure from unlicensed operation dwarfs the licence fee. A selective licence costs £1,034.90 at the standard rate. A civil penalty for certain selective licensing breaches can reach £40,000. For an offence committed on or after 1 May 2026, a rent repayment order on a property charging £900 per month could reach £21,600 for 24 months. Factor in legal costs and potential reputational damage through the public register, and the decision to apply is straightforward.

For the complete application walkthrough and fee schedule, see our Thurrock landlord licensing guide.

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