Penalty for Unlicensed Property in Southwark: Fines, RROs and Enforcement

The Two Enforcement Routes

Southwark Council can deal with an unlicensed property by criminal prosecution in the magistrates' court or by issuing a civil penalty as an alternative to prosecution for the same offence. Both routes carry serious financial consequences.

Criminal prosecution — operating an unlicensed property that requires a licence under the Housing Act 2004 is a criminal offence. Conviction in the magistrates' court can result in an unlimited fine and a criminal record.

Civil penalty — under Section 249A of the Housing Act 2004, the council can issue a financial penalty of up to £40,000 per offence as an alternative to prosecution. This cap was raised from £30,000 as part of the Renters' Rights Act reforms that took effect on 1 May 2026.

Each unlicensed property is a separate offence. A landlord with three unlicensed flats in a converted building faces up to three separate penalties.

Rent Repayment Orders

On top of the council's enforcement, tenants can apply to the First-tier Tribunal (Property Chamber) for a rent repayment order (RRO) against a landlord who has been operating without a licence.

For offences committed before 1 May 2026, the maximum RRO covers 12 months of rent. For offences committed on or after 1 May 2026, the Renters' Rights Act doubled the ceiling to 24 months of rent.

The tenant does not need the council's involvement to apply — they can go directly to the tribunal. The tribunal decides the amount based on the landlord's conduct, the severity of the offence and the tenant's circumstances.

Local authorities can also apply for RROs themselves and keep the recovered funds for enforcement purposes.

The Rogue Landlord Database and Banning Orders

Severe or repeated offences can lead to entry on the national Database of Rogue Landlords and Property Agents, established under the Housing and Planning Act 2016. Banning orders can prohibit an individual from letting residential properties entirely — a career-ending sanction for a landlord.

The Statutory Defence

There is one important protection. Under Sections 72(4) and 95(4) of the Housing Act 2004, a landlord who has submitted a complete licence application — all documents uploaded, all declarations made, Part A fee paid — has a statutory defence against prosecution while the council processes the file.

This defence only works if the application is genuinely complete. An unsubmitted portal draft, a submission with missing documents or a failed payment does not count. The protection runs from the date of submission until the council makes a final decision on the application.

What Triggers Enforcement

Southwark's Private Sector Housing team identifies unlicensed properties through:

• Cross-referencing the public licensing register against tenancy deposit protection databases and council tax records
• Tenant complaints and anonymous reports
• Routine inspections of neighbouring properties
• Letting agent portal data
• Targeted enforcement campaigns in selective licensing wards

Southwark says it issues a warning letter when it becomes aware of an unlicensed property, giving the landlord up to 21 days to apply. It reserves enforcement for landlords who do not apply within that period, or where the property is unsafe or has serious housing-standard breaches. If the council pursues a civil penalty, its Notice of Intent starts a separate 28-day period for written representations.

Appealing a Penalty

A landlord who receives a civil penalty can make written representations during the 28-day notice period. If the council proceeds, it issues a Final Notice. The landlord then has 28 calendar days to appeal to the First-tier Tribunal. Missing that deadline means the penalty stands.

An appeal against a civil penalty under Section 249A of the Housing Act 2004 must be filed using Form HO4. Informal complaints to the council do not extend or pause the 28-day appeal window.

For a full breakdown of enforcement risks and the application process that provides statutory protection, see the Southwark licensing guide.

See more England guides →