Peterborough Rent Repayment Orders: What Landlords Need to Know

What a Rent Repayment Order Is

A rent repayment order (RRO) is a financial claim that forces a landlord to repay rent collected while committing certain housing offences. In Peterborough, the most common trigger is letting a property without the required licence — whether that's a selective licence, additional HMO licence, or mandatory HMO licence.

RROs are applied for through the First-tier Tribunal (Property Chamber), not the courts. Both tenants and the local authority can make an application. A tenant doesn't need the Council's involvement to apply, and the Council doesn't need the tenant's cooperation to bring its own claim.

How Much Is at Stake

The Tribunal can order repayment of up to 24 months of rent. The amount isn't automatic — the Tribunal considers factors including the landlord's conduct, financial circumstances, whether the landlord has been convicted, and the severity of the offence. But the maximum covers two full years of gross rent, which for a Peterborough HMO generating even moderate income adds up to a significant sum.

An RRO applies to Universal Credit housing element payments just as it does to direct rent payments. If the tenant receives housing benefit or Universal Credit, the Council can apply for the housing element to be repaid to it rather than to the tenant.

What Triggers an RRO in Peterborough

The qualifying offences under the Housing and Planning Act 2016 that can trigger an RRO include:

• Letting a property that requires a licence without holding one (the most common scenario in Peterborough, where three licensing schemes are running simultaneously)
• Using violence to secure entry to premises
• Illegal eviction or harassment of occupiers
• Breaching a banning order

For the licensing offence specifically, the Tribunal doesn't need a criminal conviction first. It decides on the balance of probabilities whether the offence was committed. If the property required a licence and didn't have one during the period the tenant was paying rent, that's usually enough.

The Process

A tenant (or the Council) files an application with the First-tier Tribunal. The landlord receives notice and has the opportunity to respond with written evidence. The Tribunal holds a hearing — usually a relatively informal process compared to a full court trial — and makes a determination.

The key dates are the period during which rent was paid while the property was unlicensed. If you obtained the licence partway through a tenancy, only the unlicensed period is covered. If the property has been unlicensed for the entire tenancy, the maximum 24-month claim window applies.

RROs Exist Alongside Other Penalties

An RRO is separate from the civil penalty the Council can impose (up to £40,000) and from any criminal prosecution. A landlord can face a civil penalty and an RRO for the same offence — the penalty goes to the Council, the RRO goes to the tenant. The financial exposure from a single unlicensed property can therefore be considerable: up to £40,000 in penalties plus up to 24 months of rent returned.

How to Protect Yourself

The simplest defence against an RRO is having a valid licence. If you've submitted a duly made application before your licence expires or before a scheme deadline, you're protected while the application is being processed.

If your property straddles the boundary between licensing categories — say you're unsure whether it's a selective or additional HMO situation — resolve the question before tenants move in. Holding the wrong type of licence does not satisfy the requirement to hold the correct one, so confirm the applicable scheme before letting.

For a complete walkthrough of which licence your Peterborough property needs and how to apply, the Peterborough Landlord Licensing Guide covers every step.

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