Penalty for No HMO Licence in Portsmouth

Operating an unlicensed HMO in Portsmouth is a criminal offence under Section 72 of the Housing Act 2004, and the council has two enforcement routes. The financial exposure is severe enough that even accidental non-compliance — a property that drifted into HMO status when a third tenant moved in — can result in five-figure penalties.

Civil Penalties

Portsmouth City Council can issue a civil penalty notice of up to £40,000 per property per offence under Section 249A of the Housing Act 2004. "Per offence" matters: operating without a licence is one offence, but breaching licence conditions or exceeding the permitted occupancy are separate offences, each carrying their own penalty. A property with multiple violations can attract multiple penalties.

The council does not have to take you to court to impose a civil penalty. It issues a Notice of Intention, gives you 14 days to make written representations, and then serves a final penalty notice.

Criminal Prosecution

Alternatively, the council can prosecute in the Magistrates' Court. A conviction for operating an unlicensed HMO carries an unlimited fine. The council chooses one route or the other — it cannot impose a civil penalty and prosecute for the same offence — but prosecution creates a criminal record, which a civil penalty does not.

Rent Repayment Orders

On top of council enforcement, tenants can apply to the First-tier Tribunal (Property Chamber) for a rent repayment order. If the tribunal finds that the landlord committed the offence of operating an unlicensed HMO, it can order repayment of up to 24 months of rent. The council can also apply for an RRO to recover Housing Benefit or the housing element of Universal Credit paid for the property.

For conduct on or after 1 May 2026, the 24-month cap applies to gross rent — not net of deductions.

How Portsmouth Finds Unlicensed HMOs

The Private Sector Housing team cross-references council tax records, electoral roll data and the planning database to identify properties that appear to be shared but are not on the licensed HMO register. Ward-by-ward enforcement sweeps and informational letters to suspected landlords are routine. The council also conducts inspections under Part 1 of the Housing Act 2004, using the Housing Health and Safety Rating System to assess 29 statutory hazards. An existing licence does not shield you from HHSRS enforcement.

The Rogue Landlord Database

Serious or repeat offenders may be entered onto the national Database of Rogue Landlords and face banning orders under the Housing and Planning Act 2016. A banning order prevents you from letting property or engaging in property management for a specified period.

How to Protect Yourself

The simplest protection is a "duly made" application — a complete Metastreet form with Part 1 fee paid and all documents emailed to [email protected]. Once the application is duly made, Section 72(4) provides statutory immunity while the council processes it. A saved draft or a part-paid form does not count.

Our Portsmouth Landlord Licensing Guide covers enforcement in detail, including how to respond to a Notice of Intention and the 28-day appeal window for civil penalties.

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