Rent Repayment Orders for Unlicensed HMOs in England

Operating an HMO without the required licence doesn't just risk a fine from the council. It also gives tenants — and the council itself — the right to apply for a Rent Repayment Order, claiming back rent you've already collected.

What a Rent Repayment Order Is

A Rent Repayment Order (RRO) is a tribunal award requiring a landlord to repay rent to tenants or to the local housing authority. The legal basis is the Housing and Planning Act 2016, as amended by the Renters' Rights Act 2025.

RROs apply to several housing offences, but the most common trigger is operating an unlicensed HMO under s.72(1) of the Housing Act 2004 — running a property that needs a mandatory, additional, or selective licence without having one.

How Much Can Be Claimed

For offences committed on or after 1 May 2026, the maximum recovery window is 24 months of rent — doubled from the previous 12-month limit by the Renters' Rights Act 2025. Earlier offences remain subject to the one-year maximum. A tenant can apply for rent they paid during the relevant period; tenants with separate tenancy agreements may make separate applications for their own rent.

The tribunal doesn't automatically award the full amount. It considers:

• How long the property was unlicensed
• Whether the landlord's failure was deliberate or a genuine oversight
• The landlord's financial circumstances
• The conduct of both landlord and tenant
• Whether the landlord has previously been convicted, received a financial penalty, or had an RRO made for the same offence. For offences from 1 May 2026, the tribunal must award the maximum unless exceptional circumstances apply.

A landlord who applied late but in good faith may face a smaller award than one who deliberately avoided licensing to save on fees.

Who Can Apply

Tenants can apply directly to the First-tier Tribunal (Property Chamber) whether or not the council has taken enforcement action. The tenant doesn't need to prove the landlord was convicted — an RRO is a civil remedy, not a criminal one.

Local housing authorities can also apply for an RRO, directing the repayment to themselves rather than the tenant. This often happens alongside or instead of a civil penalty.

The Application Process

1. The tenant (or council) identifies that the property required a licence during the period they were paying rent.
2. They apply to the First-tier Tribunal using the relevant form. The application fee is currently £100; a separate hearing fee may also be due if the tribunal schedules a hearing.
3. The tribunal may decide the case on the papers. If it schedules a hearing, it considers the evidence and decides the amount, if any, to award.
4. The landlord receives a decision notice and must pay within the specified timeframe.

The application must be made within two years of the offence. For offences committed before 1 May 2026, the former 12-month application limit applies.

Personal Liability Reaches Beyond the Landlord

RRO liability isn't limited to whoever signed the tenancy agreement. Under the Renters' Rights Act reforms, it extends to company directors, officers, and "superior landlords" — meaning you can't shield yourself by operating through a limited company or by delegating management to an agent.

How Landlords Get Caught

Tenants find out their HMO is unlicensed through council public registers, letting agent due diligence checks, or simply by searching online. Every local housing authority must maintain a public register of licensed HMOs under s.232 of the Housing Act 2004, listing property addresses, licence holders, and expiry dates. If a property doesn't appear on the register and no application is pending, the inference is straightforward.

Protecting Yourself

The only reliable protection is to hold a valid licence — or to have a "duly made" application on record. Under s.72(4)(b) of the Housing Act 2004, a landlord is protected from prosecution for operating an unlicensed HMO once the application has been validated by the council (not merely submitted or paid for — the council must confirm it meets all statutory requirements).

If you're unsure whether your property needs a licence, or you need to work through the application from scratch, the HMO licensing guide covers the full process: the threshold test, the documents, fees, and what "duly made" actually means in practice.

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