Rent Repayment Order Hounslow: What Unlicensed Landlords Face

A Rent Repayment Order is one of the most punishing consequences of operating without an HMO licence, and since the Renters' Rights Act 2025 expanded the maximum from 12 to 24 months' rent, the financial exposure has doubled.

How Rent Repayment Orders Work

Under sections 73–74 of the Housing Act 2004, if a landlord commits a housing offence — including operating an unlicensed HMO under section 72 — their tenants can apply to the First-tier Tribunal (Property Chamber) for an order requiring the landlord to repay rent.

The Renters' Rights Act 2025 increased the maximum RRO award from 12 months' rent to 24 months' rent. The tribunal decides the exact amount based on the landlord's conduct, the seriousness of the offence, the landlord's financial circumstances and whether they have previous convictions or penalties.

Hounslow Council can also apply for an RRO to recover housing benefit payments made during the unlicensed period.

The Financial Exposure

Each tenant in the property can make a separate RRO application. In a three-person HMO charging £650 per room per month:

• One tenant's maximum claim: £650 × 24 = £15,600
• Three tenants' combined maximum: £46,800

Add a civil penalty from the council (up to £40,000) and the total reaches well over £80,000 — before legal costs.

The maximum is 24 months' rent, but the tribunal sets the award based on the circumstances of the case. Landlords should not assume that the full maximum will be ordered.

Tenants Can Apply Independently

A tenant does not need the council to prosecute or issue a civil penalty first. They can apply directly to the First-tier Tribunal on their own. In practice, many RRO applications follow a council investigation — the tenant learns the property was unlicensed and files a claim — but there is no procedural dependency.

Tenants must usually demonstrate that the offence was committed (the property was an HMO within scope of licensing and the landlord had not applied). Since the HMO status is often evident from the tenancy arrangements, this threshold is not difficult to meet.

Defences and Limitations

The main defences available to a landlord facing an RRO are:

• Reasonable excuse — whether this defence applies depends on the circumstances. Do not assume that lack of awareness of Hounslow's borough-wide scheme is enough to establish it.
• Duly made application — if a valid application was pending at the time, the offence of operating without a licence does not apply for that period (section 72(4)). The RRO can still cover the period before the application was submitted.
• Tribunal discretion — the tribunal considers all circumstances and may reduce the award. Landlords who cooperated with the council, applied promptly once notified, and maintained the property in good condition may see lower awards.

How RROs Interact with Council Penalties

The council can pursue a civil penalty and a tenant can pursue an RRO for the same period of unlicensed operation. They are separate proceedings: one is enforcement by the local authority, the other is a tenant remedy. There is no double jeopardy bar because they are different types of action.

This means a landlord can face a £40,000 civil penalty from the council and £40,000+ in RRO claims from tenants, all arising from the same unlicensed property.

Avoiding the Risk

The simplest protection is having a valid licence or a duly made application pending. Even if the application takes months to process, the statutory protection from section 72(4) prevents the offence from being committed during the wait — which eliminates the basis for both civil penalties and RROs for that period.

Our Hounslow Landlord Licensing Guide covers the full application process, so you can reach duly made status and close off this exposure as quickly as possible.

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