Rent Repayment Orders in Salford: What Unlicensed Landlords Risk

A rent repayment order is a tribunal award that forces a landlord to repay rent collected while a property was let without the required licence. In Salford, where multiple licensing schemes run simultaneously, the risk of accidentally operating unlicensed is higher than in most council areas — and the financial consequences have recently increased.

Who Can Apply for a Rent Repayment Order?

Both tenants and Salford City Council can apply to the First-tier Tribunal (Property Chamber) under Sections 40–52 of the Housing and Planning Act 2016. Tenants who paid rent during an unlicensed period can apply directly. A tenant cannot claim rent paid through Housing Benefit or Universal Credit; the council can apply for that portion.

The application doesn't require a criminal conviction. The tribunal makes its own finding of whether the licensing offence occurred.

How Much Can Be Awarded?

For licensing offences committed on or after 1 May 2026, a tribunal can order repayment of up to two years' rent paid during the unlicensed period. For offences before that date, the previous maximum is one year's rent. If an ongoing offence straddles 1 May 2026, the former rules apply to the pre-May period and the new rules to the period from 1 May onward.

For a post-1 May 2026 breach covering a full 24 months, rent of £800 a month gives a maximum possible calculation of £19,200. The tribunal decides the award, considering the landlord's conduct and financial circumstances among other factors.

Section 21 and Unlicensed Properties

Before 1 May 2026, a landlord generally could not use Section 21 if a required licence had neither been granted nor applied for. Private landlords can no longer serve new Section 21 notices from 1 May 2026. A valid notice served before then could be used to start court proceedings only by 31 July 2026; proceedings started by that date may continue.

The Timeline Problem

The key risk in Salford is how long unlicensed operation can persist before a landlord realises there's a problem. Selective licensing designations apply by street address. A landlord who bought a property before the Broughton & Kersal scheme started in January 2026 may not know their street was designated until they receive a council letter — or until the tenant discovers it.

For offences committed on or after 1 May 2026, a tenant generally must apply within two years of the offence; for offences committed before that date, the former one-year application limit applies. For an ongoing licensing offence that crosses 1 May 2026, the tribunal applies the former rules to the earlier period and the new rules from that date onward.

Applying for a licence after being notified doesn't erase the unlicensed period. The council can still issue a civil penalty for the breach, and the tenant can still apply for a rent repayment order covering the months before the application was submitted.

Reducing the Risk

The only reliable defence is holding a valid licence before it's needed. Check every property you own in Salford against the council's street lists for selective licensing, and verify whether any shared properties meet the mandatory HMO threshold.

The Salford Landlord Licensing Guide includes a property-level decision framework and the full application process for every scheme.

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