Rent Repayment Orders for Unlicensed Properties: How They Work

What a Rent Repayment Order Is

A Rent Repayment Order (RRO) is a tribunal order requiring a landlord to repay rent that a tenant paid while the landlord was committing certain housing offences. Operating an unlicensed property — whether that means a missing selective licence, additional HMO licence or mandatory HMO licence — is one of the qualifying offences.

RROs were introduced by the Housing Act 2004 and expanded by the Housing and Planning Act 2016. For offences committed on or after 1 May 2026, the Renters' Rights Act 2025 doubled the maximum repayable rent and the time limit for applying from 12 months to 24 months. Earlier offences remain subject to the 12-month limits.

Who Can Apply

Tenants can apply directly to the First-tier Tribunal (Property Chamber). They do not need the council's permission or involvement. A tenant who discovers — or suspects — that their landlord does not hold the required property licence can lodge an RRO application on their own initiative.

Local authorities can also apply for RROs, particularly where the tenant was receiving Housing Benefit or the housing element of Universal Credit. In those cases, the council recovers the public funds paid to the landlord during the period of unlicensed operation rather than the tenant recovering their own payments.

How Much Can Be Ordered

The tribunal can order the landlord to repay up to 24 months of rent paid during the period of unlicensed operation. The amount is at the tribunal's discretion, based on factors including:

• The severity of the offence and whether the landlord knew or ought to have known the property needed a licence
• The landlord's financial circumstances
• Whether the landlord has been convicted or issued a civil penalty for the same offence
• The conduct of both landlord and tenant

In practice, tribunals have ordered a wide range of repayments — from a few months' rent where the landlord had a reasonable excuse for the gap to the full 24-month maximum where the unlicensed operation was deliberate or reckless.

For a Thurrock property renting at £1,200 a month, a maximum-period order would be £28,800. That is nearly 28 times the cost of a standard selective licence (£1,034.90).

The Process

1. The tenant applies to the First-tier Tribunal (Property Chamber) by completing the appropriate form and paying a small tribunal fee
2. The tribunal notifies the landlord and sets a deadline for a written response
3. Both sides submit evidence: the tenant proves they paid rent during a period when the property was unlicensed; the landlord presents any defence or mitigation
4. A hearing takes place (some cases are decided on paper if both parties agree)
5. The tribunal makes its decision — either granting the RRO for a specified amount or dismissing the application

The tenant needs to show two things: that the property required a licence during the period in question, and that they paid rent during that period. Bank statements, tenancy agreements and council licensing records are the main evidence. The council's Section 232 public register — which lists all licensed properties — is often used to demonstrate that a specific address was not licensed.

Defences and Mitigation

A landlord facing an RRO application can argue:

• Reasonable excuse: genuinely did not know the property required a licence and took steps to comply promptly upon discovering the requirement. This is harder to sustain in areas like Thurrock where the council has actively publicised its licensing schemes
• Duly-made application pending: if you had submitted a complete application and were waiting for the council to process it, the property was not technically "unlicensed" in the enforcement sense
• Tenant conduct: if the tenant's own behaviour contributed to the situation (rare, but tribunals consider it)
• Financial hardship: the tribunal may reduce the award if ordering the full amount would cause disproportionate hardship

Having a duly-made application on file before the alleged unlicensed period is the strongest defence. The earlier you apply, the shorter — or non-existent — the window of exposure.

RROs Stack With Other Penalties

An RRO is not instead of other enforcement — it runs alongside it. A landlord caught operating without a licence in Thurrock could face:

• A civil penalty of up to £30,000–£40,000 per offence
• Criminal prosecution with an unlimited fine
• An RRO of up to 24 months' rent
• The Higher Rate licence fee (£1,767.40 instead of £1,034.90) when they eventually apply

These are separate penalties for the same underlying failure. The total financial exposure from a few years of unlicensed operation can easily reach five figures.

The simplest way to avoid all of this is to apply for the right licence on time. Our Thurrock landlord licensing guide helps you identify which licence your property needs and walks through the complete application process, so you can get compliant before exposure starts accumulating.

See more England guides →