Rent Repayment Orders for Unlicensed HMOs in Sheffield

A rent repayment order is one of the most financially painful consequences of operating an unlicensed HMO. Unlike a civil penalty (which goes to the council), an RRO puts money back in the tenants' pockets — and since May 2026 the recovery period has doubled.

What Is a Rent Repayment Order?

Under Section 41 of the Housing and Planning Act 2016, a tenant living in a property that should have been licensed but was not can apply to the First-tier Tribunal for an order requiring the landlord to repay rent. Section 44 sets the amount for a tenant's order. The local authority can also apply for an order for Universal Credit paid in respect of rent during the relevant period.

Operating an unlicensed HMO is one of the qualifying offences that triggers an RRO. Others include breaching a banning order and using violence to secure entry.

The 24-Month Recovery Period

Before 1 May 2026, the maximum RRO covered 12 months of rent. The Renters' Rights Act 2025 doubled this to 24 months. For a Sheffield HMO with five tenants each paying £400 a month, that is a potential exposure of £48,000 — far more than the licence fee.

The tribunal does not have to order the full 24 months. It considers:

• The landlord's conduct and whether the failure to licence was deliberate or inadvertent
• The landlord's financial circumstances
• Whether the landlord has previously been convicted or received a civil penalty for a relevant offence
• Any Universal Credit paid in respect of rent, which is deducted under the statutory calculation for a tenant's RRO

The tribunal determines the amount in each case. Do not assume that it will order the full 24 months or any set percentage of rent.

Who Can Apply

Each tenant can make their own application. In a five-person HMO, that means up to five separate RRO applications from the same property. Tenants do not need the council's permission, involvement or cooperation to apply — the application goes directly to the First-tier Tribunal (Property Chamber).

The council can also apply for an RRO independently, seeking repayment of housing benefit paid during the unlicensed period.

The Process

A tenant needs to:

1. Establish that the property was a licensable HMO (five or more occupants living there as their sole or main residence, from two or more households sharing amenities)
2. Show that no valid licence was held during the period in question
3. Apply to the First-tier Tribunal using Form RRO1
4. Attend a hearing if the tribunal lists one; it may decide the application without a hearing

The landlord can defend by showing they had a reasonable excuse — for example, a duly-made application was pending with the council. But "I didn't know I needed a licence" is not generally accepted as a reasonable excuse, particularly where the property clearly met the five-person threshold.

How Landlords Protect Themselves

The most effective protection is straightforward: check the threshold and apply for the licence before letting to five or more people. Once a valid application is duly made (acknowledged by the council with complete documents and Part 1 fee received), the landlord has legal protection against prosecution and RROs while the decision is pending.

The Sheffield landlord licensing guide covers the full timeline from occupancy check through application submission, including how to ensure your application reaches "duly made" status as quickly as possible.

See more England guides →