The Consequences to a Landlord of Not Licensing an HMO

With certain exceptions, sections 61 and 63 of the Housing Act 2004 require a house in multiple occupation (HMO) to be licensed by the local housing authority.

Under section 72 of the Housing Act 2004, a person commits an offence if they are in control of or managing an unlicensed HMO or otherwise fail to comply with a license.

Section 40 of the Housing and Planning Act 2016 confers on the First-tier Tribunal the power to make a rent repayment order where a landlord has committed an offence.   

Section 41 permits a tenant to apply for a rent repayment order only if (a) the offence relates to housing that, at the time of the offence, was let to the tenant, and (b) the offence was committed in the period of 12 months ending with the day on which the application is made.

If a successful application is made by or on behalf of a tenant for a rent repayment order, not only might the Tribunal order the rent collected during any unlicensed period to be repaid, but a criminal prosecution could follow resulting in a substantial fine.

Author:

Simon Ingham qualified as a solicitor in Scotland and now practises in England, specialising in probate and property disputes.  If you have a disagreement in England & Wales that relates to a will or inheritance, please e-mail  NewEnquiries-ContentiousProbate@chadlaw.co.uk.  Alternatively, if you have a dispute that refers to land or buildings, please e-mail NewEnquiries-PropLit@chadlaw.co.uk.  Otherwise, if you need advice about any dispute – or wish to try and avoid the possibility of disputes arising – please contact us by phone at 0800 015 0340 or e-mail NewEnquiries-Litigation@chadlaw.co.uk.