HMO Licensing
Penalties for Non-Compliance
Failure to apply for a licence for an HMO is an offence and can result in a fine of up to £20,000.
Landlords who operate a licensable HMO without a licence may also, in certain cases, have rent taken off them. This applies to rent paid by tenants or by housing benefit.
If a landlord has been convicted of operating without a licence the local council may apply for a Rent Repayment Order to reclaim money paid to the landlord in housing benefit whilst there was no licence for the property, up to a maximum of 12 months.
Tenants, including former tenants, can also apply for a Rent Repayment Order once the council has been award a Rent Repayment Order for the same property. This would be to reclaim money they have paid themselves as rent during the same period.
What About Appeals?
All appeals against decisions made by local councils regarding HMO licences are made to the Residential Property Tribunal Service.
Applications for Rent Repayment Orders are also made to the Residential Property Tribunal Service.
You can learn more about them by clicking here.