Council urges tenants to seek Rent Repayment Orders for unlicensed HMOs

Council urges tenants to seek Rent Repayment Orders for unlicensed HMOs

Bromley council is encouraging tenants living in unlicensed Houses in Multiple Occupation (HMOs) to apply for Rent Repayment Orders (RROs) to recover rent paid during periods of non-compliance by landlords.

Bromley council has taken a firm stance against unlicensed HMOs, highlighting a recent case where a landlord was fined £27,500 for operating a licensable HMO without the required licence. The council is now urging tenants who have lived in such properties to consider applying for Rent Repayment Orders, which can allow recovery of up to two years’ rent.

Enforcement action and Rent Repayment Orders

The council’s enforcement approach involves using its powers to pursue landlords who fail to comply with HMO licensing requirements. In the cited case, the landlord’s appeal against the penalty was struck out, and the council is in the process of recovering the fine. Bromley council maintains a public licence register, enabling tenants to verify whether their property holds a valid HMO licence.

Rent Repayment Orders are a legal mechanism under which tenants can reclaim rent paid during periods when the landlord has failed to obtain the necessary HMO licence. The council emphasises that tenants living in unlicensed HMOs may be eligible to apply for these orders and recover rent covering up to two years.

Additionally, Bromley council uses Article 4 Direction powers to restrict the creation of new HMOs in certain areas, aiming to manage housing stock and maintain standards. The council stresses that licensing and housing standards are designed to protect tenants and ensure properties are properly maintained.

Context of HMO licensing and landlord obligations

HMO licensing is a critical regulatory tool to ensure that properties rented to multiple tenants meet safety and management standards. Local authorities have the power to require landlords to obtain licences for HMOs, which typically include properties rented to three or more tenants forming more than one household.

Failure to obtain a licence where required can result in significant penalties, including fines and Rent Repayment Orders. This enforcement framework aims to improve housing conditions and protect tenants from substandard accommodation and negligent landlords.

For landlords, compliance with HMO licensing is not optional. The licensing process involves meeting specific property standards, management requirements, and safety regulations. Non-compliance risks financial penalties and reputational damage, as well as potential legal action from tenants seeking rent repayment.

Practical implications for landlords and agents

Landlords managing HMOs should regularly check whether their properties require licensing and ensure they have the appropriate licences in place. This includes verifying local authority requirements, as licensing criteria and Article 4 Directions can vary between councils.

Letting agents and property managers must also be vigilant in confirming licence status before taking on HMO properties. Failure to do so can expose agents to reputational risk and complicity in non-compliance.

Tenants now have increased awareness and access to information about licensing status, which means landlords are more likely to face scrutiny. Rent Repayment Orders offer tenants a financial remedy, increasing the stakes for landlords who neglect licensing obligations.

Areas of uncertainty and ongoing monitoring

While the council’s enforcement approach is clear, the precise impact on landlord behaviour and the volume of Rent Repayment Order applications remains to be seen. It is also uncertain how many tenants are fully aware of their rights to seek RROs or have the means to pursue them.

Landlords should monitor developments in local licensing policies and enforcement trends, particularly regarding Article 4 Directions, which can restrict HMO conversions and affect portfolio planning.

Official guidance on HMO licensing and Rent Repayment Orders continues to evolve, so landlords and agents should regularly consult government and local authority resources to stay compliant.

What landlords should consider now

• Review all HMO properties to confirm licensing status and renew licences promptly where required.
• Check local authority registers and Article 4 Directions to understand licensing boundaries and restrictions.
• Maintain clear records of licensing applications, renewals, and compliance actions to demonstrate good practice.
• Inform tenants about licensing status proactively to reduce disputes and potential Rent Repayment Order claims.
• Work with letting agents to ensure they verify licensing before marketing or managing HMO properties.
• Stay updated on enforcement activity and tenant rights related to Rent Repayment Orders.

Keeping your rental properties compliant with licensing requirements

Membership of The Landlord Association (TLA) provides access to comprehensive compliance resources tailored to HMO licensing and related landlord obligations. Our developing property management platform, ORBIT, currently in BETA testing, offers tools to organise property records, monitor licence statuses, and keep documentation up to date.

ORBIT’s features include the ability to record key compliance actions and maintain evidence of licence renewals and tenant communications, helping landlords and agents prepare for enforcement scrutiny. TLA membership also grants access to expert guidance on navigating local licensing schemes and understanding Rent Repayment Order processes.

Explore TLA membership and learn more about ORBIT BETA access to support your portfolio management and compliance efforts effectively.

Landlords should use these resources to ensure they meet their legal responsibilities and reduce the risk of costly penalties or rent repayment claims.

Looking ahead, landlords must remain vigilant as councils increase enforcement of licensing regulations and tenants become more empowered to seek redress for unlicensed HMOs.

Sources: Landlord Today