Penalties for unlicensed letting
Letting a property that needs a licence without one is a serious matter, and the penalties increased in 2026. Here is exactly what you are exposed to, and how to avoid it.
Civil penalties and fines
A council can impose a civil penalty of up to £40,000 per offence as an alternative to prosecution (raised from £30,000 on 1 May 2026). Alternatively it can prosecute, and the court can impose an unlimited fine.
Related breaches carry their own penalties: failing to register on the PRS Database can bring up to £7,000, rising to £40,000 for serious or repeat breaches.
Rent repayment orders
A tenant (or the council) can apply to the tribunal for a rent repayment order. For offences committed on or after 1 May 2026 this can be up to 24 months' rent, doubled from the previous 12-month cap.
This means an unlicensed landlord could be ordered to repay up to two years of rent, on top of any civil penalty, and superior landlords in rent-to-rent chains can now be caught too.
Banning orders and possession
Serious or repeat offenders can be given a banning order preventing them from letting property, and be entered on a national rogue landlord database.
Being unlicensed also affects possession. While unlicensed you cannot rely on certain possession routes, and once the PRS Database is live, courts can refuse possession to unregistered landlords.