PRSCheck

Rent Repayment Orders: what they cost a landlord

A Rent Repayment Order is a tenant-driven claim, not a council one. Your tenant applies to the tribunal, the tribunal decides for itself whether an offence was committed, and for offences on or after 1 May 2026 it can order up to 24 months' rent repaid. It sits alongside the council's civil penalty of up to £40,000, not instead of it.

What changed in 2026

  • The cap doubled, from 12 to 24 months' rent, for offences committed on or after 1 May 2026. The uplift is England-only; Wales stays at 12.
  • The application window doubled, from 12 months to 24, so a former tenant can come back two years later.
  • The civil penalty maximum rose to £40,000 per offence, and section 21 no-fault possession was abolished on the same date.

What it looks like in money

A single let at £1,400 a month, unlicensed for 20 months, with no utilities included in the rent:

Rent across the unlicensed period
£28,000
Likely order, at 40% to 75%
£11,200 to £21,000
Plus a council civil penalty, up to
£40,000

That is one tenant. In a licensable HMO each occupier claims the rent they personally paid over the same period, so a five-person share is five claims on the same set of facts.

Under section 44(4) of the Housing and Planning Act 2016 the tribunal must take into account the conduct of the landlord and of the tenant; the financial circumstances of the landlord; whether the landlord has ever been convicted of an offence to which the rent repayment order provisions apply. A first offence, promptly regularised, is treated differently from a portfolio landlord who has been penalised before.

The two defences

Both are statutory, and the first is the reason to act today rather than after a letter arrives.

A licence application was already in (Housing Act 2004 s.72(4), s.95(3))
No offence is committed if an application for a licence had been duly made and was still effective, or a temporary exemption notice was in force, for the whole of the period complained about.
Reasonable excuse (Housing Act 2004 s.72(5), s.95(4))
It is a defence that the landlord had a reasonable excuse for the property being unlicensed. The tribunal decides what counts, and simply not knowing about the scheme has repeatedly failed as an excuse.

The practical consequence is blunt. If your property is inside a designation and unlicensed, a duly made licence application stops the clock on the offence. Every month you wait is another month of rent inside a potential claim, and the window now runs for two years after it ends.

Find out whether your property is inside a designation

Free check of every live selective, additional and mandatory HMO scheme covering that postcode.

Free scheme check · £7.99 for the full property report

The £7.99 report gives the property-specific verdict on your exact address and occupancy, the scheme dates and fees, and the order to do things in.

Common questions

Can a tenant claim without the council prosecuting me?

Yes. The First-tier Tribunal decides for itself whether the offence was committed, to the criminal standard of beyond reasonable doubt. No conviction, and no council civil penalty, is needed first. A council penalty and a tenant's rent repayment order can both follow from the same offence.

How much is a rent repayment order likely to be?

The cap is 24 months' rent for an offence committed on or after 1 May 2026, and it cannot exceed the rent actually paid. Tribunals follow Acheampong v Roman [2022] UKUT 239 (LC): deduct any part of the rent that paid for utilities the tenant alone consumed, then apply a percentage for seriousness, then adjust for the section 44(4) factors. Awards for straightforward licensing breaches commonly land between 40% and 75% of rent after utilities.

Does a pending licence application protect me?

Yes, for the period it is effective. Under section 72(4) and section 95(3) of the Housing Act 2004 no offence is committed while a duly made application is effective, or while a temporary exemption notice is in force. This is the single most useful thing a landlord who has just discovered a scheme can do.

Is not knowing about the scheme a defence?

There is a reasonable excuse defence at section 72(5) and section 95(4), and the tribunal decides what counts. Being unaware a designation existed has repeatedly failed as an excuse, so it should not be relied on.

Can several tenants claim for the same property?

Yes. Each occupier claims the rent they personally paid over the same unlicensed period, using the same designation evidence. A five-person HMO is therefore five claims, not one.

How long am I exposed for?

Two years. An occupier must apply within 24 months of the offence, and where the offence continued, the last date it was committed must fall inside that window. Former tenants can and do apply after moving out.

Sources

PRSCheck is an information service based on published council designations and national legislation, not legal advice. Take advice from a housing solicitor on any live claim.

We publish the tenant's side of this too, deliberately. Knowing exactly what they will be told is useful.

What tenants read about Rent Repayment Orders →