Tribunal orders £25,500 rent repayment over unlicensed flat
A landlord has been ordered to repay more than £25,500 to three tenants after letting a flat without the required licence.
The case concerned a flat in Bayswater in London. Three tenants applied for a rent repayment order (RRO) under section 41 of the Housing and Planning Act 2016.
They alleged that the landlords had committed an offence under section 72(1) of the Housing Act 2004 by controlling or managing a house in multiple occupation (HMO) without the necessary licence from Westminster City Council.
The tenants claimed a total of £36,489, representing the rent they had paid during the period of the offence.
The First-tier Tribunal (Property Chamber) found that the property was an HMO requiring a licence and that none had been obtained. It rejected the respondents’ argument that they were not the relevant landlords. The tribunal held that they were the parties who granted the tenancies and received the rent and therefore had responsibility for licensing.
The tribunal also dismissed claims that there was a reasonable excuse for the lack of a licence. It noted that responsibility rests squarely with landlords to ensure compliance before renting out a property.
Under section 44 of the 2016 Act, the tribunal considered the seriousness of the offence, the landlords’ conduct and any mitigating factors. Applying the statutory guidance, it concluded that a repayment at 70% of the rent paid was appropriate.
It therefore ordered the landlords to repay a total of £25,542 to be divided between the three tenants.
In addition, the tribunal ordered the landlords to pay £420 in tribunal fees.
The decision underlines that landlords cannot avoid liability by shifting responsibility for licensing, and that failure to obtain the correct HMO licence can result in substantial financial penalties. Rent repayment orders can reach up to 12 months of rent, and tribunals will apply significant reductions only where mitigating factors justify them.
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