First-tier Tribunal upholds a full 12-month rent repayment order against a landlord found to have operated a property as an HMO without the required mandatory licence.
The First-tier Tribunal (Property Chamber) has upheld a full 12-month rent repayment order against a landlord found to have operated a property as an HMO without the required mandatory licence. The decision confirms the Tribunal's established approach of awarding near-maximum repayment orders where the landlord cannot demonstrate reasonable steps were taken to obtain a licence.
The landlord argued that the property did not meet the definition of an HMO by virtue of the tenants' relationship. The Tribunal rejected this argument, applying the Housing Act 2004 definition and finding that the occupiers were not members of the same household. The full rent paid by all occupiers over the 12-month period was ordered to be repaid.
This decision is consistent with recent Tribunal jurisprudence on mandatory HMO licensing. Landlords who are uncertain whether a property requires an HMO licence, mandatory or additional, should seek clarification from their local housing authority before letting commences. Operating an unlicensed HMO exposes landlords to criminal prosecution and rent repayment orders.
Action required
If uncertain whether a property requires an HMO licence, seek clarification from your local housing authority before letting commences.
Effective
Decision published 14 April 2026
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