In a significant ruling, a tribunal has ordered a landlord to repay £263,555.68 to tenants of two unlicensed Houses in Multiple Occupation (HMOs) in Hackney, East London. This is one of the largest rent repayment orders (RROs) made in recent years and sends a crystal-clear message to landlords: fail to comply with your licensing obligations, and the penalties can be severe.
For landlords and letting agents, this is an essential case to understand — not just for its outcome, but for what it teaches us about the law, licensing requirements, and how RROs are calculated.
Background of the Case
The properties in question, were being operated as HMOs without the mandatory licences that were required. The tribunal heard evidence of hazardous living conditions, including fire risks and severe disrepair and found that the landlord’s companies were in breach of their statutory obligations and had failed to meet basic safety and quality standards required by law.
As a result of the above, the tenants were successful in their application for a Rent Repayment Order under the Housing and Planning Act 2016.
Offences Entitling A Tenant To Apply For A Rent Repayment Order
Landlords can face an RRO if they commit one of several housing offences, including:
- Failure to licence an HMO (Section 72, Housing Act 2004),
- Failure to obtain a selective licence (Section 95, Housing Act 2004),
- Breach of an improvement notice (Section 30, Housing Act 2004),
- Unlawful eviction or harassment (Section 1, Protection from Eviction Act 1977).
How Damages Are Calculated
Under Section 43(2) of the Housing and Planning Act 2016, the tribunal can order repayment of up to 12 months’ rent per tenant.
The tribunal considers a range of factors when assessing rent repayment amounts:
- Severity and duration of the offence,
- Conduct of the landlord, including prior history,
- Any mitigating circumstances, such as cooperation,
- Whether the landlord acted in the course of business.
In this case:
- Tenants received awards based on individual circumstances, including length of occupation and the level of disrepair.
- Some tenants were awarded the full 12 months’ rent.
- The total figure of £263,555.68 reflected both the seriousness of the offence and the tribunal’s clear intention to deter future breaches.
