Penalties for unlicensed properties

The council has an enforcement policy which details how we deal with breaches of the legislation. The service also has a policy which details specifically with how we deal with offences related to property licensing. Operating an unlicensed property that should be licensed can result in a criminal conviction and an unlimited fine or a Financial Penalty of up to £30,000.

Any convictions can affect the fit and proper person status and could therefore result in limitation in being able to manage a licensable property in future. The landlord can also be subject to;

Rent repayment Orders (RROs). If you live in a HMO that should be licensed but isn't, your landlord can be fined and ordered to repay up to 12 months' rent (or housing benefit to the Council).
Reduced Capability to Evict. Many people living in HMOs have an assured shorthold tenancy. If you're an assured shorthold tenant and the HMO should be licensed but isn't, any section 21 notice (two months' notice to leave) your landlord gives you is not valid.
The Renters' Rights Act 2025 abolishes Section 21 from 1 May 2026. Landlords of unlicensed properties cannot use the no-fault possession grounds under the Renters' Rights Act 2025. Tenants and the Council may pursue strengthened Rent Repayment Orders under that Act.