A person commits an offence under Section 72 of the Housing Act 2004 if he or she is a person having control of or managing an HMO which is required to be licensed under the additional or mandatory licensing schemes but which is not so licensed.
In practice, a local authority will allow landlords a reasonable time to approach the council to apply to license their properties. In cases where the council discover a licensable HMO which has not been licensed, the landlord or manager involved will be given the opportunity to apply for the licence.
Where necessary, the council will consider instigating legal proceedings for failure to licence a HMO in accordance with our enforcement policy. The maximum fine is currently £20,000 on conviction.
You should be aware of the following:
Rent repayment orders
A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of twelve months).
Councils can also reclaim any housing benefit that has been paid during the time the property was without a licence. This will only apply where the person having control of or managing the HMO (and therefore responsible for licensing the premises), is also the person having control of the dwelling concerned.
Restrictions on termination of tenancies
Tenants living in a property that should have been licensed, but was not, cannot be evicted by serving a Section 21, Housing Act 1988 Notice, until such time as the HMO is licensed or a management order is in place. This will only apply where the person having control of or managing the HMO (and therefore responsible for licensing the premises) is also the person having control of the dwelling concerned.