Bromley backs tenant rent repayment claims after £27,500 HMO penalty survives appeal

Bromley Council is publicly urging tenants in unlicensed HMOs to consider Rent Repayment Orders (RROs), which materially raises the risk for landlords who are still treating licensing as an administrative issue. The council has highlighted a recent case in which a landlord was fined £27,500 for operating a licensable HMO without a licence; according to Bromley, the penalty was upheld on appeal and is now being recovered.

An unlicensed HMO can lead to two separate claims

The key point is straightforward: an unlicensed HMO in Bromley can lead to two distinct financial consequences.

• The council may impose a civil penalty for housing offences under the Housing Act 2004.
• Tenants may apply to the First-tier Tribunal for an RRO, which can require repayment of up to 12 months’ rent for the offence of managing or controlling an unlicensed HMO.

That 12-month cap matters. Some council messaging and third-party commentary can imply broader recovery, but for this specific offence the statutory limit is 12 months’ rent, not 24 months.

Why the sums escalate quickly in London

For London landlords, the exposure can become significant very quickly. A five-bed shared house charging £850 per room per month produces £4,250 per month in gross rent. Over 12 months, that is £51,000 of potential RRO exposure, before taking account of any civil penalty, legal costs, void periods or works required by the council.

Where rent was paid in part through housing benefit or the housing element of Universal Credit, the local authority may also seek repayment of those amounts through the RRO route.

Bromley is signalling that tenants can check the register

Bromley is also making a practical point to tenants: they can check whether a property is licensed on the public HMO register. Landlords should assume that licence status is now easier for occupiers, advisers and claims firms to verify.

If a property is licensable and missing from the register, that is not a minor technicality. It may become evidence relied on in both enforcement action and an RRO application.

Check licensing rules borough by borough

The first priority is to audit every multi-occupancy property against the licensing rules in each borough where you operate.

In England, mandatory HMO licensing generally applies where five or more people from two or more households share facilities. But that is only the starting point. Many London boroughs also operate additional licensing schemes that capture smaller HMOs.

The exact property types, streets and start dates vary by council, so do not assume one borough’s rules mirror another’s. Check the relevant borough scheme, conditions and public register directly.

Licensing and planning are not the same thing

Landlords should also keep licensing separate from planning, because Bromley has referenced both.

A licence under the Housing Act 2004 does not grant planning permission. In some areas, an Article 4 Direction removes permitted development rights for a change from a family home to a small HMO, meaning planning permission may be needed.

Whether that applies depends on the borough and the location of the property. If you acquired or converted an HMO without checking the planning position, review the planning history now rather than waiting for an inspection.

Get your evidence file in order now

For any HMO, landlords should keep a clear compliance file including:

• the current licence or application receipt
• tenancy agreements
• a full rent schedule
• deposit protection documents
• gas safety records
• the EICR
• smoke and carbon monoxide alarm records
• fire alarm and emergency lighting test logs, where relevant
• repair and inspection records

In an RRO case, weak records can make it harder to dispute the amount claimed or show that the offence period was shorter than alleged.

A late application does not erase earlier exposure

Landlords should not assume that applying late removes the offence. If a property should have been licensed earlier, the period before a valid application may still be scrutinised.

If you identify a gap, apply immediately, keep proof of submission and take advice on the historic exposure. Bromley’s reference to a failed appeal is a reminder that intending to apply is not, by itself, a defence.

Which landlords are most exposed

This risk is particularly acute for three groups:

1. Accidental HMO landlords who started letting by the room and never revisited the licensing rules.
2. Portfolio landlords operating across several boroughs with different additional licensing schemes.
3. Company landlords who assume incorporation changes the licensing requirement; it does not.

What is confirmed, and what is not

What is confirmed is that Bromley is encouraging tenants to use RROs and has publicised a £27,500 penalty that survived appeal.

What is not confirmed from that source is any new borough-wide licensing rule or any change to the national RRO cap. Landlords should respond to the enforcement signal, but act on the basis of the current law rather than assumed new powers.

Practical deadlines for landlords

• By the end of this week: check every shared property you own or manage against the relevant borough’s HMO register and licensing scheme.
• Within 14 days: submit any missing HMO licence applications and compile a digital compliance file for each property.
• Within 30 days: review the planning position, including any Article 4 Direction, for every HMO address in your London portfolio.

This article is general information, not legal advice.