What happens if you let an HMO without a licence?

In England, letting a licensable HMO without a licence can mean prosecution, a civil penalty, a rent repayment order and limits on no-fault possession routes. Wales has parallel Housing Act 2004 rules but different mandatory-licensing thresholds and notice names; Scotland and Northern Ireland run separate HMO regimes, and Scotland and Northern Ireland do not have rent repayment orders.

What is an unlicensed or illegal HMO?

An unlicensed HMO is a house in multiple occupation that must have an HMO licence but does not have one; illegal HMO is the common phrase, but the Housing Act 2004 uses unlicensed HMO and says: “For the purposes of this section an HMO is an ‘unlicensed HMO’ if—”. In England, mandatory HMO licensing normally starts where the property “is occupied by five or more persons”; since 2018 there is no three-storey test for England. Wales is different: mandatory licensing still includes the condition that “the HMO or any part of it comprises three storeys or more”, as well as the other Welsh HMO tests. The tenancy is not automatically void just because the HMO is unlicensed: the Act says illegality rules do not affect the “validity or enforceability” of the tenancy or licence. Scotland licenses HMOs from 3 or more occupiers unless exempted, and Northern Ireland also requires every HMO to be licensed unless a temporary exemption notice is in force.

What happens if you let an HMO without a licence?

If you let a licensable HMO without a licence in England, you commit a criminal offence, the council can usually choose a civil penalty instead of prosecution, tenants may seek a rent repayment order, and the licensing problem can affect no-fault eviction routes. The core English and Welsh offence is that, “If an HMO is required to be licensed under this Part (see section 61(1)) but is not so licensed, an offence is committed by—”. GOV.UK states the criminal outcome plainly: “You could get an unlimited fine for renting out an unlicensed HMO.” In England only, a local housing authority may impose a civil penalty where it is satisfied beyond reasonable doubt that the conduct is a relevant housing offence “in respect of premises in England.” Wales keeps prosecution and Welsh rent repayment provisions, but not the English civil-penalty route under section 249A. Scotland and Northern Ireland also make unlicensed HMO operation an offence under their own Acts.

How big is the fine for an unlicensed HMO?

The fine for an unlicensed HMO in England and Wales is unlimited on criminal conviction, while England’s civil penalty is up to £40,000 from 1 May 2026; the £7,000 figure is not the unlicensed-HMO penalty. Section 72 says a person committing the unlicensed-HMO offence “is liable on summary conviction to a fine”, and GOV.UK describes that as an unlimited fine. In England, section 249A now says the civil penalty “must not be more than £40,000”; older council pages still showing £30,000 are stale. The separate £7,000 cap is for non-prosecutable Renters’ Rights Act breaches, because MHCLG says breach means non-compliance where the authority may impose “a civil penalty of up to £7,000 and there is not an option to prosecute.” Wales has no equivalent section 249A civil penalty for this offence. Scotland’s unlicensed-HMO fine is up to £50,000, and Northern Ireland’s is up to £20,000 plus up to £50 per day after conviction while the HMO remains unlicensed.

What is a rent repayment order?

No rent repayment order exists in Scotland or Northern Ireland; Scotland has only a rent relief order that can reduce future rent, not repay rent already paid, and no RRO provision exists in either nation’s HMO Act. In England, a rent repayment order requires a landlord or superior landlord who has committed a qualifying offence to “pay a tenant an amount in respect of rent paid by or on behalf of the tenant”. The First-tier Tribunal can make the order if satisfied beyond reasonable doubt that the landlord committed a qualifying offence, “whether or not the landlord has been convicted.” Wales still uses Housing Act 2004 rent repayment orders for unlicensed HMOs: the Welsh tribunal may order repayment of relevant universal credit, housing benefit or rent. The practical difference is important: England’s RRO regime is now broader and, for post-1 May 2026 offences, longer; Wales remains tied to the older Housing Act 2004 structure.

Which offences can a rent repayment order be made for?

In England, a rent repayment order can be made only for the offences listed in Housing and Planning Act 2016 section 40, while Wales uses a narrower Housing Act 2004 route for unlicensed HMOs and unlicensed houses. England’s section 40 says an RRO offence is one “specified in the table” and committed by a landlord in relation to housing in England let by that landlord. From 1 May 2026, GOV.UK’s tenant guidance says: “You can apply for an RRO if you think you can prove your landlord has committed one of the offences in this list.” That list includes unlicensed HMOs, certain illegal eviction or harassment offences, breach of banning orders, and newer Renters’ Rights Act possession-related offences, but the PRS database and redress-scheme RRO additions were not commenced with the main May 2026 changes. In Wales, an occupier’s unlicensed-HMO RRO generally depends on a conviction under section 72(1), not England’s wider table.

What is the time limit for a rent repayment order?

For an English rent repayment order based on an offence committed on or after 1 May 2026, the tenant normally has 2 years from the offence to apply; for older English offences and Welsh occupier applications, the key period is 12 months. Amended Housing and Planning Act 2016 section 41 gives the 2-year application window for post-1 May 2026 English offences, but that extension does not apply to older cases: the commencement regulation excludes changes “in relation to an offence committed before 1st May 2026”. GOV.UK explains the old English position as: “the maximum amount repayable is one year’s rent rather than two years’ rent, and the tenant must apply within one year of the offence being committed, instead of two years.” In Wales, the Housing Act 2004 route says the application must be made within 12 months beginning with the conviction or earlier RRO event.

Do you need a solicitor for a rent repayment order?

You do not need a solicitor to apply for a rent repayment order in England or Wales, because the legislation lets a tenant apply to the tribunal and tribunal rules allow non-lawyer representation. In England, section 41 says: “A tenant or a local housing authority may apply to the First-tier Tribunal for a rent repayment order against a landlord who has committed an offence to which this Chapter applies.” Tribunal rules say: “A party may appoint a representative (whether legally qualified or not) to represent that party in the proceedings.” GOV.UK also describes the tribunal as “less formal than regular courts and more easily accessible to the public.” That does not mean a solicitor or specialist adviser is pointless: evidence, service, limitation and calculation mistakes still lose cases. England has a market of tenant RRO support groups and no-win-no-fee models; Scotland and Northern Ireland have no rent repayment order scheme to bring.

Can you evict a tenant if your HMO is unlicensed?

In England, an unlicensed HMO no longer creates a special live section 21 problem for new possession notices because section 21 cannot be used at all after 1 May 2026, but possession by section 8 is not automatically barred just because the HMO is unlicensed. The older Housing Act 2004 rule still says: “No section 21 notice may be given in relation to a shorthold tenancy of a part of an unlicensed HMO so long as it remains such an HMO.” The practical post-2026 rule is broader: GOV.UK says, “Landlords cannot use section 21 of the Housing Act 1988 to seek possession of their property,” and “Since 1 May 2026 you can only give your tenant a notice under section 8”. Wales is different: no section 173, section 186, Schedule 12 paragraph 25B or section 194 notice may be given for part of an unlicensed HMO while it remains unlicensed. A duly made, still-effective licence application can stop the property being treated as an unlicensed HMO for that purpose.

What happens if your HMO licence expires?

If your HMO licence expires while the property still needs licensing in England or Wales, the HMO is treated as unlicensed unless a duly made, still-effective renewal or licence application protects you. English and Welsh HMO licences cannot run for more than 5 years, because the Housing Act says the licence period “must not end more than 5 years after” the grant date. Once the licence has expired, the section 72 offence applies if the HMO is required to be licensed but is not licensed. A defence can exist where “an application for a licence had been duly made in respect of the house under section 63”. England’s civil-penalty cap for the offence is now £40,000, not the £30,000 still shown on some council pages. Scotland differs: an HMO licence normally lasts 3 years, or a shorter period of at least 6 months, and representing an expired Scottish HMO licence as still effective is itself an offence. Northern Ireland keeps a timely renewal in force until the statutory renewal decision date.

What happens if you breach HMO licence conditions or the management regulations?

If you breach HMO licence conditions or HMO management regulations in England, you can be prosecuted or face a civil penalty up to £40,000, but the criminal fine for breaching an HMO licence condition is level 5, not unlimited. Section 72(3) licence-condition breaches are capped because the Act says a person committing that offence is liable to “a fine not exceeding level 5 on the standard scale.” The unlimited-fine wording belongs to the separate unlicensed-HMO and over-occupation offences. England’s civil penalty alternative can still be much larger: section 249A says the penalty “must not be more than £40,000.” The £7,000 figure is wrong for HMO licence-condition or management-regulation offences; MHCLG uses breach for non-prosecutable non-compliance where there is “a civil penalty of up to £7,000 and there is not an option to prosecute.” No rent repayment order is authorised just for licence-condition or management-regulation breaches. Scotland caps relevant licence-condition offences at £10,000, and Northern Ireland also caps licence-condition breaches at £10,000.

Are you liable if your tenant sublets and turns the property into an unlicensed HMO?

Yes, since 1 May 2026 a superior landlord in England and Wales can be liable where a tenant sublets and creates an unlicensed HMO, and a no-subletting or occupancy clause is not by itself a defence. The amended section 72 brings in “any person who as landlord under a tenancy or licensor under a licence to occupy has an estate or interest in, or a right in relation to, the HMO that is superior” to the immediate operator. It also says a tenancy or licence term about occupation “does not on its own constitute a defence”. That change matters because some landlords still cite Kumar, where the Upper Tribunal said there was “no basis” for saying the head landlord had to supervise the tenant’s subletting; Kumar was a pre-amendment case and is no longer safe as a stand-alone answer. In Scotland and Northern Ireland, the owner commits the unlicensed-HMO offence unless they have a reasonable excuse, and neither Act makes a no-subletting clause an automatic excuse.

Can you avoid needing an HMO licence?

You can avoid needing an HMO licence only by keeping the property outside the licensing definition or by having a statutory exemption, temporary exemption notice or effective application; you cannot keep running a still-licensable HMO without a licence. In England, mandatory HMO licensing is triggered where the HMO “is occupied by five or more persons,” but that does not defeat additional licensing schemes: Bristol, for example, says its additional licensing includes a house or flat occupied by “3 or 4 unrelated people” sharing facilities. Wales still has a three-storey mandatory HMO test, because the Welsh order requires that “the HMO or any part of it comprises three storeys or more”. Scotland and Northern Ireland are tighter at the national threshold: Scotland’s HMO definition starts with accommodation occupied by “3 or more persons” who are not all one family or one of two families, and Northern Ireland includes accommodation occupied by “3 or more persons as their only or main residence.” Abodient can record each tenancy’s occupiers and flag compliance obligations by jurisdiction, which matters because the licensing trigger is different in England, Wales, Scotland and Northern Ireland.

Last reviewed September 2026.

Sources

• Housing Act 2004 s.73 — “For the purposes of this section an HMO is an ‘unlicensed HMO’ if—”. Source
• Housing Act 2004 s.73 — “No rule of law relating to the validity or enforceability of contracts in circumstances involving illegality is to affect the validity or enforceability of—”. Source
• Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 art.4 — “(a)is occupied by five or more persons;”. Source
• Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (Wales) Order 2006 art.3 — “(a)the HMO or any part of it comprises three storeys or more;”. Source
• Housing (Scotland) Act 2006 s.124 — “Every house in multiple occupation (‘HMO’) must be licensed under this Part unless it is exempted by or under section 126, 127 or 142.” Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.7 — “Every house in multiple occupation (‘HMO’) must be licensed under this Act (unless a temporary exemption notice under section 15 is in effect in respect of it).” Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.1 — “(b)it is occupied by 3 or more persons as their only or main residence (see section 3),”. Source
• Housing Act 2004 s.72 — “If an HMO is required to be licensed under this Part (see section 61(1)) but is not so licensed, an offence is committed by—”. Source
• GOV.UK, House in multiple occupation licence — “You could get an unlimited fine for renting out an unlicensed HMO.” Source
• Housing Act 2004 s.249A — “The local housing authority may impose a financial penalty on a person if satisfied, beyond reasonable doubt, that the person's conduct amounts to a relevant housing offence in respect of premises in England.” Source
• Housing Act 2004 s.72 — “A person who commits an offence under subsection (1) or (2) is liable on summary conviction to a fine.” Source
• Housing Act 2004 s.249A — “The amount of a financial penalty imposed under this section is to be determined by the local housing authority, but must not be more than £40,000.” Source
• MHCLG, Civil penalties under the Renters’ Rights Act 2025 and other housing legislation — “The term ‘breach’ is used to refer to non-compliance by landlords where the local authority may impose a civil penalty of up to £7,000 and there is not an option to prosecute.” Source
• Housing (Scotland) Act 2006 s.156 — “(a)in the case of an offence under subsection (1) or (4)(a) of that section, £50,000,”. Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.30 — “(a)to a fine not exceeding £20,000, and”. Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.30 — “(b)to a further fine not exceeding £50 for every day or part of a day after conviction on which the HMO is required to be licensed under section 7 but is not so licensed.” Source
• Housing and Planning Act 2016 s.40 — “(a)pay a tenant an amount in respect of rent paid by or on behalf of the tenant (whether the rent was paid to the landlord or superior landlord against whom the order is made, or to another person), or”. Source
• Housing and Planning Act 2016 s.43 — “The First-tier Tribunal may make a rent repayment order if satisfied, beyond reasonable doubt, that a landlord has committed an offence to which this Chapter applies (whether or not the landlord has been convicted).” Source
• Housing Act 2004 s.73 — “But amounts paid in respect of rent or other periodical payments payable in connection with such a tenancy or licence may be recovered in accordance with subsection (5) and section 74 (in the case of an HMO in Wales) or in accordance with Chapter 4 of Part 2 of the Housing and Planning Act 2016 (in the case of an HMO in England) .” Source
• Housing Act 2004 s.73 — “the tribunal may make an order (a ‘rent repayment order’) requiring the appropriate person to pay to the applicant such amount in respect of the relevant award or awards of universal credit or the housing benefit paid as mentioned in subsection (6)(b), or (as the case may be) the periodical payments paid as mentioned in subsection (8)(b), as is specified in the order (see section 74(2) to (8)).” Source
• Housing (Scotland) Act 2006 s.144 — “A rent relief order is an order by a private rented housing committee which reduces any rent payable under the tenancy in question by such amount (not exceeding 90% of the rent which would, but for the order, be payable) as may be specified in the order.” Source
• Housing and Planning Act 2016 s.40 — “A reference to ‘an offence to which this Chapter applies’ is to an offence, of a description specified in the table, that is committed by a landlord in relation to housing in England let by that landlord.” Source
• GOV.UK, Rent repayment orders: offences guidance for tenants — “You can apply for an RRO if you think you can prove your landlord has committed one of the offences in this list.” Source
• Housing Act 2004 s.73 — “(a)that the appropriate person has been convicted of an offence under section 72(1) in relation to the HMO, or has been required by a rent repayment order to make a payment in respect of”. Source
• Housing and Planning Act 2016 s.41 — “(b)the offence was committed in the period of 2 years ending with the day on which the application is made.” Source
• Renters’ Rights Act 2025 Commencement Regulations 2026 reg.11 — “(a)in relation to an offence committed before 1st May 2026; or”. Source
• GOV.UK, Rent repayment orders guidance for tenants — “For example, the maximum amount repayable is one year’s rent rather than two years’ rent, and the tenant must apply within one year of the offence being committed, instead of two years.” Source
• Housing Act 2004 s.73 — “(c)that the application is made within the period of 12 months beginning with—”. Source
• Housing and Planning Act 2016 s.41 — “A tenant or a local housing authority may apply to the First-tier Tribunal for a rent repayment order against a landlord who has committed an offence to which this Chapter applies.” Source
• Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 r.14 — “A party may appoint a representative (whether legally qualified or not) to represent that party in the proceedings.” Source
• GOV.UK, Rent repayment orders guidance for tenants — “It is less formal than regular courts and more easily accessible to the public.” Source
• Housing Act 2004 s.75 — “No section 21 notice may be given in relation to a shorthold tenancy of a part of an unlicensed HMO so long as it remains such an HMO.” Source
• GOV.UK, Repossessing your privately rented property after 1 May 2026 — “Landlords cannot use section 21 of the Housing Act 1988 to seek possession of their property.” Source
• GOV.UK, Repossessing your privately rented property after 1 May 2026 — “Since 1 May 2026 you can only give your tenant a notice under section 8 of the Housing Act 1988 to end the tenancy.” Source
• Housing Act 2004 s.75A — “No section 173 notice, no section 186 notice, no paragraph 25B of Schedule 12 notice and no section 194 notice may be given in relation to a standard contract of a part of an unlicensed HMO as long as it remains such an HMO.” Source
• Housing Act 2004 s.73 — “(b)that an application for a licence has been duly made in respect of the HMO under section 63 and that application is still effective (as so defined).” Source
• Housing Act 2004 s.68 — “That period must not end more than 5 years after—”. Source
• Housing Act 2004 s.72 — “(b)an application for a licence had been duly made in respect of the house under section 63,”. Source
• Housing (Scotland) Act 2006 explanatory notes, s.134 — “Section 134 states that an HMO licence lasts for three years, or a shorter period which cannot be less than six months.” Source
• Housing (Scotland) Act 2006 s.154 — “The owner of any living accommodation commits an offence by, without reasonable excuse, representing an HMO licence which has ceased to have effect as having effect in relation to the living accommodation.” Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.21 — “Where an application to renew a licence is made in accordance with section 20, the existing licence has effect until the date mentioned in subsection (2).” Source
• Housing Act 2004 s.72 — “A person who commits an offence under subsection (3) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.” Source
• MHCLG, Civil penalties under the Renters’ Rights Act 2025 and other housing legislation — “No starting point for civil penalties for breaches of licensing conditions under sections 72(3) and 95(2) of the Housing Act 2004 are set out in this guidance, as those conditions may vary substantially between local authorities.” Source
• Housing (Scotland) Act 2006 s.156 — “(b)in the case of an offence under subsection (2), (4)(b) or (5) of that section, £10,000,”. Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.31 — “A person guilty of an offence under subsection (2) or (3) is liable on summary conviction to a fine not exceeding £10,000.” Source
• Housing Act 2004 s.72 — “(b)any person who as landlord under a tenancy or licensor under a licence to occupy has an estate or interest in, or a right in relation to, the HMO that is superior (whether directly or indirectly) to the estate, interest or right of any person within subsection (1A).” Source
• Housing Act 2004 s.72 — “For the purposes of subsection (4B), a term in the tenancy agreement or licence to occupy relating to the occupation of the building or part of the building that is an HMO does not on its own constitute a defence under any of paragraphs (a) to (c) of that subsection.” Source
• Kumar v Kolev [2024] UKUT 255 (LC) — “There was no basis for the FTT’s suggestion that Mr Kumar was obliged to ‘supervise’ the letting of the House to the respondents.” Source
• Housing (Scotland) Act 2006 s.154 — “The owner of an HMO which requires to be licensed under this Part commits an offence if the HMO is not so licensed (unless the owner has a reasonable excuse for not holding an HMO licence).” Source
• Houses in Multiple Occupation Act (Northern Ireland) 2016 s.30 — “(b)the owner does not have a reasonable excuse for not having a licence.” Source
• Housing (Scotland) Act 2006 s.125 — “‘HMO’ means any living accommodation occupied by 3 or more persons who are not all members of the same family or of one or other of two families—”. Source
• Housing Act 2004 s.62 — “If a temporary exemption notice is served under this section, the house is (in accordance with sections 61(1) and 85(1)) not required to be licensed either under this Part or under Part 3 during the period for which the notice is in force.” Source
• Bristol City Council, property licensing — “Additional licensing includes a house or flat that is occupied by 3 or 4 unrelated people who live together and share some facilities including kitchens and/or bathrooms.” Source