A rent repayment order is an order made by the First-tier Tribunal (Property Chamber) requiring a landlord to repay to a tenant some or all of the rent paid during a period in which the landlord committed a specified offence. They were introduced by the Housing Act 2004 for HMO licensing offences and significantly expanded by the Housing and Planning Act 2016.
The relevant offences include controlling or managing an unlicensed HMO, failing to comply with an improvement notice or prohibition order, illegal eviction under the Protection from Eviction Act 1977, using violence to secure entry to premises, and breach of a banning order made under the Housing and Planning Act 2016.
Tenants and former tenants can apply to the First-tier Tribunal for a rent repayment order where the landlord has committed one of the relevant offences during the tenancy. Local authorities can also apply for rent repayment orders on behalf of tenants or in their own right.
The maximum award is 12 months of rent. The tribunal has discretion in determining the amount and will take into account the seriousness of the offence, the conduct of the landlord, whether the landlord has been convicted of the offence, and the financial circumstances of the landlord. Where the landlord has been convicted, the tribunal must make an order for the full 12 months unless exceptional circumstances apply.
The most effective defence is to show that no offence was committed. Where the application relates to an unlicensed HMO, demonstrating that the property did not meet the statutory definition of an HMO or that a licence application was pending may defeat the claim. A reasonable excuse defence is available for some offences. The tribunal will also reduce the amount of any order where mitigating circumstances are established.
Rent repayment orders can be made against landlords who have committed specified offences including operating an unlicensed HMO and illegal eviction. Tenants can apply for up to 12 months of rent. The tribunal has discretion over the amount. Landlords facing a rent repayment order application should take specialist legal advice immediately and prepare a defence based on the specific grounds of the application.
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