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Question Title: Penalties
| Question: 430 |
| What are the penalties for operating without a licence?
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| Answer: |
Failure to apply for a licence is a criminal offence and can result in a fine of up to £20,000. Further, in certain cases, rent from housing benefit or paid by tenants themselves can be reclaimed if a landlord is found to be operating a licensable HMO without a licence. If a landlord has been convicted of the offence or the local housing authority is satisfied that the offence has been committed even though the landlord has not been prosecuted, a local housing authority can reclaim any benefits paid when the landlord was operating without a licence by applying for a Rent Repayment Order. Similarly, tenants, including former tenants, are also allowed to make an application for a Rent Repayment Order where the landlord has been convicted of the offence or where a Rent Repayment Order has already been granted to a local housing authority on the same property.
These orders are constrained by the operation of the Residential Property Tribunal but may well cause concern for landlords.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
July 2005 p14 |
letting-update-journal.html
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Letting Handbook |
Chapter 16 |
letting-handbook-and-factsheets.html
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Letting Factsheet No 40 |
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factsheet-40
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For more information, discuss on the Forum
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