Question Title: Penalties
| Question: 397 | ||
| What are the penalties for operating without a licence? | ||
| 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: | Pages: | Hyperlinks: |
| Letting Handbook | Chapter 16 | product-info/products/letting-handbook-and-factsheets.html |
| Letting Update Journal | July 2005 p14 |
product-info/products/letting-update-journal.html |
| Letting Factsheet No 40 | letting-factsheets/factsheets/factsheet-40-houses-in-multiple-occupation-and-the-housing-act-2004.html | |
Legal Check By: , Date: 1970
Text Check By: Jane, Date: 1970
Review Date: 1970
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