Unlicensed HMO: your rights when the landlord has no licence

Your home may be a house in multiple occupation (HMO) that should be licensed but is not. That matters. An unlicensed HMO can entitle you to a Rent Repayment Order (RRO), worth up to 12 months' rent. And for older evictions still in the courts, it could invalidate a Section 21 notice served before abolition. This article explains how the licensing rules work and what you can do.

What is HMO licensing?

Many HMOs need a licence from the local council. There are two types:

Mandatory HMO licensing: required for any HMO where 5 or more people form 2 or more households, whatever the size of the building. (The old rule limiting this to buildings of 3 or more storeys was removed in October 2018.) This applies across England.

Additional licensing: many councils run additional licensing schemes covering smaller HMOs, for example those with 3 or 4 people. Check with your council whether additional licensing applies in your area.

An HMO that needs a licence but does not have one is being run illegally.

The biggest remedy now: a Rent Repayment Order (RRO)

The First-tier Tribunal can award a Rent Repayment Order where:

• The landlord has been convicted of running an unlicensed HMO, or
• The landlord has committed the offence, even without a conviction. The Tribunal can make an RRO on that basis alone.

An RRO can make the landlord repay up to 12 months' rent. That is serious money. Do you also owe rent arrears that are the subject of Ground 8 possession proceedings? An RRO can cancel out the arrears in practice, even though it does not directly reduce the debt owed.

What about eviction?

Section 21 is abolished. The Renters' Rights Act 2025 ended no-fault evictions. For new cases, the old rule barring Section 21 on an unlicensed HMO no longer comes into play. Landlords must now use Section 8 grounds.

Older Section 21 cases still in the courts: for notices served before abolition, the bar still matters. A landlord could not serve a valid Section 21 notice on a property that needed mandatory HMO licensing but had no licence (section 75 of the Housing Act 2004). Was an old notice served on an unlicensed HMO? It is invalid, and you can defend the possession case.

Section 8 evictions: unlicensed status is not an automatic defence to Section 8 proceedings. Those run on set grounds such as rent arrears. But if you have arrears and your HMO is unlicensed, an RRO may be available to you, as above.

How do I know if my HMO should be licensed?

Check:

• Whether your home has 5 or more people forming 2 or more households. If so, mandatory licensing applies.
• Whether your council runs an additional licensing scheme. Search the council's website or call them.

You can also ask your council's HMO licensing team directly whether your property needs a licence and whether it has one.

What if my landlord has applied for a licence but not received one yet?

A landlord may have a pending application or a "temporary exemption notice". There can be a partial grace period. The legal position depends on the facts. Get legal advice if your landlord says an application is pending.

What should I do?

1. Check your council's licensing register. Most councils publish their list of licensed HMOs. If your property should be on it and is not, it is unlicensed.
2. Get legal advice. A housing solicitor can advise on an RRO, and on any live possession proceedings.
3. Consider an RRO application. A housing solicitor or housing adviser can help you apply to the First-tier Tribunal.

When should I contact Support for Tenants?

If your home is in disrepair and your landlord is also pursuing eviction, we can help with the disrepair element. Call us.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Housing Act 2004 (HMO licensing) (legislation.gov.uk)
• Housing and Planning Act 2016 (rent repayment orders) (legislation.gov.uk)
• Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (legislation.gov.uk)