HMO - RRB Will Clamp Down on Unlicensed Properties

If you’re letting a House in Multiple Occupation (HMO) without the right licence, the upcoming Renters’ Rights Bill (RRB) should set alarm bells ringing. The Bill, expected to become law later this year, is sharpening enforcement powers and penalties to tackle unlicensed properties, particularly HMOs, in a way we haven’t seen before.

1. Why HMOs are in the spotlight

HMO properties rented by three or more unrelated tenants who share facilities must meet higher safety, space, and management standards than standard rentals. Licensing is already a legal requirement in most cases, but some landlords take their chances. The RRB aims to make that gamble far riskier.

2. Stricter licensing enforcement

• National landlord database: Every landlord will have to register. Letting without registration will be an offence in itself, making it harder for unlicensed HMOs to fly under the radar.
• Local authority powers: Councils will get stronger investigation and enforcement tools, including data sharing across departments to track down non-compliant properties.
• Public transparency: Tenants will be able to check if their landlord and property are licensed before they move in.

3. Harsher penalties for non-compliance

The Bill significantly raises the stakes:

• Civil penalties up to £7,000 for first offences, rising to £40,000 for repeat breaches.
• Potential rent repayment orders, tenants could reclaim up to 12 months’ rent if you operate without the correct licence.
  
• For serious or persistent offenders, the possibility of banning orders from letting altogether.

4. Tighter safety and quality standards

Under the RRB, the Decent Homes Standard will be extended to the private rented sector for the first time. This will sit alongside existing HMO safety rules, meaning:

• Stricter requirements for fire doors, escape routes, and smoke/heat alarms.
• Robust maintenance schedules for shared facilities.
• Mandatory timelines for addressing hazards, mirroring Awaab’s Law on damp and mould.

5. What this means for landlords and tenants

For landlords: There’s no longer a “low risk” in delaying your HMO licence application. The RRB creates a paper trail that’s visible to both tenants and enforcement officers. Being proactive with compliance will protect your income and your reputation.

For tenants: These changes make it easier to verify if your home meets safety and licensing requirements. It should also give you stronger grounds to challenge poor conditions or illegal lets.

The RRB isn’t just tidying up tenancy rules it’s aiming for a rental market where unlicensed, unsafe HMOs have nowhere to hide. For compliant landlords, it levels the playing field. For tenants, it raises the quality bar.

Get licensed now and stay ahead of the RRB crackdown