unlicensed property
📖 What is unlicensed property? Meaning and definition
In the UK, certain properties are required by law to be licensed by the local authority. This requirement often applies to properties located in areas designated for additional or selective licensing by the council, such as the London Borough of Camden in one of the cases. The purpose of licensing schemes is typically to ensure properties meet certain standards and are managed appropriately.
A property becomes 'unlicensed' when it falls under one of these licensing schemes but the landlord fails to obtain the necessary licence. This failure is considered a criminal offence under specific sections of the Housing Act 2004, such as section 95(1) for the control or management of an unlicensed house, or section 72(1) for an unlicensed House in Multiple Occupation (HMO).
For tenants, the significance of an unlicensed property is that they may be able to apply for a Rent Repayment Order (RRO) against their landlord. This order, made under the Housing and Planning Act 2016, allows tenants to reclaim rent paid during the period the property was unlicensed, typically up to 12 months. The First-tier Tribunal (Property Chamber) is the body that hears these applications and determines the amount of rent to be repaid.
📋 Requirements
- The property must be situated in an area designated for additional or selective licensing by the local council.
- The landlord must have failed to obtain a valid licence for the property.
- The landlord's failure to obtain a licence constitutes a criminal offence under the Housing Act 2004.
- The tenant must have paid rent during the period the property was unlicensed.
📝 Procedure
- A tenant applies to the First-tier Tribunal (Property Chamber) for a Rent Repayment Order.
- The application states that the landlord committed an offence under the Housing Act 2004 by managing an unlicensed property.
- The Tribunal considers evidence from both the tenant and the landlord, which may include statements and documents.
- The Tribunal determines if the property was indeed unlicensed during the claimed period and if the landlord committed the offence.
- If an order is made, the Tribunal calculates the amount of rent to be repaid, relating to rent paid during the period the landlord was committing the offence, up to 12 months.
💡 Examples
- A landlord in Camden failed to licence their Victorian terraced house, which was in an additional licensing area, leading to tenants successfully claiming back rent.
- Tenants applied for a rent repayment order after discovering their landlord had not obtained a selective licence for their property, which was required from a specific date.
- A landlord was found to be managing an unlicensed house, resulting in a tribunal ordering them to repay rent to the tenants for the period the property lacked the necessary licence.
- Despite administrative errors, a tenant was still able to secure a reduced rent repayment order because the landlord had controlled an unlicensed house.
📚 Legal basis
- Housing and Planning Act 2016
- Housing Act 2004
- Protection from Eviction Act 1977
❓ Frequently asked questions
What does 'unlicensed property' mean for me as a tenant?
If you are renting an 'unlicensed property', it means your landlord has failed to obtain a licence that was legally required for the property. This failure is a criminal offence, and you may be able to apply for a Rent Repayment Order to get back some of the rent you paid.
How do I know if my property should be licensed?
Local councils designate areas for additional or selective licensing. You can usually check your local council's website to see if your property's address falls within a designated licensing area and if your landlord has obtained the required licence.
What is a Rent Repayment Order?
A Rent Repayment Order is a legal order from the First-tier Tribunal (Property Chamber) that requires a landlord to repay rent to a tenant. It can be made if the landlord has committed certain offences, including managing an unlicensed property.
How much rent can I get back if my property is unlicensed?
The amount of rent you can get back is determined by the Tribunal and relates to rent paid during the period the landlord was committing the offence, up to a maximum of 12 months. The specific amount can vary depending on the circumstances of the case.
Is my landlord committing a crime if their property is unlicensed?
Yes, under the Housing Act 2004, a landlord who fails to obtain a valid licence for a property that requires one is committing a criminal offence. This can lead to penalties for the landlord and the possibility of a Rent Repayment Order for tenants.
Do I need a solicitor to apply for a Rent Repayment Order?
While self-represented litigants can apply, the process can be complex. You may find it beneficial to seek advice from a qualified solicitor or housing expert to understand your rights and navigate the application process effectively.