What happens if I let an unlicensed HMO?

It is a criminal offence, and separately the tenants can apply to reclaim up to twelve months’ rent.

The council can prosecute, or issue a civil penalty of up to £30,000 per offence without going to court. A rent repayment order is a separate application made by the tenant or the council to the First-tier Tribunal.

You also cannot rely on the property being unlicensed by accident. Not knowing a scheme existed is not a defence, which is why the check comes before the letting.