The Litigation Risk Landlords Are Still Underestimating: Mastering Rent Repayment Orders
Author: George Daniel, Housing & Property Law Contributor at Lawyer Monthly
Jurisdiction: England & Wales
Imagine Losing a Year’s Rent — Without Ever Going to Court
Imagine being ordered to repay a full year’s rent—without ever facing a criminal conviction.
That’s the growing risk for UK landlords under Rent Repayment Orders (RROs), one of the fastest-rising enforcement mechanisms in housing law. Once a little-known tenant remedy, RROs now blend the criminal standard of proof with civil financial recovery. The result? Even minor administrative breaches—like an overlooked HMO licence—can trigger serious litigation.
As 2025 unfolds, property lawyers warn that landlords must treat RRO exposure as a compliance and litigation priority, not a technical afterthought.
What Are Rent Repayment Orders and Why They Matter
Under the Housing and Planning Act 2016, Part 2, tenants or local authorities can recover up to 12 months of rent, housing benefit, or Universal Credit if a landlord has committed a relevant housing offence.
These include:
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Operating an unlicensed HMO – Housing Act 2004, s.72
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Managing an unlicensed rental property – s.95 Housing Act 2004
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Illegal eviction or harassment – s.1 Protection from Eviction Act 1977
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Using or threatening violence for entry – s.6 Criminal Law Act 1977
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Breaching a banning order – s.21 Housing and Planning Act 2016
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Ignoring improvement or prohibition notices – ss.30–32 Housing Act 2004
Applications go before the First-tier Tribunal (Property Chamber), with appeals to the Upper Tribunal (Lands Chamber).
Criminal Proof in a Civil Forum
RROs sit in a curious middle ground: they’re civil proceedings decided to the criminal standard of proof.
In Vadamalayan v Stewart [2020] UKUT 0183 (LC), the Upper Tribunal held that judges must apply the criminal test—being “sure” of the offence—not simply refer to it.
This is a critical distinction: unlike most civil cases decided on the balance of probabilities, RROs demand proof “beyond reasonable doubt.”
Brooke Lyne (Barrister, Landmark Chambers): “Rent Repayment Orders are no longer a niche remedy — they are a strategic tool in housing enforcement and one that landlords must now treat with the same rigour as a prosecution.”
Who Can Face an RRO—and When Directors Are at Risk
Only the immediate landlord can be the subject of an RRO, but the rule isn’t absolute.
In Goldsbrough & Anor v CA Property Management Ltd [2019] UKUT 311 (LC), the Tribunal found liability where the respondent received rent and exercised control, even if not named on the tenancy agreement.
While company directors can’t personally be subject to an RRO, they may still face criminal prosecution for the underlying offence—carrying potential disqualification under the Company Directors Disqualification Act 1986.
How Tribunals Calculate Awards
The Tribunal can order up to 12 months of rent to be repaid, but discretion is broad.
Judges weigh:
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The seriousness of the offence
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The landlord’s financial circumstances
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Conduct of both parties
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Whether a conviction or civil penalty already exists
In Williams v Parmar [2021] UKUT 244 (LC), proportionality was key—administrative oversights attracted partial awards, deliberate exploitation full recovery.
Case Spotlight: In Rakusen v Jepsen [2023] UKSC 9, the Supreme Court confirmed that only the immediate landlord can be subject to an RRO but cautioned that sham or rent-to-rent arrangements may still incur joint liability.
These rulings signal a culture shift: tribunals now scrutinize both intent and profit motive, rewarding good-faith compliance but penalizing concealment.
Local Authorities’ Expanding Enforcement Role
Local councils must consider applying for an RRO when a landlord is convicted of a relevant offence (Housing and Planning Act 2016, s.41).
Yet enforcement remains uneven. The NRLA Enforcement Survey 2024 found that only 38 % of English councils had exercised their RRO powers in the prior two years, often due to budget constraints.
Where they act, authorities must issue a Notice of Intended Proceedings within 12 months of the offence and give at least 28 days for a landlord response before applying to the Tribunal.
Successful actions can recover housing benefit or Universal Credit paid during the offence period.
For official guidance, see the UK Government’s RRO Guide.
Defending and Preventing RRO Claims
Landlords served with RRO notices should:
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Seek immediate legal representation experienced in Tribunal litigation.
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Provide compliance evidence early—licences, certificates, correspondence.
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Highlight mitigating factors, such as illness or administrative error (see Parker v Waller [2022]).
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Consider settlement or mediation to reduce potential exposure.
Defendants who show documented good faith often see awards reduced by 40–60 % (Property Bar Association Report 2025).
Compliance Strategy for 2025
To stay ahead of enforcement:
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Conduct annual licensing audits.
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Keep transparent rent and tenancy records.
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Train staff on Housing Act 2004 compliance.
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Respond promptly to all improvement notices.
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Review rent-to-rent structures for liability gaps.
“Landlords who invest in compliance infrastructure,” says Cole, “avoid both litigation stress and reputational damage.”
FAQ – Rent Repayment Orders
What is a Rent Repayment Order (RRO)?
An RRO allows tenants or councils to reclaim up to 12 months’ rent where a landlord has committed a housing offence.
Can it be issued without conviction?
Yes. The First-tier Tribunal can order repayment if satisfied beyond reasonable doubt that the offence occurred.
How long do councils have to act?
Within 12 months of the last day of the offence, after serving a Notice of Intended Proceedings.
What’s the appeal route?
Appeals go to the Upper Tribunal (Lands Chamber) within 28 days of the decision.
Key Takeaway for Practitioners
Rent Repayment Orders are reshaping landlord-tenant law—merging compliance and criminality.
For landlords, ignorance of licensing or enforcement procedure can mean catastrophic loss.
For lawyers, mastering RRO defences and procedural nuance is now essential professional literacy.
In 2025, the practitioners who understand this regime will set the precedents others must follow.
