Legislation associated with letting property – and in particular HMOs – is becoming increasingly burdensome. So, it is welcome news to hear that there is a possibility that HMO landlords whose property is of a high standard, but make genuine errors with regards to some rules and regulations, may be treated with leniency. In a recent example, the Upper Property Tribunal reduced one landlord’s rent repayment order by £8,000. Furthermore, landlords whose lettings agents make mistakes – or who are badly advised by their agent – could find that they are treated more leniently.
In the example above from 2021, the landlord initially told a First Tier Property Tribunal he was unaware he needed a license for his HMO in London, because he lived abroad and hadn’t been correctly advised by his managing agent. The tribunal dismissed his argument and applied a Rent Repayment Order for nearly £12,000.
However, the Upper Tribunal subsequently overturned this ruling and reduced the RRO to just £3,000. They ruled that, if a landlord has provided accommodation of a decent standard, despite failing to obtain a necessary license, the punishment appropriate to the offence ought to be reduced.
The rational for this reduction seems to be that the purpose of RROs is to dissuade rogue landlords offering substandard accommodation, willfully flouting the law. RROs are not meant to be punitive, particularly where genuine errors have been made rather than a deliberate attempt at law breaking.
However, despite this sensible and pragmatic approach, we would still advise all landlords to take their legal responsibilities seriously, get themselves educated and take a leadership position in their own business.
At Lifeboat Lettings we will always help and advise our landlords regarding licence responsibilities and assist with licence applications.
If you would like some help with your HMO licence, please email contact@lifeboatlettings.com with your query.
