What happens if you rent out an unlicensed HMO?
By Patrick Roper · Last reviewed 2026-06-30
Renting out an HMO that needs a licence without one is a criminal offence in England. A council can impose a civil penalty as an alternative to prosecution, tenants or the council can apply for a Rent Repayment Order of up to 24 months of rent, and while the property is unlicensed the landlord's ability to regain possession is restricted.
- Status
- A criminal offence · source: Housing Act 2004
- Civil penalty
- Up to a statutory maximum, as an alternative to prosecution · source: Renters' Rights Act 2025
- Rent Repayment Order
- Up to 24 months of rent repaid to tenants or the council · source: Housing and Planning Act 2016
- Possession
- Regaining possession is restricted while unlicensed · source: Housing Act 2004 s.75
If a property needs an HMO licence and is let without one, the landlord is committing a criminal offence under the Housing Act 2004. The offence applies whether the failure is deliberate or an oversight, which is why checking the right scheme matters before tenants move in.
Rather than prosecute, a council can impose a civil penalty as an alternative. The amount reflects the seriousness and the landlord history, up to a statutory maximum. Our penalties page sets out the current figure and how councils decide it.
On top of any penalty, tenants or the council can apply for a Rent Repayment Order. This can require the landlord to repay up to 24 months of rent, including where that rent was paid through housing benefit or universal credit. For a fully let HMO that can be a substantial sum.
It also makes regaining possession harder. While the property remains unlicensed, the landlord's ability to recover possession is restricted, so removing a problem tenant is much harder. The fix in every case is the same: get the licence in place. If you are unsure whether your property needs one, check your council first.
Frequently asked questions
Is renting an unlicensed HMO a criminal offence?
Yes. Letting a property that requires an HMO licence without one is a criminal offence under the Housing Act 2004. A council can prosecute or impose a civil penalty instead.
How much rent can be reclaimed under a Rent Repayment Order?
Up to 24 months of rent, repaid to the tenants or, where housing benefit or universal credit was paid, to the council. The exact amount is decided by a tribunal.
Can I evict tenants from an unlicensed HMO?
While the property is unlicensed, your ability to regain possession is restricted. Getting the licence in place removes that block.