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Rent repayment order fines to double under Labour

rent repayment orders

Rogue landlords face being forced to pay back up to 24 months’ rent as part of a shake-up of Rent Repayment Orders under the new Renters’ Rights Bill.

The new maximum penalty – up from the current 12 months – will also impact superior landlords for the first time, while repeat offenders who are convicted or receive a financial penalty for licensing offences will have to repay the maximum amount of rent.  

As well as the current list, tenants will be able to seek rent repayment orders for – among new offences - if the landlord persistently fails to join the ombudsman service and if a privately rented property fails to meet Decent Home Standard requirements.  

Landlord couple Tarsam and Permjit Ram are the latest to be handed a sizeable £8,415 RRO after a First Tier Property Tribunal heard how they had failed to get a mandatory licence for their HMO in Osborn Street, London (pictured) above a Mexican restaurant.

Although the landlords claimed the studio loft containing a fifth tenant was self-contained so didn’t need a licence, and that they already had a selective licence, a judge ruled that this only allowed a maximum of four tenants.

Ignorance

The judge said: “No matter how genuine a person’s ignorance of the need to obtain a licence is, unless their failure was reasonable in all the circumstances, their ignorance cannot provide a complete defence.”

He awarded the tenant 90% of the rent claimed after hearing how a fire had broken out in flat 28a of 28 Osborn Street where she lost 90% of her belongings. London Fire Brigade confirmed the fire was caused by an electric bike charger in flat 28a and listed many serious fire safety breaches – including only one working smoke detector - which meant that it was unsafe for the property to be occupied.

There were also mice and rats in the kitchen during her tenancy, along with mould and an intermittent water supply. Although she received her deposit, it had not been protected.

Read the judgement in full.

Renters' Rights Bill 'biggest changes for landlords in 30 years'
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