HMO licence fines in London: what you risk without one
Councils in London actively look for unlicensed properties, and the penalties went up in 2026 under the Renters' Rights Act 2025. Here's what's at stake.
Updated 8 November 2026
Civil penalties of up to £40,000
Since 1 May 2026, councils can issue a civil penalty of up to £40,000 for licensing offences – up from £30,000. That covers operating an HMO or other property without a licence it needs, and breaking licence conditions. A civil penalty is an alternative to prosecution, and councils can issue one for each offence.
Rent repayment orders of up to two years' rent
Tenants – and the council, where housing benefit or Universal Credit was paid – can apply for a rent repayment order. Under the Renters' Rights Act this can now be up to 24 months' rent, and it can reach landlords higher up a rent-to-rent chain.
Check your property in a minute
Our free licence checker tells you which licence your property needs, borough by borough. If you need one, we prepare the whole application at a fixed price.
Prosecution and unlimited fines
Instead of a civil penalty, a council can prosecute. Operating an unlicensed property can lead to a criminal conviction and an unlimited fine. A conviction can also affect whether you're considered a 'fit and proper person' to hold a licence in future.
Problems getting your property back
Section 21 'no-fault' evictions ended on 1 May 2026. Landlords of unlicensed properties also can't use the new no-fault possession grounds under the Renters' Rights Act, so an unlicensed property can leave you stuck.
Getting licensed is the cheapest option
Council fees typically run from a few hundred pounds to around £1,700, compared with penalties in the tens of thousands. If you're not sure whether your property needs a licence, check it today – and if it does, we'll prepare the application for you at a fixed price.
Questions landlords ask
What is the fine for an unlicensed HMO?
Councils can issue a civil penalty of up to £40,000 per offence (since 1 May 2026), or prosecute, which can mean an unlimited fine. Tenants can also claim back up to 24 months' rent.
Can tenants claim rent back if my HMO isn't licensed?
Yes. Tenants can apply for a rent repayment order, which under the Renters' Rights Act can be up to 24 months' rent.
What if I apply now, after the scheme started?
Apply as soon as you know you need a licence. Once a valid application has been made and is still being considered, the law treats that as a defence to the offence of running an unlicensed property – though councils can still look at the period before you applied.
Check your property in a minute
Our free licence checker tells you which licence your property needs, borough by borough. If you need one, we prepare the whole application at a fixed price.
This guide is general information, not legal advice. Councils change their schemes and fees, so we confirm the position for your address before we accept your job.