Penalties

The government has introduced extensive penalties for not complying with licensing. If a landlord operates a property without a licence (when one is required) the following can apply:

• On prosecution a fine up to £20,000
• Loss of rent
• Management orders

Loss of rent

When a property is operated without a licence, Housing Benefit may apply to the Residential Property Tribunal for payment to be returned equivalent to the value of 12 months rent (maximum). In addition tenants may reclaim any top-ups or rent paid direct.

Management orders

If it is not possible to issue a licence for a property, then the council must issue a management order to take over the management of the property.

There are also other penalties associated with licensing, these include:

• A fine up to £20,000 for allowing the property to be occupied by more people than stated in the licence
• A fine up to £5,000 for breaking conditions of the licence
• A fine up to £5,000 for knowing or carelessly giving false or misleading information