I Have Been Served a Rent Repayment Order Application

A Rent Repayment Order is the tenant trying to claw back up to 12 months of rent from you. You cannot ignore it. You have to defend it, limit the damage, or both.

"This guide provides general information about UK landlord tax obligations. It is not financial or legal advice. Tax treatment depends on your individual circumstances and may change. Consider consulting a qualified accountant or solicitor for advice specific to your situation."

1. What a Rent Repayment Order actually is

Law:

Under Chapter 4 of the Housing and Planning Act 2016, the First-tier Tribunal (FTT) can order you to repay rent to the tenant or local authority if it is satisfied, beyond reasonable doubt, that you committed one of the listed housing offences.

• The order can cover up to 12 months' rent (or housing benefit/UC) relating to the period during which the offence took place.

Who applies

• A tenant or local housing authority can apply to the FTT.
• They must usually apply within 12 months of the offence being committed or ceasing.

Maximum amounts

• For tenants: FTT can order up to 12 months of rent paid by the tenant under that tenancy, less any UC housing costs.
• For councils: up to 12 months of rent paid in HB/UC.

This is on top of fines, civil penalties or licence fees. It is not your only punishment.

2. What offences trigger an RRO

The full list is in section 40(3) HPA 2016 and related guidance:

Typical triggers

• Operating an unlicensed HMO - section 72 Housing Act 2004.
• Operating an unlicensed house in a selective/additional licensing area - section 95 Housing Act 2004.
• Failure to comply with an improvement notice - section 30 Housing Act 2004.
• Failure to comply with a prohibition order / emergency prohibition - section 32 Housing Act 2004.
• Illegal eviction or harassment of occupiers - section 1 Protection from Eviction Act 1977.
• Using or threatening violence to secure entry - section 6 Criminal Law Act 1977.
• Breach of a banning order - section 21 Housing and Planning Act 2016.
• Knowing or reckless misuse of a possession ground under the Renters' Rights regime - section 16J Housing Act 1988 (new).

The Tribunal can make an RRO even if you have not been prosecuted, as long as it finds the offence proved beyond reasonable doubt.

3. What to do immediately

Once you are served with an RRO application (Form RRO1 or equivalent):

• You usually have 14 days (check the notice) to respond to the Tribunal.
• Calendar the response deadline today.

Your first moves

Get legal advice now

• Find a solicitor or specialist who actually does RRO defence (HMO/licensing or housing law practitioners).
• Send them:
• The application and any witness statements.
• Your tenancy agreement, licence documents, council correspondence.

Do not contact the tenant directly about "dropping it"

• Anything that looks like pressure or retaliation can backfire badly in front of the Tribunal.

Preserve evidence

• Emails with the council.
• Licence applications and dates.
• Inspection records, notices served, diary notes.
• Any evidence showing you tried to comply or that the council's view is wrong.

Check legal expenses insurance

• Some landlord/lettings legal cover policies include RRO defence.

Your response will usually need to set out whether you admit or dispute the offence, and what you say about the amount.

4. How the Tribunal decides the amount

If the FTT finds the offence proven, it must then decide how much rent to order you to repay.

Statutory factors it must consider

The conduct of the landlord.

• How serious was the offence compared to others of the same type?
• How long did it go on?
• Did you ignore notices, harass tenants, or cooperate and fix issues?

The conduct of the tenant.

• Rent arrears, antisocial behaviour, refusal of access, etc.
• Serious negative conduct can justify a lower award.

The financial circumstances of the landlord.

• The Tribunal must consider your ability to pay, though this is not a free pass.

Whether you have been convicted of the offence.

• If you have been convicted, guidance says the Tribunal should normally start from the maximum 12 months and adjust only if there are strong reasons.

In practice, they often work from a percentage of the rent over the offence period (for example 50-80%) depending on seriousness, with reductions for tenant misconduct or genuine attempts to comply.

5. Defence options and damage limitation

You and your adviser should look at:

Did you actually commit the offence?

• Example: the property did not require a licence at the time or was exempt; you had a valid licence; the improvement notice was complied with or not lawfully served.
• If the Tribunal is not satisfied beyond reasonable doubt, no RRO should be made at all.

Reasonable excuse / due diligence

• For some licensing-type offences, showing you took all reasonable steps to comply (for example applying promptly, relying on professional advice, being misled by the council) can reduce culpability and the percentage of rent ordered, even if technically in breach.

Tenant conduct

• Persistent arrears, serious ASB, deliberate obstruction of works or inspections.
• Evidence of this can justify a significant reduction from the headline 12-month figure.

Financial hardship and proportionality

• If repaying 12 months would push you into insolvency or force a sale at a loss, your solicitor can argue for a smaller proportion and/or staged payment based on financial circumstances.

Procedural defects in the application

• Tenant applied outside the 12-month window.
• Offence period not properly pleaded.
• Claim includes rent from periods outside the offence window or from other tenancies.

Your realistic goals

• Best case: no RRO because the offence is not proved.
• Next best: reduce the period/percentage (for example 20-40% of 12 months rather than 100%).
• Worst case: full 12 months - which is why you should not go into this without specialist help.

6. What to do next

In the next 48 hours:

1. Send the papers to a housing/HMO/RRO specialist solicitor.
2. Notify your legal expenses insurer if you have one.
3. Start a timeline: when any alleged offence began and ended, licence applications, council contact, tenant behaviour.

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