Rent Repayment Orders

Leopoldine Mineo

Guidance for Rent Repayment Orders (RROs) for Landlords in the UK

Rent Repayment Orders (RROs) are legal orders requiring a landlord who has committed a relevant offence to repay rent, housing benefit or universal credit. This guidance is intended to serve as a guide so landlords can understand when RROs apply, what landlords need to know to avoid them and how to ensure they comply with the regulations.

What is a Rent Repayment Order?

RROs are mechanisms between landlords and tenants that allow tenants to claim rent back from their landlord if the latter has breached their agreement. They do not require the landlord to actually be convicted but the tribunal must be satisfied by the criminal standard of proof, which is “beyond a reasonable doubt”, that a relevant offence was committed. The Housing and Planning Act 2016 (HPA 2016) allows tenants to claim a sum up to 12 months of rent.

When are Rent Repayment Orders issued?

RROs apply to certain housing related offences The offences are set out in section 40(3) of the HPA 2016 as follows:

	Offence	Legislation
1	Using or threatening violence for securing entry into premises	Section 6 of the Criminal Law Act 1977
2	Illegal eviction or harassment	Section 1 Protection from Eviction Act 1977
3	Failure to comply with improvement notice issued by a local authority, for example for health and safety reasons	Section 30 of the Housing Act 2004
4	Failure to comply with prohibition orders, which are issued where a property is unfit for habitation	Section 32 of the Housing Act 2004
5	Breach of banning orders	Section 21 of the HPA 2016
6	Having control of, or managing, an unlicensed property where the property or the area requires it	Section 95 of the Housing Act 2004
7	Having control of, or managing, an unlicensed HMO property	Section 72 of the Housing Act 2004

How do Rent Repayment Orders work?

RROs are issued by the First-Tier Tribunal, which is a legal body that deals with housing disputes in the United-Kingdom. The following steps will apply:

1. Application: the tenants or local authority make the application to the First-Tier Tribunal, providing all the evidence and supporting documents. Tenants usually apply independently whilst local authorities usually apply where the landlord has been prosecuted and fined for one of the relevant offences.

2. Hearing: it is similar to a court hearing but less formal. The case is heard by panel members, usually two or three of them. They will examine the evidence made available to them and the landlord will have the opportunity to respond to the allegations and present their evidence. A decision is not reached at the hearing itself, a written decision will be issued after the hearing.

3. Decision: The Tribunal has to order that the maximum amount of rent, which is 12 months, is repaid where the landlord has been convicted of the relevant offence, even where the tenants applied for less. If the landlord has not been convicted of a relevant offence, the Tribunal will assess the sum to be repaid in accordance with the circumstances, including conduct of the parties, financial circumstances of the landlord and past conviction. The order will depend on the severity of the offence. The landlord can appeal to the Upper Tribunal but must do so within 28 days of the decision.

4. Enforcement: The Tribunal will set the date by which the landlord must pay. If the landlord fails to pay pursuant to the terms of the RRO, the tenant or local authority can enforce the order by taking enforcement actions such as pursuing a court judgment through the County Court to reclaim the money as a civil debt. You will first need to register the Order with the County Court which will involve completing a form and the payment of a fee.

What it means for landlords

RROs can be significant financially, especially where the Tribunal orders 12 months rent to be repaid. It can also mean legal costs, loss of rental income that the landlord had collected, penalties or fines.

How to avoid RROs

The best way to avoid RROS is to understand the relevant legislation in place and comply with regulations:

1. Proper licencing: a landlord should always check if their property requires an HMO licence, a selective licence or any other form of licencing required by the local authority. These licences must be kept up to date and renewed when necessary.
2. Health and safety standards: landlords should regularly inspect their property to ensure it complied with the health and safety standards. This includes fire, electrical and gas safety. In addition, if tenants or the local authority raise concerns, the landlord should listen and attend to these issues.
3. Tenants’ rights: landlords should know tenants’ rights such as deposit protection, eviction procedures and security of tenure. They should also be mindful of not harassing or threatening their tenants or try to force them to move out.
4. Improvement notices: if an improvement notice or prohibition notice is issue by the local authority, a landlord should address it and comply as soon as possible, for example by conducting the necessary repairs or at least engaging with the local authority
5. Records: landlords should always keep records of their key documentation such as certificates or licences but also evidence of maintenance to the property and communications with tenants.

What to do if facing an RRO?

RROs are a serious concern for landlords who risk a substantial financial burden. Indeed, some local areas operate strict rental regulations that they must be aware of and comply with to minimise the risk of financial penalties. When facing an RRO, it is best to seek legal advice and representation from specialised solicitors such as at Osbornes Law. Our experts in property litigation can assist you in gathering evidence, negotiating with the tenant or local authority and explore repayment options.

To speak with one of our solicitors, contact us by:

• Filling in our online enquiry form; or
• Calling us on 020 7485 8811