Rent Repayment Orders – A growing concern for uninformed landlords?

At Landlord Action, we have seen a noticeable increase in enquiries relating to Rent Repayment Orders (RROs) over the past six months. RROs are a way for tenants or local authorities to reclaim rent from landlords who have breached certain legal obligations, such as failing to license a property or protect a deposit, even when the tenancy has ended. With changes under the Renters Rights Bill on the horizon and growing awareness among tenants, this is fast becoming an area of increased risk. While it may not yet be dominating headlines, RROs are certainly something landlords, particularly the self-managing and less experienced, should be aware of.

NRLA members tend to be among the more informed and proactive in the sector, but with 2.7 million landlords in the UK and around 80% owning just one to three properties, there remains a significant portion of landlords who may not fully understand the extent of their legal obligations.

RROs are already being used as a way to enforce housing standards, primarily by local authorities. The process typically goes through the First-tier Tribunal, where each party is generally responsible for their own legal costs unless the tribunal determines that one side has acted unreasonably. While the process is not always straightforward, we expect the number of RRO claims to increase as tenant awareness of legal rights and landlord obligations continues to grow.

Although many will already know, it is worth taking a closer look at how Rent Repayment Orders actually work, especially given from our experience that many landlords only become aware of them when they are already facing a claim. Tenants or local authorities can currently apply to reclaim up to 12 months' rent if a landlord has committed certain offences. These include operating an unlicensed HMO, failing to protect a tenant's deposit, or not providing essential safety documentation. As our Head of Legal at Landlord Action, Paul Sowerbutts, put it: "It is not about whether a landlord intended to break the rules but rather about whether they did. In most cases, there is no defence if the property should have been licensed but was not. Our role then becomes one of mitigating the impact, not avoiding it altogether.”

The Renters Rights Bill proposes doubling the maximum amount of rent that can be reclaimed from 12 to 24 months of rent, with tenants having up to 24 months to make a claim. It also expands the list of offences that could trigger an RRO, including misuse of eviction grounds, non-compliance with landlord redress schemes or the private rented sector database, and even providing false or misleading information. The changes also propose allowing claims against superior landlords, which means rent-to-rent operators or company landlords would also be liable.

Although these changes are still under consultation, they signal a move towards more robust enforcement. We are seeing an increase in enquiries, particularly where landlords are based overseas or have inherited properties and are unaware of licensing rules. These cases are complex, and even when landlords want to do the right thing, they are often playing catch-up.

Self-managing landlords with limited legal understanding and no managing agent are most at risk. These landlords often lack the systems or knowledge to stay on top of ever-changing compliance demands and are sitting ducks for well-informed tenants.

We have dealt with cases where landlords were completely unaware they needed a licence. One case involved an individual living overseas, which added complexity, and another landlord who chose to settle early due to reputational concerns, even though they might have had grounds to contest.

The sector is undeniably shifting. Although there is not yet a surge in tenant-led, no-win, no-fee claims, the risk may grow as legal advice becomes more accessible and awareness increases. Compliance is becoming non-negotiable, and ignorance of the rules is not a defence. While professional and well-advised landlords will continue to operate successfully, the days of being a 'hobby' landlord, casually managing a property on the side without fully understanding the legal obligations, are rapidly coming to an end. Those naïve or unaware are going to find themselves at much greater risk of penalties following the numerous changes due to hit the sector.

We are not sounding the alarm bells…yet. However, the signs are there and landlords who ignore their responsibilities are likely to find themselves exposed. Those who educate themselves, stay compliant, and seek the right advice will continue to operate without issue.

Rent Repayment Orders are just one of several legal tools tenants and local authorities are using more frequently to hold landlords accountable. As regulatory scrutiny increases, landlords must take steps now to review their compliance, tighten their procedures, and seek guidance where needed. In a compliance-heavy future, preparation is essential to survival in the sector.