Rent Repayment Orders: what landlords need to know

What is a Rent Repayment Order?

A Rent Repayment Order (RRO) is a legal order made by the First-tier Tribunal (Property Chamber) requiring a landlord to repay rent to a tenant or local authority. RROs were introduced by the Housing Act 2004 and have been significantly strengthened by the Renters' Rights Act 2025.

The purpose of RROs is to provide a financial deterrent against landlords who commit housing offences. They are deliberately designed to hit landlords in the pocket, and the recent changes have made them much more powerful.

Who can apply for an RRO?

Two categories of applicant can apply:

• Tenants (or former tenants) who paid rent during the period when the offence was being committed
• Local housing authorities (councils) who were paying housing benefit or the housing element of Universal Credit towards the rent

A tenant does not need the local authority's permission to apply, and vice versa. They can both apply in respect of the same offence.

Which offences trigger an RRO?

The list of qualifying offences has been expanded by the Renters' Rights Act 2025. The current list includes:

Housing Act 2004 offences

• Operating an unlicensed HMO (section 72) - letting an HMO that requires a licence without having one
• Operating an unlicensed property under selective licensing (section 95) - letting a property in an area that requires a selective licence without having one
• Breach of an improvement notice (section 30) - failing to comply with a notice requiring improvements to a property
• Breach of a prohibition order (section 32) - using a property in breach of a prohibition order

Protection from Eviction Act 1977 offences

• Illegal eviction (section 1) - unlawfully depriving a tenant of their home
• Harassment (section 1) - doing acts likely to interfere with the peace or comfort of the tenant with intent to cause them to leave

Renters' Rights Act 2025 offences (new)

• Failure to register on the PRS Database - when mandatory registration is in force
• Misuse of possession grounds - using Ground 1 or Ground 1A dishonestly (e.g., claiming you want to sell but then re-letting)

Key changes under the Renters' Rights Act 2025

The Renters' Rights Act 2025 made four major changes to RROs that every landlord must understand:

1. Period doubled to 24 months

Previously, the maximum period covered by an RRO was 12 months. The Renters' Rights Act 2025 doubled this to 24 months. This means a successful applicant can now reclaim up to two full years of rent.

For a property renting at £1,200 per month, that is up to £28,800 in a single RRO.

2. Application window extended to 24 months

The time limit for making an RRO application has also been extended to 24 months after the offence. Previously it was 12 months. This gives tenants and local authorities significantly more time to bring a claim.

3. Maximum award is now mandatory

This is the most significant change. Under the old rules, the tribunal had broad discretion to decide how much rent to order repaid. They could consider factors like the landlord's financial circumstances, the seriousness of the offence, and whether the tenant had behaved unreasonably.

Under the new rules, the tribunal must award the maximum amount (the full rent paid during the relevant period) unless there are exceptional circumstances. The burden is on the landlord to demonstrate exceptional circumstances, not on the tenant to justify the full amount.

4. Rent must be repaid even if tenant was in arrears

Another important change: the tribunal must order the full rent repayment even if the tenant was in rent arrears during the period in question. Under the old rules, some tribunals reduced the award to account for unpaid rent. This is no longer permitted.

How the RRO process works

Step 1: Application to the tribunal

The tenant (or local authority) applies to the First-tier Tribunal using the appropriate form. They must specify the offence, the period during which the offence was committed, and the amount of rent paid.

Step 2: Evidence gathering

Both parties are given the opportunity to submit evidence. The tenant must prove:

• That an offence was being committed (on the balance of probabilities)
• That they paid rent during the period of the offence
• The amount of rent paid

The landlord can submit evidence of exceptional circumstances if they want the tribunal to reduce the award.

Step 3: Hearing

The tribunal holds a hearing (which can be in person, by video, or on paper). Both parties can present their case.

Step 4: Decision

The tribunal makes its decision. If it finds that an offence was committed and rent was paid, it must order repayment of the maximum amount unless exceptional circumstances apply.

Step 5: Enforcement

If the landlord does not pay, the tenant can enforce the tribunal's order through the county court, in the same way as any other debt.

What counts as exceptional circumstances?

The Act does not define "exceptional circumstances" and case law is still developing. However, the bar is deliberately set high. Examples that might qualify include:

• The landlord had a genuine and reasonable belief that no licence was required (e.g., conflicting advice from the local authority)
• The offence was technical and immediately remedied upon discovery
• The landlord is an individual facing genuine financial hardship that would make the full award disproportionate

Examples that will not qualify:

• "I didn't know about the licensing requirement" (ignorance of the law is not a defence)
• "The property was in good condition" (the offence is the absence of a licence, not the condition)
• "The tenant was happy with the property" (irrelevant to the offence)

The financial impact

The potential financial impact of an RRO is now enormous. Consider this example:

And that is for a single property. If a landlord has multiple unlicensed properties, the penalties multiply.

How to protect yourself

The best way to avoid an RRO is straightforward: do not commit the offences that trigger them. Specifically:

1. Check if your property needs an HMO licence and get one if it does
2. Check if your area has selective licensing and get a licence if required
3. Comply with improvement notices promptly and in full
4. Never illegally evict a tenant. Always use the proper legal process.
5. Register on the PRS Database when mandatory registration begins
6. Do not misuse possession grounds. If you use Ground 1 or 1A, follow through on your stated intention.

Common mistakes

• Assuming RROs are rare. Local authorities are increasingly using RROs as an enforcement tool, and tenant awareness is growing.
• Not checking licensing requirements when buying a property. Always check before purchase whether the property needs a licence.
• Thinking good property conditions protect you. An RRO is triggered by the offence, not by the condition of the property.
• Ignoring improvement notices. An improvement notice gives you a chance to fix the problem. Ignoring it creates an RRO-eligible offence.
• Underestimating the financial exposure. With the 24-month period and mandatory maximum award, the amounts are now very large.

How LetShield helps

LetShield's compliance tracking helps prevent the offences that trigger Rent Repayment Orders. The dashboard monitors your HMO licensing status, tracks improvement notice deadlines, flags PRS Database registration requirements, and maintains an audit trail of your possession ground usage. By keeping your compliance up to date, you eliminate the risk of the offences that make you vulnerable to an RRO.