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17/12/25 3:30 pm
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Landlords who intentionally or unwittingly rent out unlicensed properties to tenants in receipt of benefits are to face a new and more draconian Rent Repayment Orders (RRO) scheme.
Launched over the weekend, it will enable councils to apply for RROs on behalf of tenants supported by local authorities in order to recoup money for the ‘public purse’.
A three-council pilot has been running for several months including within the London Borough of Camden and this will now be expanded to include 38 other areas including in many big cities such as Leeds, Nottingham, Middlesborough, Plymouth, Bristol, Oxford, Peterborough, Portsmouth and Coventry.
The scheme, which has been launched by the Department of Work and Pensions (DWP), works with local councils to identify ‘benefits tenants’ living in unlicensed properties, meaning non-compliant landlords will face RROs both from private tenants and local councils.
While RROs are currently applied for via a Tribunal by tenants who believe their landlord did not licence their home as requested under local HMO or selective licensing rules, the new scheme enables councils to also apply for an RRO to recoup housing benefits paid to landlords.
But the criteria has also been expanded. As well as unlicensed properties RROs will also be applicable if a landlord has ignored a council Improvement Order or if failed to fix mould and damp problems.
Tenants can currently claim back up to 12 months’ rent via a RRO but when the Renters’ Rights Act is implemented on May 1st, this will increase to 24 months regardless of who is making the RRO application.
Minister for Social Security and Disability Sir Stephen Timms (main image), says: “Thanks to this pilot, private renters in receipt of housing support will have stronger protections against landlords who fail to meet public standards.
“No one should live in unsafe or unsuitable housing. We are giving local authorities the tools they need to deter bad housing practice and ensuring better value for money by upholding safe standards.
“Enforcing better standards will drive up living standards through incentivising better practice in the future, as well as protecting taxpayer cash.”
The key feature of the new clampdown has been data sharing between the DWP and local councils, enabling a council to identify tenants in receipt of housing support and then check their address against the council’s HMO and selective licensing registers.
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