Karol Hart, a member of the HMO team at Freemans Solicitors, was instructed to represent Rimal Properties Limited in this significant case, where he successfully secured the discharge of an application for a Rent Repayment Order. Karol presented two legal arguments before the Upper Tribunal (Lands Chamber) regarding the time limit for submitting a Rent Repayment Order application. These two issues concerning Rent Repayment Orders overturned a previous decision Robinson v JKR Properties Ltd (LON/00AE/HMF/2020/0199, referencing Dodds v Walker [1981] 1 WLR 1027) made by the First Tier Tribunal (property Chamber). The two questions before the Upper Tribunal were:
- What is the time limit for submitting a Rent Repayment Order Application under S41(2)(b) Housing Act 2004, when considering the meaning of the words “the offence was committed in the period of 12 months ending with the day on which the application is made”; and
- When a licence application for a House of Multiple Occupation (HMO) is submitted to a local authority, on what date can a landlord be entitled to a defence under S72(4) of the Housing Act 2004
In November 2023, the owner of a property—a limited company—approached Karol after receiving a Rent Repayment Order Application for twelve months’ rent from three tenants who had resided in a flat within the Auckland Borough of Westminster. The Rent Repayment Order alleged that an offence had been committed under Section 72(1) of the Housing Act 2004, asserting that the property constituted a House of Multiple Occupation (HMO), and that the landlord had failed to licence it as required by Westminster’s Additional Licensing Scheme. Karol determined that the application was out of time, as it had been submitted on 4th May 2023, while an HMO licence application had been submitted on 4th May 2022. He, therefore, opposed the Rent Repayment Order.
In response to the first of the above questions, the First Tier Tribunal (Property Chamber) found that fractions of a day should not be calculated and that a Rent Repayment Order application would only be considered in time if it were submitted within the same 12-month period as the last date of any offence (i.e., if the Rent Repayment Order application was lodged on 4 May 2023, then the offence must have been committed up to 5 May 2022). As for the second question, the FTT found that if a licence application were submitted at any time on 4 May 2023, the last day any offence was committed would be 3 May 2022. The FTT determined that it had no jurisdiction to issue a Rent Repayment Order in this case, as the application was submitted late.
The case was subsequently appealed by the Applicants, represented by Kings Counsel. The Upper Tribunal (Land Chamber) determined that the FTT had correctly analysed the case. Therefore, a Rent Repayment Order Application made on 4th May 2023 would require that an offence was committed on or after 5th May 2022. Furthermore, if a landlord submits a licence application on 4th May 2022, the last day on which they would be committing an offence would be 3rd May 2022.
Rent Repayment Orders can be made where the following offences can be proved
- Control/Manage an HMO contrary to Section 72(1) of the Housing Act 2004;
- Control/Manage an Unlicensed House contrary to Section 95(1) of the Housing Act 2004;
- Failure to comply with an improvement notice contrary to Section 30(1) of the Housing Act 2004;
- Failure to comply with a Prohibition Order contrary to Section 32(1) of the Housing Act 2004;
- Breach of a Banning Order contrary to Section 21 of the Housing and Planning Act 2016;
- Using violence for securing entry contrary to Section 6(1) of the Criminal Law Act 1977; and
- Eviction or harassment of occupiers contrary to Sections 1(2), (3) or (3A) of the Protection from Eviction Act 1977.
This case highlights the necessity of engaging experienced representatives in these types of cases at the earliest opportunity.
Expert advice is the best way to find out whether an action you have taken plan to take might amount to an offence, and what the consequences of that might be. Freemans solicitors are a leading provider of Rent Repayment Order and HMO advice and our experienced team will be happy to help with your enquiry. We can advise on whether a property counts as a converted block of flats HMO and what steps you might be able to take to change this.
Contact Michael Field, Karol Hart or Julian Hunt in our crime Team on 020 7935 3522 or [email protected] or in an emergency please call our 24/7 number 07973 259382 and let us help. We can advise on investigations, diversion from prosecution, prosecutions of HMO Offences and ancillary matters such a Rent Repayment Orders.
Whatever your personal circumstances the above is only a guide, and we would advise you to contact us to obtain definitive advice as you will appreciate that each person’s circumstances are unique to them.
