Letting a licensable property without a licence is a criminal offence. The council may prosecute, or may impose a civil penalty instead, and the government's statutory guidance gives starting points of £12,000 for a selective licensing offence and £17,000 for an HMO licensing offence. A tribunal may also order repayment of rent already received, now up to two years' worth under the Renters' Rights Act 2025. And while the property is unlicensed you cannot obtain possession on the ordinary grounds.
Three separate consequences, not one
Landlords tend to think of this as a fine. It is three things, and the third is usually the most expensive.
| Consequence | Scale | Who imposes it |
|---|---|---|
| Prosecution or a civil penalty | Statutory guidance starting points of £12,000 for selective licensing and £17,000 for HMO licensing. A prosecution carries an unlimited fine | The council, which cannot both prosecute and impose a civil penalty for the same offence |
| Rent repayment order | Up to two years' rent, extended by the Renters' Rights Act 2025 | The First-tier Tribunal, on the application of the tenant or the council |
| No possession | Indefinite, until the position is regularised | The effect of the licensing regime itself |
A rent repayment order of two years on a property let at the Nottingham average rent of £1,009 a month is more than £24,000.
Why an overseas owner is exposed more than a UK one
Because you cannot cure it yourself. A UK resident landlord who discovers the property should have been licensed can apply immediately. An overseas owner cannot: the holder must reside in the UK or be a UK registered company, so you first have to find someone willing to take on the licence holder's legal responsibility, and only then can you apply.
That gap is where the exposure sits. The offence continues while the property is unlicensed, and a tenant who learns of it has a claim worth up to two years of their own rent.
The banning order, at the far end
For repeated or serious offences a banning order may be made, preventing a person from letting property or engaging in letting agency work. Breach of a banning order carries a penalty of up to £35,000. This is the end of the scale rather than the ordinary case, but it is the reason licensing offences should not be treated as a filing matter.
What to do if you think you are exposed
Establish first whether the property is in a licensing area at all, because a good proportion of Nottinghamshire is not. West Bridgford is in Rushcliffe, which operates neither a selective nor an additional scheme. Send us the address and we will tell you which authority governs it.
If it is licensable and unlicensed, take it to a solicitor rather than to a form. Trent Law Solicitors is in our group and can advise on the position, and we can act as licence holder and make the application. The order of those two steps matters, and it is not the order most people choose.
Questions we are asked
What is the penalty for letting without a licence?
It is a criminal offence. A council may prosecute, which carries an unlimited fine, or impose a civil penalty instead. The government's statutory guidance gives starting points of £12,000 for a selective licensing offence and £17,000 for an HMO licensing offence.
Can a tenant claim back their rent?
A tribunal may make a rent repayment order, and the Renters' Rights Act 2025 extended the period to up to two years' rent. At the Nottingham average rent that is more than £24,000.
Can I evict a tenant if the property is unlicensed?
Not on the ordinary grounds. While the property is unlicensed you cannot obtain possession, which is often the consequence that costs a landlord most.
Can I just apply for the licence now?
Not by yourself if you live abroad. The licence holder must reside in the UK or be a UK registered company, so you need that person or company in place first. We can act as licence holder.
What is a banning order?
An order preventing a person from letting property or engaging in letting agency work, made for repeated or serious offences. Breach carries a penalty of up to £35,000.
Sources
Civil penalties under the Renters' Rights Act 2025 and other housing legislation, statutory guidance
Housing Act 2004
Nottingham City Council, Housing Licensing Fee Policy, April 2025
General information about the law and practice in England. Not tax advice or legal advice.
