What is a Rent Repayment Order?
A Rent Repayment Order (RRO) is a legal order issued by the First-tier Tribunal (Property Chamber) requiring a landlord or agent to repay rent, housing benefit, or the housing costs element of Universal Credit to tenants or local authorities. RROs are granted when a landlord has committed one of several offences specified under housing legislation.
Offences Leading to a Rent Repayment Order
An RRO can be made against a landlord or agent who has committed one of the following offences:
- Using or threatening violence for securing entry into premises – Section 6, Criminal Law Act 1977.
- Illegal eviction or harassment of tenants – Section 1, Protection from Eviction Act 1977.
- Failure to comply with an improvement notice – Section 30, Housing Act 2004.
- Failure to comply with a prohibition order – Section 32, Housing Act 2004.
- Breach of a banning order – Section 21, Housing and Planning Act 2016.
- Managing or controlling an unlicensed property – Section 95, Housing Act 2004 (as amended by para. 4 Sch. 9, Housing and Planning Act 2016).
- Managing or controlling an unlicensed HMO (House in Multiple Occupation) – Section 72, Housing Act 2004.
Who Can Apply for a Rent Repayment Order?
- Tenants: If rent has been paid directly to the landlord, tenants can apply for an RRO to recover up to 12 months of rent.
- Local Authorities: Councils can apply for an RRO to recover housing benefit or Universal Credit payments made to a landlord.
The RRO Process
- Application to the Tribunal:
- Either the tenant or local authority applies to the First-tier Tribunal.
- The Tribunal must be satisfied beyond reasonable doubt (the criminal standard of proof) that the offence occurred. A criminal conviction is not required for an RRO to be granted.
- Determining the Amount:
- The RRO can cover rent or benefits paid during the period when the offence was being committed, up to a maximum of 12 months. For offences like harassment, illegal eviction, or violence to secure entry, the period ends with the date of the offence.
- Factors Considered by the Tribunal:
The Tribunal considers:- Landlord conduct: The behaviour of the landlord during the tenancy.
- Landlord financial circumstances: Whether the repayment would cause undue hardship.
- Previous penalties or convictions: If the landlord has been convicted of or fined for the offence.
- Tenant Conduct:
If the application is made by the tenant, the Tribunal also considers:- The tenant’s conduct.
- Deducting housing benefit or Universal Credit payments received.
- Enforcement:
- If granted, the RRO is enforceable as a debt in the County Court.
Defences Against a Rent Repayment Order
Landlords may challenge an RRO application by arguing:
- The alleged offence was not committed.
- The period or amount claimed is incorrect.
- The tenant’s behaviour contributed to the situation.
Appealing a Rent Repayment Order
Appeals against RRO decisions are made to the Upper Tribunal (Lands Chamber). Applications for appeal must be based on a point of law and submitted within the specified timeframe after the Tribunal’s decision.
Key Points About Rent Repayment Orders
- No Criminal Record:
Although RROs are based on offences, they are civil claims and do not result in a criminal record for the landlord. - Repayment Limits:
The maximum repayment period is 12 months of rent or benefits. - Civil Nature:
RROs are handled as civil matters, even though they arise from criminal offences.
Summary for Landlords and Tenants
- Landlords: Ensure compliance with housing regulations to avoid penalties, including RROs. If an RRO is issued, landlords can appeal or dispute the claimed amount.
- Tenants: If you suspect your landlord has committed an offence, consider applying for an RRO to recover rent. Seek legal advice to strengthen your case.
Understanding RROs ensures landlords and tenants know their rights and responsibilities, helping to maintain transparency and accountability in the rental market.
If you have received an application against you seeking a RRO, contact our expert legal team who will be able to assist you.
Our experts can assist you if you have had an application for an RRO brought against you, contact our team now.