What is the penalty for letting an unlicensed property?

Councils can issue a civil penalty of up to £30,000 per offence as an alternative to prosecution, and tenants or the council can apply for a rent repayment order of up to 12 months' rent.

3 min read · Updated 2 August 2026

Overview

Councils can issue a civil penalty of up to £30,000 per offence as an alternative to prosecution, and tenants or the council can apply for a rent repayment order of up to 12 months' rent. Possession rights are also restricted while unlicensed.

Practical guidance

  • Apply for the licence the moment you realise one is needed.
  • Take advice before serving any notice on an unlicensed property.
  • Keep evidence of prompt remedial action; it reduces penalties.

Related content

General information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.