Are there penalties for not having an HMO licence?

It is a criminal offence to rent and manage property as an HMO without an adequate licence. This is subject to Section 72 of the Housing Act 2004.

If a Landlord is found guilty of running a licensable HMO without a licence, they can be fined up to £20,000 and can be made subject to a Rent Repayment Order which would demand the repayment of any rent received from the time they were notified that a licence was required.