Oxford property management company that operated unlicensed HMO to pay rent repayment order of £84,877 to group of 44 student tenants

The management company operated a purpose built block of student accommodation that opened in 2020 and which comprised 242 rooms in 41 cluster flats.
The block was inspected by an Oxford Council environmental health officer in September 2021 and the officer advised the management company that it was required to have a licence to operate the building. A licence was applied for 2 weeks later and granted in November 2021.
Oxford Council advised the student tenants that they could apply for repayment of rent paid whilst the property was unlicensed and 44 tenants made a group claim for a rent repayment order after being referred by the council to Flat Justice and Justice for Tenants (two organisations that provide specialist advice and representation for tenants).
The case was heard by the First Tier Tribunal who found that though the failure to apply for an HMO licence in this case was not deliberate but rather "by omission" the cluster of flats were required to be licensed under Oxford Council's additional licensing scheme but, for a period, were not so licensed. The Tribunal decided that each claimant was entitled to a repayment of 35% of rent paid whilst the flats were unlicensed.
Cllr. Linda Smith, Cabinet Member for housing said "whilst this was not a typical case, it does demonstrate the importance of landlords and agents obtaining licences for their accommodation and the potential consequences if they do not."
Oxford now also has a Government approved city wide selective licensing scheme meaning that all privately rented properties in the city, not just HMOs, are legally required to be licensed. The selective licensing scheme went live on 1st September 2022.