Time Limits on HMO Financial Penalties

In general terms, where an HMO contains five or more persons who form two or more households, it must be licenced by the local authority. It is an offence to manage or have control of an unlicensed HMO.

Where a local authority is satisfied beyond reasonable doubt that a person has committed a “relevant housing offence” (including being a person having control or manging an unlicenced HMO), it may – as an alternative to prosecution – serve a penalty notice for up to £30,000 (for offences after 1 May 2026, the maximum is £40,000).

The process by which such a penalty may be imposed is governed by statute. The first stage is for the authority to give a “notice of intent”, which must be “given before the end of the period of 6 months beginning with the first day on which the authority has sufficient evidence of the conduct to which the financial penalty relates”.

In the case of Waltham Forest LBC v Great House (Buildings) Ltd [2026] UKUT 218 (LC), the local authority considered that the defendant had committed an offence. It alleged the offence occurred on 21 September 2023 and sent a notice of intent by first class post on 20 March 2024. The respondent contended that the notice of intent was out of time. It argued that the date six months from 21 September 2023 was 21 March 2024 and that it had only received the notice on 22 March 2024 and so the notice was out of time. The First-Tier Tribunal accepted that argument and the authority appealed.

The Upper Tribunal dismissed an appeal. The authority’s case was that the first day on which it had sufficient evidence of the offence was 21 September 2023. The Act provided that the six-month period began on that day. It followed that the notice was given one day out of time.

Oliver Kew

Published on 14/10/2026