Taylor v Mina An Ltd [2019] UKUT 0031 (LC)

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Court: Upper Tribunal (Lands Chamber)
Date: 2019
Topic: HMO Licensing and Rent Repayment Orders (RROs)

Background:

A property operating as a House in Multiple Occupation (HMO) had a valid licence under the original owner.
Upon sale to a new owner, Mina An Ltd, no fresh HMO licence was obtained, and the property continued to be let to multiple tenants.

A tenant applied for a Rent Repayment Order (RRO) on the basis that the property was being operated without a valid licence.

Legal Issue:

Does an HMO licence transfer automatically with the property to a new landlord upon sale? Not really.

Decision:

The Tribunal held that:

HMO licences are not transferable when a property is sold.
Each new landlord must apply for and obtain their own licence.
Operating an HMO without a licence, even if the previous owner had one, exposes the new landlord to RRO liability.

The tenant’s RRO claim was valid.

Legal Impact:

New property owners must secure proper licensing immediately upon purchase if renting as an HMO.
Tenants can claim rent back where new owners fail to obtain licensing.
Due diligence in property sales involving HMOs is critical.

Links:

Taylor v Mina An Ltd [2019] UKUT 0031 (LC)

Apply for a Rent Repayment Order (RRO1)

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