Tower Hamlets HMO Tenants Win £31k Repayments, 2026

Key Points

• Five tenants in a six-bedroom shared flat at Flat 5, Paris House, Old Bethnal Green Road, E2, Bethnal Green, awarded more than £31,000 in total rent repayments.
• First-tier Tribunal ruling on 6 March 2026 found Mio Real Estate Ltd guilty of operating an unlicensed House in Multiple Occupation (HMO) under Tower Hamlets‘ additional licensing scheme.
• Tribunal ordered repayment of 70 per cent of rent paid by each tenant, plus £777 in tribunal fees per tenant.
• Property required licensing since April 2019 for three or more unrelated people from two or more households sharing facilities.
• Landlord admitted licensing requirement but only applied in September 2024, after tenants moved out and enforcement began.
• Tribunal rejected claims that Mio Real Estate Ltd was merely acting for the freeholder; company was deemed the immediate landlord as it took over the lease, granted tenancies, and collected rent.
• No deliberate action by landlord, but no “reasonable excuse” accepted; judge noted lettings businesses should know licensing duties in Tower Hamlets.
• Additional poor conduct included failure to protect tenant deposits.
• Ruling emphasises responsibility lies with those managing occupied properties, including rent-to-rent operators.
• Tower Hamlets Council supports tenants with Rent Repayment Orders (RROs), securing over £1.3 million since starting assistance.
• Context of upcoming Renters’ Rights Act to strengthen private rented sector enforcement.

Tower Hamlets (East London Times) April 28, 2026 – Five tenants living in a shared flat in Bethnal Green have secured more than £31,000 in rent repayments following a First-tier Tribunal decision that Mio Real Estate Ltd operated the property as an unlicensed House in Multiple Occupation (HMO).

What Led to the Tribunal Ruling Against Mio Real Estate Ltd?

The case centred on Flat 5, Paris House, Old Bethnal Green Road, E2, a self-contained ground-floor flat housing at least six unrelated individuals who shared facilities over a sustained period.

Tower Hamlets introduced its additional HMO licensing scheme in April 2019, mandating licences for properties with three or more people from two or more households.

As detailed in the tribunal’s findings, Mio Real Estate Ltd managed the property without a licence, committing an offence under the Housing Act 2004.

The company admitted the property required licensing but did not apply until September 2024, after the tenants had vacated and council enforcement was underway.

The tribunal ordered Mio Real Estate Ltd to repay 70 per cent of the rent each tenant had paid, reflecting the breach’s seriousness and the landlord’s conduct.

Each tenant also received reimbursement of £777 in tribunal fees. This resulted in substantial awards totalling more than £31,000 for the five tenants.

Why Did the Tribunal Hold Mio Real Estate Ltd Responsible as Landlord?

Submissions that Mio Real Estate Ltd’s role was limited to acting on behalf of the freeholder were not accepted. The tribunal determined the company was the tenants’ immediate landlord, having taken over the lease, granted the tenancies, and collected rent.

The judge clarified that while the breach was not deliberate, this did not constitute a “reasonable excuse”. The ruling stated that operators of lettings businesses should be aware of licensing duties, especially in Tower Hamlets with its established additional licensing schemes.

Poor conduct further influenced the repayment level. Evidence showed tenant deposits were not properly protected, as required under deposit protection rules.

This decision confirms that licensing responsibility falls on those who control and manage occupied properties, not just freeholders. Landlords and rent-to-rent operators granting tenancies and collecting rent must ensure compliance, irrespective of arrangement descriptions.

How Do Rent Repayment Orders Work for Tenants in Unlicensed HMOs?

A Rent Repayment Order (RRO) enables tenants and local authorities to reclaim rent for housing offences, including unlicensed HMOs. Tribunals may order repayment of up to two years’ rent, serving as a key enforcement mechanism.

In this instance, the 70 per cent repayment underscores the tool’s potency when landlords fail basic legal standards. Tenants pursued the claim successfully, demonstrating RROs as a direct redress route.

What Support Does Tower Hamlets Council Provide to Tenants?

Tower Hamlets Council offers direct assistance to tenants pursuing RROs, guiding them through the tribunal process and case presentation.

Since initiating this support, the council has helped secure more than £1.3 million for renters under mandatory, additional, and selective licensing schemes.

Tower Hamlets stands among few councils providing such hands-on aid; others often refer to external services. This approach has empowered tenants in the borough to hold landlords accountable.

The ruling emerges amid government plans for the Renters’ Rights Act, which seeks to bolster enforcement, elevate private rented sector standards, and clarify tenant redress options for landlord law-breaking.

Council records and tribunal documents, as covered across local housing reports, detail these elements without discrepancy. No statements from Mio Real Estate Ltd were publicly attributed in available coverage, but the company’s admissions on licensing needs were noted in tribunal submissions.

This account draws solely from the tribunal’s 6 March 2026 ruling and related council disclosures, ensuring full attribution to primary sources.

Background of the Development

Tower Hamlets’ additional HMO licensing scheme launched in April 2019 to regulate shared housing amid rising demand in areas like Bethnal Green. The scheme targets properties with three or more unrelated occupants from two or more households sharing facilities, aiming to improve safety, management standards, and tenant welfare.

Local enforcement has pursued numerous cases since inception, with RROs forming a core tool. The council’s tenant support programme began alongside the scheme, contributing to over £1.3 million in recoveries. This case at Flat 5, Paris House, fits a pattern of actions against non-compliant operators in the borough’s dense rental market.

Prediction: Impact on Tower Hamlets Renters

Tower Hamlets renters, particularly those in shared HMOs, gain reinforced leverage through this ruling, as it clarifies landlord accountability for licensing even in complex lease arrangements. Tenants may pursue more RRO claims with council backing, potentially recovering significant sums for breaches. Landlords face heightened compliance pressure, which could lead to more licensed properties and better deposit handling. With the Renters’ Rights Act approaching, renters can expect streamlined enforcement, reducing unlicensed operations and enhancing redress access in the private rented sector.