The Immigration Act 2014 introduced the concept of 'right to rent' to the private rented sector. Originally introduced in the West Midlands, right to rent requires landlords and agents check the immigration status of their prospective occupiers at the outset of the tenancy. Failure to do so could result in fines for landlords and letting agents as of February 1st 2016 across England.
From December 1st 2016, the government has introduced additional penalties and offences relating to right to rent. Landlords now face potential imprisonment for failure to check the occupier's right to rent status, so it is even more important that they do it correctly every time. This guide will help prepare landlords for the current requirements of this scheme.
Right to rent means simply that the occupier has a right to rent a property in the UK. Anyone without it is disqualified from renting. This can be broken down into two different groups, permanent and time limited rights to rent. Each has different requirements.
The process for carrying out an initial right to rent checks is as follows:
If a landlord does discover the occupier has lost or is about to lose their right to rent status, they should complete the form to the Home Office as soon as possible.
In addition to this, landlords should be taking reasonable steps to remove the occupier from the property, if subsequent checks prove they have lost their right to rent status. 'Reasonable steps' can vary depending on the circumstances and the government has produced some guidance on this topic.
If the landlord or agent is informed by the Home Office that the occupier has no right to rent, then the landlord must take steps to evict as soon as reasonably possible.
If a landlord is charged with the civil offence of renting to someone without right to rent, then the old penalty still applies. This runs up to a maximum of £3000 per occupier without a right to rent in the UK.
If a landlord is charged with the new offence, allowing someone to let the property while being disqualified from renting in the UK, then they can be tried in the magistrate or crown court. This carries an unlimited fine or potentially up to 5 years in prison.
The RLA is led to believe that the new offence will be used for repeat offenders, while the old penalty will continue to be applied in most cases. Nevertheless, landlords and agents need to be very careful as they could easily be tried under either offence due to their similarity.