Stringent rules designed to counter illegal immigration are expected to affect many thousands of buy-to-let landlords. Here, Katie Lofthouse discusses the wide-ranging implications.
Jail is in the pipeline for landlords who flout the rules
Buy-to-let landlords face swingeing penalties for failing to ensure their tenants have the ‘right to rent’ under tough new rules that came into force on February 1.
The government’s controversial legislation includes a civil law fine of £3,000 for landlords who fail to comply. In addition, parliament is currently debating proposals for a criminal offence with a maximum penalty of five years in jail.
The government’s ‘rule of three’
The new rules mean landlords cannot let adults sign residential tenancy agreements unless they satisfy one of three criteria.
The prospective tenant must either be a British citizen, an EEA or Swiss national, or have a right to rent in the UK – for example indefinite leave to remain, or limited leave to remain in a particular immigration category.
Lettings sector is not impressed by minister’s assurance
Immigration Minister James Brokenshire insists the checks are ‘straightforward and do not require any specialist knowledge’. Nonetheless, the scheme has provoked intense criticism in the lettings sector, where it is expected to affect 2.6 million tenants and 1.8 million landlords.
Need to know facts on right to rent checks
Checks must be carried out up to 28 days before the tenancy begins and the Home Office has issued guidance explaining which documents can be relied on to comply with the right to rent regulations.
The quickest and simplest way is for the landlord or agent to inspect and keep a certified copy of the tenant’s passport, along with any immigration endorsement to confirm that they satisfy one of the government’s three requirements.
The official guidance says the check applies equally to all adults living on the premises, regardless of whether they are named on the tenancy agreement. Where limited immigration status is involved landlords must carry out a follow-up check within 12 months, or before the visa runs out.
How long must landlords retain documents for?
Landlords are obliged to keep the copy documents throughout the tenancy and for 12 months after it expires. However, landlords need to be careful not to retain the documents for any longer than necessary, otherwise they could fall foul of the Data Protection Act 1998.
Even tougher measures are in store
The Immigration Bill 2015, which is currently before parliament, means that landlords convicted of knowingly accepting tenants who do not have a right to rent will be committing a criminal offence and could be handed a jail term of up to five years.
If you are a landlord and require further advice on the new right to rent rules, call Katie Lofthouse on 01200 408 303, or email her at katie.lofthouse@whnsolicitors.co.uk
