Posts with tag: Right to Rent

Right to Rent Code of Practice Updated

Published On: January 4, 2016 at 9:57 am

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Right to Rent Code of Practice Updated

Right to Rent Code of Practice Updated

The Right to Rent scheme will be implemented in under a month, and the Government has updated its statutory code of practice to help landlords and letting agents get to grips with the new laws.

However, the code has left industry professionals confused as it suggests that the introduction of the scheme will be phased in geographically.

It states that the scheme will be enforced “on a phased geographical basis, and will apply to residential tenancy agreements entered on or after the date of implementation for that area”.

Then the code directs landlords and agents to the Right to Rent website, where it says that “landlords of properties throughout England should check that someone has the right to rent before letting them a property” for tenancies starting on or after 1st February.

The phased geographical implementation may refer to the pilot Right to Rent scheme, which was enforced in Birmingham, Walsall, Sandwell, Dudley and Wolverhampton. Landlords and agents in those areas have been obliged to conduct checks for just over a year.

The code does not make it clear whether there will be a further phased introduction.

However, it does confirm its legal status, stating: “This is a statutory code. This means it has been approved by the Secretary of State and laid before Parliament. The code does not impose any legal duties on landlords, nor is it an authoritative statement of the law; only the courts can provide that.

“However, the code can be used as evidence in legal proceedings and courts must take account of any part of the code which may be relevant.

“Home Office officials will also have regard to this code in administering civil penalties to landlords and their agents under the Immigration Act 2014.”

The code can be found here: https://www.gov.uk/government/publications/right-to-rent-landlords-code-of-practice/code-of-practice-on-illegal-immigrants-and-private-rented-accommodation

 

 

 

 

 

 

 

 

 

 

 

 

Are you ready for Right to Rent?

Published On: November 13, 2015 at 12:44 pm

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Last month, MP’s decided to back the controversial ‘Right to Rent’ legislation as part of the second reading of the Immigration Bill in Parliament. This means that the scheme is moving ever closer to being rolled out across the whole of England, following a prolonged trial period in the West Midlands.

Concerns

However, this trial has uncovered some serious issues for tenants and landlords alike. Research from the pilot scheme shows that some landlords were guilty of discriminating against some tenants purely on the basis of their background. Others were said to turn away some would-be tenants purely because they had a foreign accent.

An investigation conducted by The Joint Council for the Welfare of Immigrants of tenants and landlords in the trial area also found that some tenants were being charged an extra £100 in administration costs. What’s more, some landlords were found to be reluctant to offer viewings to potential tenants who would need more time to provide paperwork, suggesting many migrants could be turned down.

Tips

In light of these problems, buy-to-let landlords should follow these helpful tips in order to be confident and vigilant in conducting Right to Rent checks:

  • Establish who will be living in the property

Landlords should consider if the number of occupiers looking to rent is reasonable for the size, type and condition of the property. All enquiries and responses should be recorded

  • Source original versions of documentation

All agents and landlords should obtain original copies of documentation required that proves a potential tenants’ immigration status. These include passports, visas and national identity cards. Checks must be made up to 28 days before a tenancy agreement can be started.

  • Check in the presence of the holder

It is important that landlord conduct validity checks in the presence of the potential tenant(s). Landlords or agents must be sure that the documents belong to the person(s) in question and pay attention to information such as DOB’s, to ensure they are consistent throughout all documentation.

Are you ready for Right to Rent?

Are you ready for Right to Rent?

  • Make copies and date them

Documents should be copied and retain with the date that they were checked. Copies should be made in a manner in which they cannot be edited at a later date. These in turn should be securely retained, either electronically or by hard copy.

  • Conduct follow-up checks on time

These should be carried out in the same manner as initial checks. If someone is found to no longer have the Right to Rent, the owner does not need to evict. Instead, they should inform the Home Office by phone or email.

  • Get help with proof

If a potential tenant cannot prove their immigration status because of ongoing issues, agents or landlords can request a check from the Home Office. An answer will be sent within two working days.

  • Remember that some properties are excluded

Tied accommodation, local authority tenants and leases of seven years or more are excluded from the checks. In addition, students nominated by a higher educational institution are also exempt.

Hard  

Jane Morris, Managing Director of PropertyLetByUs.com, said, ‘the research shows that some legitimate tenants who cannot easily identify themselves using a British or EU passport are finding it harder to secure somewhere to live.’[1]

‘Under the pilot scheme, would-be tenants have to produce evidence from a checklist of documents that they have permission to be in the UK and landlords have to take a copy for their records. Before dismissing a prospective tenant, it is important that landlords make all the necessary checks.  The legislation requires landlords to carry out extensive checks to ensure a tenant has British, EEA or Swiss nationality.  If the prospective tenant is of a different nationality, their visa or passport will have to be checked to see if they have a right to rent. Landlords are also required to notify the home office if the tenant’s visa expires,’ she added.[2]

[1] http://www.propertyreporter.co.uk/landlords/top-tips-for-landlords-on-conducting-right-to-rent-checks.html

 

 

 

Right to Rent Pilot Scheme Evaluation

Published On: October 21, 2015 at 4:05 pm

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An evaluation of the Right to Rent pilot scheme found that in the first six months, 109 illegal immigrants were discovered.

By mid-September, only nine had been taken out of the UK, with a further five awaiting removal. Another nine were ordered to report to Immigration Enforcement, but failed to do so.

Yesterday (20th October 2015), the Home Office published an evaluation of the pilot scheme that was conducted in the West Midlands.

At the same time, it announced that a national rollout of the Right to Rent scheme will come into force on 1st February 2016. Read our guide on the checks here: /right-to-rent-checks-in-force-from-february/

The report, which covers the first six months of the pilot, from 1st December 2014-31st May 2015, reveals that very few landlords or letting agents were penalised, with just five civil penalty notices served. Also,

Right to Rent Pilot Scheme Evaluation

Right to Rent Pilot Scheme Evaluation

13 referral notices were issued.

The Right to Rent scheme was introduced in the Immigration Act 2014, with the West Midlands pilot using civil penalties.

However, under the new Immigration Act 2015, the penalties will become criminal sanctions.

The Home Office reports that out of 44 letting agents in the region, 36 felt they were informed about the scheme, alongside 70 out of 114 landlords.

It also states that agents voiced concerns over rogue landlords and agents not complying with the scheme.

Compliant agents were worried that immigrants unable to provide documentation could be exploited by the private rental sector.

In addition to online surveys, the Home Office analysed interviews and focus groups, and conducted a mystery shopper experiment.

The report found that the Landlords Checking Service made 109 decisions over prospective tenants’ right to rent in the UK, resulting in 95 yes decisions and 15 no decisions.

As a result of referrals through the scheme, there were 37 enforcement visits in the region.

In total, 109 people were identified as living in the UK illegally, of whom 63 were previously unknown to the Home Office.

The mystery shopper exercise revealed that a higher proportion of black and minority ethnic renters were asked to provide more information when enquiring about a property.

However, the report notes that they were “more likely to be offered properties”1, compared to white British tenants.

Prior to the scheme, 53 out of 64 letting agents always required photographic ID. This increased to 60 out of 64 when the scheme began.

Overall, letting agents believe that the scheme does not have an obvious impact on the market.

A higher proportion of landlords – 27 out of 35 – said the scheme increased their workload, compared with 26 out of 56 agents.

Of these 26 agents, various reasons were given as to why their workload was raised, including: explaining the scheme to tenants and landlords; monitoring when follow-up checks are due; and dealing with unfamiliar paperwork.

Three pulse check surveys were conducted at various points during the evaluation.

During the first pulse check, agents were asked how they planned to carry out the checks. Out of 41 respondents, 20 said they would conduct the checks in-house, 16 would use a tenancy referencing service and five did not know.

Have you thought about how you will conduct the checks?

1 https://www.gov.uk/government/publications/evaluation-of-the-right-to-rent-scheme

 

Right to Rent Checks in Force From February

Published On: October 21, 2015 at 9:59 am

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All private landlords in England must make right to rent checks on their tenants from 1st February 2016. The law was created to tackle illegal immigration, as landlords must ensure their tenants have the right to live in the UK.

You must make the checks if you are a private landlord, have a lodger, sub-let a property or are a letting or management agent working on behalf of a landlord.

Making the checks

  • Before you rent out a property, you must ensure that an adult tenant will live in the home as their only or main residence.
  • You must ask all tenants for original documents that prove that they have the right to be in the UK.
  • When the tenant is present, check the documents are valid.
  • Right to Rent Checks in Force From February

    Right to Rent Checks in Force From February

    Then, make and keep copies of these documents and record the date you made the checks.

If a prospective tenant has an outstanding immigration application or appeal with the Home Office, you can request a Home Office right to rent check.

Tenants 

All potential tenants seeking private rental accommodation will have their immigration status checked from 1st February 2016. Those that sub-let rooms must make the checks on other renters.

Documentation

Landlords will need to see certain documents that show their prospective tenants have the right to be in the UK.

Acceptable documents include:

  • UK passport
  • EEA passport or identity card
  • Permanent residence card or travel document stating indefinite leave to remain
  • Home Office immigration status document
  • Certificate of registration or naturalisation as a British citizen

Stick to the law

Landlords that do not make the checks could be fined up to £3,000 if they let a property to someone who is in the UK illegally.

These checks have been introduced as part of the Government’s reforms of the immigration system.

Find out more here: https://www.gov.uk/government/news/right-to-rent-checks-what-they-mean-for-you 

Are you ready for the checks?

MP’s vote for the Right To Rent

Published On: October 14, 2015 at 10:25 am

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The Immigration Bill, inclusive of the controversial Right To Rent measures, received its second reading in the House of Commons yesterday. This came despite months of calls for the Government to show the results of the pilot project in the West Midlands.

MP’s voted by 323 votes to 274, giving a Government majority of 49.

Findings

During the debate, Shadow Home Secretary Andy Burnham utilised the debate to question current Home Secretary Theresa May on the findings of the pilot scheme. Mr Burnham believes that landlords are still not sufficiently equipped and are unwilling to act as border guards. Under the proposed changes, landlords will be charged with having to check the immigration status of potential tenants.

Burnham suggests that this will lead to widespread discrimination, with many would-be British tenants being unfairly penalised. However, Theresa May said that the measures included in the Bill would lead to ‘greater fairness to British citizens and legitimate migrants.’[1]

Next steps

Following the successful reading of the Bill, the next stage is for MPs to undertake a detailed scrutiny of the plans. After this, the Bill will return to the Commons in order for MPs to consider their changes and then onto the House of Lords, where it will be debated once again.

MP's vote for the Right To Rent

MP’s vote for the Right To Rent

Should the Right to Rent measures remain unchanged in the Bill, it will be the responsibility of all landlords and letting agents to carry out status checks for all new tenancy agreements. In the majority of cases, this will involve the checking of passports or residents permit. Landlords or agents can also use an online form submitted to the Home Office, which promises to provide responses on immigration status within two working days.

If the Bill eventually becomes a Law, these legislations will also apply to individuals taking in lodgers and also to tenants who wish to sub-let properties. A failure to adhere to these rules could see landlords fined £3,000 or even face a jail sentence.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/10/mps-vote-on-right-to-rent-despite-no-results-from-pilot-project

 

Leading agent wants RTR deferred until 2016

Published On: September 18, 2015 at 12:08 pm

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A leading British letting agent has called on politicians to defer the upcoming Right to Rent Immigration checks until the beginning of next year, after what she called a, ‘summer of confusion.’

Lisa Simon, head of letting at Carter Jonas, said that the recent confusion over the implementation of smoke alarm legislation, coupled with changes to the Section 21 notice, means it is already a confusion time for landlords.

Too much

With Prime Minister David Cameron indicating that Right to Rent legislation, covering letting to immigrants, will also come into effect during the Autumn, Simon is worried about landlords’ workloads.

‘There is just too much change to absorb at short notice,’ she observed. ‘The House of Lords decided there had not been enough consultation on smoke and CO alarm legislation and rejected it with three weeks to go. Landlords thought they had a reprieve in meeting the deadline only to find this week that the legislation had gone through with exactly two weeks to the deadline so those who prevaricated now need to rush to avoid possible £5,000 fines,’ she continued.[1]

No idea

‘Last December, a trial of rules that required landlords and letting agents to check the immigration status of all tenants was introduced in the West Midlands,’ Simon continued. ‘After the election, David Cameron revealed that the national roll-out would take place this autumn, Well, autumn is here and no-one has any idea what is going on.’[1]

Leading agent wants RTR deferred until 2016

Leading agent wants RTR deferred until 2016

With the migrant crisis showing no signs of abating, Simon believes that, ‘Right to Rent coming in now, with so many people on the move across Europe to claim refugee status and what some have unkindly called swarms of people trying to cross from France, would be an absolute nightmare.’[1]

‘It must not go ahead until things are more settled, both in terms of population movement and discovering just how effective the trial period has been,’ she declared.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/9/defer-right-to-rent-until-2016-demands-leading-agent