Right to Rent checks soar 577% as fines increase

Right to Rent checks soar 577% as fines increase

0:04 AM, 30th May 2024, About 4 weeks ago 4

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Landlords and letting agents in England are conducting Right to Rent checks at an unprecedented rate, with a staggering 577% rise year-on-year, according to research.

Credas Technologies says the surge comes after big increases in fines for non-compliance with the Right to Rent scheme.

It requires verification of a tenant’s immigration status before they can rent a home in the private rented sector.

The maximum penalty for a first offence is now £20,000, a stark rise from the previous £1,000.

This stricter enforcement appears to be driving a change in landlord and agent behaviour, with many embracing new technologies to streamline the checking process.

Guidance on Right to Rent checks changed

The firm’s chief executive, Tim Barnett, said: “In October 2022, the Home Office guidance on Right to Rent checks changed.

“Agents and landlords could no longer accept documents via email, and would instead need to use a certified IDV, or see documents in person.

“During the first three months of 2023, awareness and adoption of these changes was low and reflected in our stats.”

He added: “Another key factor driving Right to Rent checks is the growth of the rental market.

“Figures from the latest Hamptons Monthly Lettings Index show that there were 28% more rental homes in the 12 months to April 2024 when compared to the same period in 2023.”

Announced changes to the EU Settlement scheme

The government has also announced changes to the EU Settlement scheme to simplify the process for tenants with pre-settled status.

These changes will make it easier for landlords and agents to extend the validity period and remove expiry dates from online profiles, the government promises.

This will eliminate the need for repeat checks for tenants who remain in the same tenancy agreement.

The Right to Rent scheme aims to prevent individuals without legal immigration status from accessing private rented housing.

Civil penalty for landlords and agents

The civil penalty for landlords and agents has been raised from £80 per lodger and £1,000 per occupier, to up to £5,000 per lodger and £10,000 per occupier for a first breach.

Repeat breaches are now £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively.

Recent research reveals a rise in fines issued to agents this year, with Q1 recording £165,680, which is greater than the whole of 2023 when it was £151,480.


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Comments

John MacAlevey

10:48 AM, 30th May 2024, About 4 weeks ago

Ah..HMG can`t stop the boats..we`ll hammer landlords..as usual.

Jo Westlake

10:59 AM, 30th May 2024, About 4 weeks ago

I would be interested to know which IDVT providers have a service that reliably works for UK nationals and has suitable pricing for small scale landlords. Having spent 2 hours last night trying to find a company with the correct government approval and transparent pricing and Trustpilot reviews that aren't awful I'm still none the wiser.

I usually use Vouch for referencing but none of their IDVT checks (that they charge extra for) have worked. One was something to do with NFC settings and the other two wouldn't allow documents to be uploaded as something was pending. Vouch didn't have a clue what was going wrong so it has never been rectified.

The Share Code system for international applicants is brilliant. I just want something as easy for UK applicants.

moneymanager

11:18 AM, 30th May 2024, About 4 weeks ago

As a former anti money laundering reporting officer, I've always seen actual docs before entry, it isn't difficult and costs nothing.

Michael Booth

8:06 AM, 31st May 2024, About 4 weeks ago

Cash cow time , has a landlord you are now a unpaid boarder force officer immigration officer, police officer ,social worker, and has previously said a easy target for council goverment fines .

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