Landlords and letting agents in England have seen a significant surge in fines due to non-compliance with Right to Rent regulations. Government figures reveals a staggering 405% increase in penalties last year, totalling £151,480 compared to £29,960 the previous year. The number of fines issued also skyrocketed from 32 in 2022 to 155 in 2023.
What is Right to Rent?
Under the Right to Rent scheme, landlords must check the identity and verify the immigration status of all adult tenants to prevent illegal renting and maintain accurate records to avoid hefty fines. A right to rent check usually involves passport checks, and can be carried out by the landlord, or by a letting agent acting on their behalf. It is against the law to rent to people who are in the UK illegally, and if a landlord or agent is found to be not doing checks at all, not running checks properly, or not keeping proper records, this can lead to fines.
Tenancy Checks
Right to Rent is just one of the checks which a landlord or agent might want to run before agreeing to rent a property to you. Although Right to Rent will be the basic level of checking which all landlords should be doing, many will also run credit checks to make sure that tenants can afford the rent and take up references from previous landlords. Many of these checks can be carried out online which makes things easier and less stressful for both the landlord and the people hoping to get the property tenancy agreed.
Record Keeping
The Home Office compliance team have the job of making sure landlords are sticking to the rules and seeing the right documentation to prove that renters are in the UK legally. Their compliance staff can arrive unannounced at estate agent offices asking to see records, and if landlords can’t show proof that they have been doing checks properly they may be hit with a fine, even though none of their tenants are found to be illegal.
Proper record-keeping can also help landlords avoid any accusations of discriminating against prospective tenants from a specific group, or of a certain nationality. Asking every tenant to prove their Right to Rent, irrespective of nationality or race, should go some way to prevent discrimination claims under the Equality Act 2010. Many landlords have signed up with a third-party identity checking organisation to run their Right to Rent checks, and their service often includes record-keeping too.
Penalties for Landlords
In February 2024, penalties for first-time offenders under the Right to Rent rules soared, with fines of up to £5,000 per lodger and £10,000 per occupier, a significant increase from previous levels. Repeat offenders face even harsher penalties, up to £10,000 and £20,000 per lodger and occupier. The high levels of fines explain exactly why tenants can expect to come across a stricter level of checking than ever before. If you are in the UK legally, then you really have nothing to worry about – it’s just another administrative hurdle to cross.
