Landlords and letting agents across England are conducting Right to Rent checks at unprecedented levels, experiencing a remarkable 577% year-on-year increase, recent research reveals.
Credas Technologies attributes this surge to significantly increased fines for non-compliance with the Right to Rent scheme. This regulation mandates the verification of a tenant’s immigration status before they can secure housing in the private rented sector.
The maximum penalty for a first offence has soared to £20,000, a dramatic rise from the previous cap of £1,000. This stricter enforcement is prompting a shift in behaviour among landlords and agents, many of whom are adopting new technologies to streamline the verification process.
Changing Guidance on Right to Rent Checks
Tim Barnett, Chief Executive of Credas Technologies, explained: “In October 2022, the Home Office updated its guidance on Right to Rent checks. Agents and landlords can no longer accept documents via email and must now use a certified IDV or verify documents in person. Awareness and adoption of these changes were initially low but have picked up significantly in the first quarter of 2023.”
Barnett also noted the expanding rental market as a critical factor driving the increase in checks. According to the latest Hamptons Monthly Lettings Index, the number of rental homes grew by 28% in the year leading up to April 2024 compared to the previous year.
EU Settlement Scheme Revisions
Further changes are on the horizon, with the government announcing revisions to the EU Settlement Scheme aimed at simplifying the process for tenants with pre-settled status. These updates will extend the validity period and remove expiry dates from online profiles, reducing the need for repeat checks for tenants who maintain the same tenancy agreement.
The Right to Rent scheme’s primary objective is to prevent individuals without legal immigration status from accessing private rented housing. The civil penalties for non-compliance have been substantially increased, now reaching up to £5,000 per lodger and £10,000 per occupier for a first offence. Repeat offences see fines rising to £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000, respectively.
Recent statistics highlight the impact of these changes, with fines issued to agents in the first quarter of this year totalling £165,680, surpassing the total fines of £151,480 for the entire previous year.
This crackdown reflects a broader effort to enforce immigration laws within the rental market, driving significant changes in how landlords and agents operate across England.