Posts with tag: Right to Rent

Attempt to Have Right to Rent Rollout Postponed is Defeated

Published On: February 26, 2016 at 9:52 am

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Earlier this week, we reported that two members of the House of Lords were attempting to have the UK rollout of the Right to Rent scheme postponed, believing that there was not sufficient evidence to prove that the scheme was effective.

It has now emerged, after debate, that their bid was defeated.

The peers expressed many concerns over Right to Rent and the proposed introduction of criminal penalties for those that do not comply with the rules.

Liberal Democrat peer Baroness Hamwee claimed that the Government had pledged to not introduce excessive administration through the scheme.

She said: “I do not think that that would resonate with the letting agent whom I heard interviewed on Radio 4’s You and Your programme. What he said was: ‘I have become an immigration officer’.

“Indeed, he has become an immigration officer who is liable to civil penalties and who, under the current Bill, will face criminal sanctions.”

At present, landlords or their letting agents must conduct immigration status checks on all prospective adult tenants. If they do not comply with the law, they will face civil penalties under the Immigration Act 2014. However, the new Immigration Bill – currently going through Parliament – seeks to impose criminal sanctions.

Attempt to Have Right to Rent Rollout Postponed is Defeated

Attempt to Have Right to Rent Rollout Postponed is Defeated

Baroness Hamwee continued: “Landlords have to make reasonable inquiries as to the immigration status of all the occupants before letting a property. Well, it is not actually that easy.

“I have been through the material on the Home Office website. The user guide is 39 pages long and there are 12 hyperlinks – there may be more, I may have miscounted – plus a code of practice, plus a short guide. There are 25 types of document which may show immigration status, more if there has been a name change.”

She explained: “These have to be examined and copied. And not all of them are invalid if the expiry date has lapsed. A checking agent on the same programme said that there are 400 documents in the EU that would support the right to rent. Leaving aside unfamiliar documents, how easy is it to spot fakes?”

The full debate can be read here: http://www.publications.parliament.uk/pa/ld201516/ldhansrd/text/160224-0002.htm#16022460000396

Meanwhile, Open Democracy has reported that the Right to Rent scheme is causing discrimination against individuals with every right to live in England, including British citizens.

It highlighted two cases:

  • In the first, Tony and Mary are a British couple of Chinese descent, with a close relative and her baby son – also British – staying with them. The landlord informed the couple that he could be fined if they did not provide the passport and immigration status of the baby, despite Right to Rent only concerning adults.
  • In the second case, Sara is an Australian citizen married to a French citizen, working in the UK. She left her husband and searched for rental accommodation. The letting agent told her that they could not go ahead with the tenancy, as they were not satisfied that Sara has the right to rent – as the wife of a French citizen, she does.

The study on the Open Democracy website states that people like Tony, Mary and Sara are the real victims of the scheme, and not those it intends to target.

It also questions whether illegal immigrants discovered through Right to Rent checks will actually leave the country. This has also been highlighted after it emerged that landlords do not need to report illegal immigrants to the Home Office if they discover them through immigration checks.

Open Democracy claims: “It appears more likely that they [illegal immigrants] will resort to unscrupulous landlords, therefore eliminating the underground business of exploitative landlords that the Government purports to want to deter.

“Another category of people who risk resorting to these landlords are those in limbo: those who do not have the right to rent, for example, because they overstayed their visa, but who are not removable, for instance, because they have a pending application to stay in the UK based on human rights grounds.

“If they are not allowed to rent, yet also non-removable, this group risks either resorting to unscrupulous landlords or applying for local authority accommodation. This will be especially true of parents of British children, which the local authorities have an obligation to accommodate.”

The story concludes: “The scheme will, therefore, not only struggle to meet its aims, but also risks increasing the workload of local authorities, and therefore constitutes an additional burden on their limited resources.”

The whole piece is here: https://www.opendemocracy.net/5050/nath-gbikpi/britain-s-disqualified-adults-no-passport-equals-no-home

Controversy surrounding the Right to Rent scheme has been rife recently, with one case regarding Ryanair supposedly weakening the enforcement of the scheme and shocking statistics that reveal that many landlords still don’t understand their obligations under Right to Rent.

We will keep you all informed of any changes to the law and offer advice for landlords on all lettings issues.

Right To Rent scheme slammed by peer

Published On: February 25, 2016 at 12:43 pm

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A senior Liberal Democrat peer has accused the Government of hypocrisy over the Right To Rent scheme.

Baroness Hamwee has slammed the notion of landlords or letting agents being jailed for housing an illegal immigrant. She believes that the potential presence of an illegal migrant is due to, ‘the government’s failure,’ in protecting Britain’s borders.

‘Immigration Officers’ 

Writing on the Politics Home website, the Baroness said that Right to Rent, ‘turns landlords and agents into immigration officers.’

Continuing, she criticises the Government for allowing the scheme to roll out nationally, while the pilot scheme in the West Midlands was still continuing. ‘It could hardly be said that the pilot was of adequate size, or a representative sample and that the scheme does not make discrimination all too easy,’ she noted.[1]

‘The great majority of landlords, owning one or two properties, are amateurs who let out a property to supplement pensions or top up salaries. It is these landlords who are likely to be caught out,’ Hamwee added.[1]

Right To Rent scheme slammed by peers

Right To Rent scheme slammed by peers

Discrimination

However, Baroness Hamwee believes it is not only migrants that could be discriminated against through this legislation. She feels that, ‘the 12 million Britons who do not have a passport will find it difficult to prove their right to live in their own country, like all the non-British residents who have a legitimate right to be here but whose documentation is not easily identified.’[1]

‘It is likely that the extra administration costs (created by a government keen on deregulation) will be passed on to tenants. The government’s own estimates indicate that this will amount to an extra cost to tenants of £17.9m over 10 years,’ Hamwee concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/right-to-rent-peer-accuses-government-of-hypocrisy-over-migrant-checks

 

Two Peers to Call for Right to Rent Rollout to be Postponed

Published On: February 22, 2016 at 9:41 am

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Two peers are set to challenge the Government this week over the rollout of the Right to Rent scheme.

On Wednesday (24th February), Liberal Democrat peer Baroness Hamwee will move that the commencement order of Right to Rent under the Immigration Act 2014 should be annulled.

Two Peers to Call for Right to Rent Rollout to be Postponed

Two Peers to Call for Right to Rent Rollout to be Postponed

Meanwhile, Labour peer Lord Rosser will move that “this House regrets that the Immigration Act 2014 (Commencement No 6) Order 2016, laid before the House on 11th January was laid following inadequate consultation, and asks the Government to undertake a further consultation before the commencement order comes into force”1.

The Right to Rent scheme, which went live in England on 1st February, requires landlords or their letting agents to check the immigration status of prospective tenants before the start of a tenancy.

Further rollouts to the rest of the UK are expected, but the schedule has not been announced.

The Residential Landlords Association (RLA) says that it supports attempts to annul the commencement order.

The organisation believes that the evidence from the pilot scheme in the West Midlands, which operated from December 2014, was insufficient to justify the rollout.

The RLA believes that landlords were not sufficiently prepared for the scheme, as they weren’t offered the necessary information. It also warns that UK nationals without a passport would find it incredibly difficult to access private rental housing.

In a recent survey of 1,500 private landlords, the RLA found that over 90% had not received any information regarding Right to Rent, either by email, from an advertisement, from a leaflet or online, and 72% did not understand their obligations.

The RLA adds that tenants may see their rents increase, as over a quarter of landlords said they are considering raising rent prices to cover the costs of conducting the immigration checks.

Almost half (44%) said they would only let their rental properties to those with documents that they were familiar with, while 45% would only accept tenants who could provide the required documents immediately.

The RLA fully supports postponing the rollout.

1 http://www.publications.parliament.uk/pa/ld/ldordpap.htm

The Court Case That Could Weaken Right To Rent

Published On: February 18, 2016 at 11:30 am

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A recent court case ruling could affect the way that landlords and letting agents are penalised under the Right to Rent scheme.

Since 1st February, landlords or their letting agents have been obliged to conduct immigration checks on all prospective tenants.

However, the court case in question did not involve landlords or letting agents – it regarded the budget airline Ryanair. The outcome of the case suggests that the Government may be open to legal challenges from landlords or agents under the private rental sector Right to Rent scheme.

The Home Office has claimed that it will not penalise a landlord or agent that has been caught out by well-forged documents.

In the case, Ryanair was appealing against Home Office fines imposed for carrying two illegal immigrants into the UK.

Judge Damien Lochrane noted that even trained immigration officers find it difficult to spot forgeries.

He ruled that Ryanair should not have been fined for flying the Albanian couple from Majorca to Edinburgh in May 2015.

The pair had already passed through checks by Spanish border police and Ryanair, before UK border control officers at Edinburgh airport picked up their false documents.

The judge insisted that the way the regime for airlines to check passports is operated by the Home Office “offends the basic concepts of justice and indeed rule of law”1.

The Court Case That Could Weaken Right To Rent

The Court Case That Could Weaken Right To Rent

He added that airline staff could not be expected to spot well-forged documents that even trained immigration officers could not detect.

The Policy Director at the Residential Landlords Association (RLA), David Smith, points out the ruling is not binding on other courts.

However, he says the case does raise the prospect that under Right to Rent, a landlord or agent that has been tricked by a well-forged document could be successful in an appeal against any action taken against them by the Home Office.

The Government has previously stated that it will not go after landlords and agents that have been duped by false documentation, but it has not been clear on the details.

It has emphasised that it will target landlords and letting agents that fail to conduct checks and who are persistent offenders.

The Ryanair ruling arrives as the new Immigration Bill makes its way through Parliament. If passed, it will introduce criminal penalties for landlords and agents that do not carry out Right to Rent checks.

Smith states: “This court ruling vindicates what we have been saying all along, that landlords cannot and should not be expected to act as border police or to detect forgeries that trained and experienced airline staff and immigration officers might miss.

“In light of this case, and to save the Government money from losing similar actions brought by landlords, we call on the Government to provide better information to landlords about document forgeries and to offer more clarity as to the legal responsibility of landlords and agents duped by forged identity documents.”1

1 https://www.lettingagenttoday.co.uk/breaking-news/2016/2/industry-body-says-court-case-may-weaken-right-to-rent-enforcement

Landlords Do Not Need to Report Illegal Immigrants Under Right to Rent

Published On: February 16, 2016 at 9:31 am

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A landlord or letting agent that conducts immigration checks on prospective tenants do not need to report individuals if they are found to be illegal immigrants, as long as they do not allow that person to rent a property.

The wording of this rule arrives in a new House of Commons briefing paper on the Right to Rent scheme.

Landlords Do Not Need to Report Illegal Immigrants Under Right to Rent

Landlords Do Not Need to Report Illegal Immigrants Under Right to Rent

The scheme, which was rolled out across England on 1st February, currently carries civil penalties. However, the new Immigration Bill seeks to impose criminal penalties with large fines and possible jail sentences for landlords and letting agents.

The Right to Rent scheme is part of a Government plan to deter illegal immigrants.

However, judging by the new ruling, illegal immigrants will be free to go from one landlord or letting agent to another, without any previous checks being made known to those in the lettings industry or the Home Office.

The briefing paper states: “With regards to new tenants, landlords are under no obligation to report an applicant with no right to rent to the Home Office, provided they do not allow them to occupy the property.”

Although the statement relates to landlords, under the scheme, landlords can pass their legal responsibility onto their letting agent if it is confirmed in writing.

The new briefing paper also discusses the pilot Right to Rent scheme in the West Midlands. It says: “14 of 55 letting agents had received complaints from landlords or potential tenants, most frequently mentioning discrimination and delayed tenancy starts due to checks. 52% of respondent landlords say they had concerns about the scheme. The majority of landlords and letting agents saw no benefit to the scheme.”

Yesterday, we reported that a huge 72% of landlords alarmingly do not understand their legal obligations under the Right to Rent scheme.

The Government’s advice on conducting the checks can be found here: https://www.gov.uk/check-tenant-right-to-rent-documents/who-to-check

The new Immigration Bill, currently going through Parliament, introduces four new offences, aimed at “those rogue landlords and agents who deliberately and repeatedly fail to comply with the Right to Rent scheme or fail to evict individuals who they know or have reasonable cause to believe are disqualified from renting as a result of their immigration status”.

The new briefing paper can be found here: http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN07025#fullreport

For all of the latest changes to landlord law and guidance on complying with private rental sector regulations, check back to LandlordNews.co.uk.

Many landlords unaware of Right To Rent obligations

Published On: February 15, 2016 at 10:08 am

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Landlords are once again being warned that they must comply with the regulations of the Right to Rent scheme, with a shocking new survey suggesting that the majority are unaware of the changes.

An investigation carried out by the Residential Landlords Association (RLA) revealed that 72% of landlords do not understand their duties under the policy. More alarmingly, 90% said they had received no information about the new law before it was rolled out nationally on 1st February.

Concern

There is tangible concern in the buy-to-let sector that many landlords are at risk of a £3,000 fine, as a result of not carrying out the correct checks.

Maynard Burton, a partner at law firm MFG solicitors, said that he was becoming increasingly concerned that landlords will be caught out. He noted that, ‘landlords who do not act face fines of up to £3,000. That’s potentially ruinous for someone who is self-employed and I’m concerned, as are other specialists, at just how few landlords have grasped not only their obligations, but the implications for them.’[1]

Many landlords unaware of Right To Rent obligations

Many landlords unaware of Right To Rent obligations

‘They really need to get advice immediately on the checks they should be making and the records they should be keeping,’ he added.[1]

Right To Rent Duties

Designed to make it more challenging for illegal immigrants to rent and ultimately stay in Britain. However, critics say that that the scheme makes landlords carry out duties to carry out checks normally conducted by trained immigration officers.

Burton went on to say, ‘it’s easy to sympathise with landlords who feel that these new rules are effectively turning them into unpaid immigration officials. Equally, it’s easy to feel frustrated at the lack of information that has been given out by the authorities. But the law is here and it’s in force. Landlords have to act now.’[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-warned-over-immigration-check-fines.html