Huge Hike in Right to Rent Civil Penalty Rates
Most landlords will already be aware of their obligations to undertake “Right to Rent” checks as required under The Immigration Act 2014. These checks must be undertaken on every occupier aged 18 or over to ensure they are legally entitled to rent property in the UK before they move into the property.
The Government regularly updates its code of practice for landlords as regulations and practices change. The guidance was last updated on 8 February 2024 and the most significant update is in relation to the level of fines issued for non-compliance of the right to rent checks. Landlords and agents should be aware of the huge hike in fines and ensure they avoid civil penalty fines by undertaking right to rent checks. The previous and new rates are detailed below.
For landlords with no previous breaches of the code
The previous rate of £80.00 (per lodger) and £1,000 (per tenant) has increased to £5,000 (per lodger) and £10,000 (per tenant).
For landlords with repeat breaches of the code
The previous fine rate of £500 (per lodger) and £3,000 (per tenant) has increased to £10,000 (per lodger) and £20,000 (per tenant).
Landlords and agents should be aware of the updates, and in particular, changes to acceptable documents and the civil penalty rates.
New Right to Rent Guidance Notes for Residential Landlords and Agents and updated Right to Rent Checklists are available to assist with the right to rent process.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.