What has changed regarding 'Right to Rent' checks? What do I need to do from 1st July 2021?

Following the end of the Brexit grace period on June 30th 2021, there have been changes made to right to rent checks which landlords must be aware of.

From July 1st any EU, EEA and Swiss nationals who wish to rent a property in the UK must prove that they have the right to do so. This can be done either through a manual document check or checking via the Home Office’s electronic system.

Landlords must carry out checks on potential tenants of all nationalities, including British citizens, to ensure they have lawful status in the UK. Landlords who fail to carry out checks and are found to have rented a property to a person who does not have the Right to Rent, are likely to be issued penalties.

Important information for landlords on Right to Rent checks:

• If someone has applied for settled status ahead of the June 30th deadline and is waiting for a decision, they have the Right to Rent until their application is processed, including the duration of any appeal.
• Applicants may present their Certificate of Application for the EU Settlement Scheme, provided this has been verified by the Home Office Landlord Checking Service (LCS).
• Landlords are not obliged to conduct retrospective Right to Rent checks on EU, EEA and Swiss nationals who signed a tenancy agreement before and including June 30th 2021
• Landlords must conduct Right to Rent checks must do so in a way that is non-discriminatory.
• Landlords who carry out Right to Rent checks which show an existing tenant no longer has the Right to Rent, do not need to evict the tenant. However, they must make a report to the Home Office in order to protect themselves from being levied a fine.

Stephen Ludlow, Chairman at ludlowthompson says: “It’s crucial that landlords follow Home Office guidance on Right to Rent checks closely. Failure to do so could lead to them incurring substantial fines.”

“Currently, landlords and letting agents may verify the documentation of prospective tenants via video calls. However, they will be expected to revert to in-person checks from September 1st 2021, as the Covid concession comes to an end, or utilise the Home Office Online Checking Service by asking the tenant for their share code.”

You can read more about the ‘Right to Rent’ scheme and how ludlowthompson include this as part of our tenant referencing process by clicking here.