New 'Right to Rent' offences come into force – what does this mean for landlords?
- 1st December 2016
- Buy-To-Let Property News
Introduction of new legal checks for Landlords to carry out to ensure correct tenant identity
The Home Office announced on the second of November that the offences relevant to the private rental sector, the ‘Right to Rent’ offences, as detailed in the Immigration Act 2016, will come into force from 1 December.
The new measures consolidate earlier regulations that came into effect in February and are designed to make it easier for landlords to evict tenants that are disqualified under the regulations.
It is now a criminal offence for landlords or agents acting on behalf of them to rent a property if they have “reasonable cause to believe” the property is being let to a disqualified renter. This includes UK nationals as well as non-UK nationals.
Landlords must now check that any potential tenant aged 18 or over can legally rent their property checking before the start of a new tenancy. This is the case even if the tenant is not named on the tenancy agreement, there is no tenancy agreement, or even if the tenancy agreement is not in writing.
Stephen Ludlow, chairman at ludlowthompson, comments: “As regulation measures have come in the barriers to entry for landlords and agents has quite rightly risen.
“This latest measure is a further illustration of how letting and Buy to Let is an established and mature market where those that embrace these measures enjoy consistently good returns.
“Over the years we have seen a tightening of safety regulations related to gas and electrical installations and environmental measures such as Environmental Performance Certificates.
“Additionally, both the Assured shorthold tenancy and Tenants Deposit Scheme are now well established.
“The number of quality long-term tenants has improved and this has underpinned market rents over an extended period.
“Whilst there are changes in respect to Mortgage interest relief allowances all of these additional costs and services are tax deductible. Buy to Let and renting remain both a tax efficient and sound investment with total returns on our portfolio consistently trending at 10% since the start of the millennium."
For the latest government guidance and documentation relating to the 'Right to Rent offences' please click here.
This latest measure is a further illustration of how letting and buy to let is an established and mature market where those that embrace these measures enjoy consistently good returns
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS