Landlords see a huge rise in Right to Rent fines
Landlords and letting agents in England have been hit with a significant rise in fines for failing to comply with Right to Rent regulations.
According to government figures, penalties jumped by a staggering 405% last year – hitting £151,480 compared to just £29,960 the previous year.
The number of fines issued also increased dramatically, rising from 32 in 2022 to 155 in 2023.
The Right to Rent scheme requires landlords to verify the immigration status of all adult tenants so they don’t rent illegally. They must also keep accurate records to avoid a hefty fine.
‘Facing increased legislation and compliance requirements’
The chief executive of Credas Technologies, Tim Barnett, said: “Landlords and letting agents are facing increased legislation and compliance requirements, and without the support of technology, they are vulnerable to heavy fines and even prison.
“It’s more important than ever that landlords and letting agents conduct these checks and keep accurate records for a year after the tenancy agreement ends, as they could face an unlimited fine and up to five years in prison if they are found to have knowingly rented to someone who didn’t have the right to live in England.”
He added: “Landlords and letting agents also need to be able to demonstrate a fair tenant selection process to avoid claims of unlawful discrimination in respect of any of the protected characteristics under the Equality Act 2010.
“They will need to demonstrate, with evidence, that they have a carefully considered a fair selection process that has been followed stringently.”
Credas is a certified Identity Service Provider and can perform ID checks in real-time using facial recognition.
Big hike in penalties
The pressure on landlords intensified further in February with a big hike in penalties – first-time landlord offenders now face fines of up to £5,000 per lodger and £10,000 per occupier.
That’s a steep rise from the previous £80 and £1,000 respectively.
Repeat offenders face even steeper penalties, with fines reaching £10,000 and £20,000 per lodger and occupier.
These stricter measures are part of the Home Office’s wider crackdown on illegal immigration.
Ensure fair tenant selection practices
Landlords and agents must also ensure fair tenant selection practices to avoid accusations of discrimination.
The Equality Act 2010 protects individuals from discrimination based on characteristics like race, nationality and gender.
Landlords need to demonstrate a fair and objective selection process.
The Home Office also updated its Right to Rent guidance in October 2022 so landlords can verify IDs either manually, remotely via a certified IDSP, or through the Home Office Online checking service.
Video calls for verifying British IDs are no longer accepted.
Right to Rent tips for landlords and agents
Credas also offers these tips for landlords and agents to prepare for stricter tenant application processes:
- Develop clear and objective selection criteria
- Standardise the application process with a standard form
- Offer equal viewing opportunities to all interested applicants
- Avoid discriminatory language and imagery in advertisements
- Consider blind application review to eliminate unconscious bias
- Utilise certified IDSP software for real-time ID verification
- Educate staff on fair housing laws and anti-bias practices
- Diversify the tenant selection team for a wider range of perspectives.
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