While you and I might not normally take too keen an interest in the various Immigration Bills that have been brought into the rule of law by recent Parliaments, I suspect most letting agents would certainly have kept a keen eye on the latest which received its Royal Assent last month.
As you will no doubt know by now this particular Bill has brought in some specific responsibilities for private landlords with regard to validating the immigration status of prospective tenants, and of course those using letting agents will now reasonably expect this to be included within the services they receive. While all concerned have until October this year before the process becomes a legal requirement, it's worth considering the changes and how in practice our sector is to deliver on them.
So, why now And why put the onus of responsibility on private landlords and letting agents The simple fact is that the Government believes many illegal immigrants in the UK end up residing in private rented housing when they first arrive in the UK. By making it harder for these individuals to house themselves, they believe it will help weed out those living here illegally. I suspect they also hope it will act as a deterrent to those who might consider following the same well-trodden path.
This is the next step in a concerted approach to not just flushing out illegal immigrants but also cracking down on those landlords who might seek to house and exploit them. You may recall the Government has previously focused on the so-called bed in a shed' rogue landlords who are housing people in completely inappropriate structures and over-crowding those dwellings' to particularly dangerous levels.
The focus is again on private rental sector landlords but this time those we might like to think of as more reputable. The Government no longer wants landlords to be complicit in accommodating illegals' and it is holding them directly responsible for ensuring each tenant has the right documentary evidence to demonstrate they are living in the country legitimately. Failure to comply with this new statutory requirement will result in financial penalties with suggested fines running at £1k to £3k per adult living in a property who is found to be an illegal immigrant.
Considering the whole issue, and perhaps given the Government's political hue, it should be of no surprise that curbing illegal immigration to the UK is a real priority. However, like many in the industry, I wonder whether the decision to hold private landlords accountable for checking the status of tenants is the right way to go about this and deliver the results the Government is seeking. After all, both landlords and agents need to ensure there is a practical way to check the status of tenants and it must also be straightforward and efficient.
Decisions to permit tenants to move into properties are often made very swiftly and the system needs to respect this market reality - the good news is that landlords and agents can take documentation such as passports, birth certificates, driving licences and so on, on face value without the need for further checks. Landlords or agents will not be expected to be able to spot high quality fakes, but if there is suspicion about the prospective tenant's credentials then a decision not to let the property to that individual must be made. There are also ongoing responsibilities that may need to be fulfilled, for example, if a tenant's right to reside in the UK has a specific time limit, checks must be made either annually or before the expiry date if that is longer than 12 months. Again, failure to carry out these subsequent checks could attract fines of up to £3k.
The Home Office will operate an enquiry service which should help those who may be unsure about what documents are acceptable or if there is a less common form of ID presented by the tenant. Given the need to reach this clearance quickly it has been decided that if a query is made, and the Home Office does not respond within 48 hours, then the landlord will be permitted to proceed.
The other piece of good news for landlords and agents is that this requirement is not being applied retrospectively - it does not apply to existing tenancies but only those effected after the October implementation date. Many will point to this as an example of more red-tape and bureaucracy for the private rental sector and the market predicts that the costs of the exercise will ultimately be shouldered by the tenant. There are of course benefits as the new regime should mean that legitimate tenants are not beaten to properties by those residing here illegally and it will favour reputable landlords and agents - something to be thankful for.
*Rob Clifford is Chief Executive of CENTURY 21 UK
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