10:23 AM, 10th October 2022, About 12 months ago
Letting agents are leaving themselves open to fines or imprisonment if they fail to comply with the new guidelines for Right to Rent, one technology firm says.
From 1 October, the UK government introduced new rules for both Right to Work and Right to Rent but Credas Technologies says there is a potential lack of awareness by letting agents on their new obligations when screening potential tenants.
The firm is one of the leading companies in the anti-money laundering sector and says it has seen a significant level of activity from UK companies when it comes to the changes to Right to Work guidelines.
However, the same can’t be said for the changes to Right to Rent.
Under the new rules, the government removed the interim guidance implemented during the pandemic which allowed identity verification to take place via video call, a change that impacts a great number of those working and renting.
The aim of Right to Work and Right to Rent is to tackle and deter illegal immigration into the UK by preventing those who don’t have lawful immigration status from working or accessing living accommodation.
If an individual’s immigration and citizenship status doesn’t give them the Right to Rent in England, they mustn’t be allowed to do so and it’s up to letting agents or landlords to ensure that nobody slips through the gaps when it comes to securing living accommodation.
A lot of publicity has been given to the Right to Work changes as they impact every company that employs staff, but less has been written about Right to Rent changes.
It is this knowledge gap that could cause real problems for letting agents who, as a result, fail to comply with the new rules, says Credas.
The new Right to Rent rules state that letting agents and landlords are obliged to conduct Right to Rent checks manually, via the Home Office Online Scheme, or through an Identity Service Provider (IDSP).
Credas Technologies is one of just 16 certified DPS providers operating within the UK.
Essentially, an IDSP uses digital technology – known as Document Validation Technology (IDVT) – to automatically check a prospective tenant’s right to rent.
Right to Rent checks previously had to be conducted manually by the letting agent and completed while the prospective tenant was physically present in the room.
Since the pandemic, video calls have been acceptable, but this is no longer the case and all checks must now be done either manually again, or by making use of the digital upgrade.
If agents fail to comply and an illegal immigrant is, therefore, able to rent a home, the punishment can be a fine and even imprisonment.
Tim Barnett, the chief executive of Credas Technologies, said: “The latest raft of changes make it much easier and faster for letting agents and landlords to complete the required Right to Rent and Right to Work checks.
“But, if the new rules aren’t followed, the punishments are severe.
“It seems as though these changes have largely flown under the radar within the industry and there’s not a lot of information out there for agents compared to the Right to Work scheme.”
He added: “In situations like this, ignorance is not a valid excuse so any agents who aren’t aware of the changes face unlimited fines and even prison time for letting someone rent when they don’t have the legal right to do so.”
Previous Article7 top tips to consider before you purchase an existing HMO
Next ArticleCan I issue a Section 21?