Right to Rent checks soar 577% as fines increase

Landlords and letting agents in England are conducting Right to Rent checks at an unprecedented rate, with a staggering 577% rise year-on-year, according to research.

Credas Technologies says the surge comes after big increases in fines for non-compliance with the Right to Rent scheme.

It requires verification of a tenant’s immigration status before they can rent a home in the private rented sector.

The maximum penalty for a first offence is now £20,000, a stark rise from the previous £1,000.

This stricter enforcement appears to be driving a change in landlord and agent behaviour, with many embracing new technologies to streamline the checking process.

Guidance on Right to Rent checks changed

The firm’s chief executive, Tim Barnett, said: “In October 2022, the Home Office guidance on Right to Rent checks changed.

“Agents and landlords could no longer accept documents via email, and would instead need to use a certified IDV, or see documents in person.

“During the first three months of 2023, awareness and adoption of these changes was low and reflected in our stats.”

He added: “Another key factor driving Right to Rent checks is the growth of the rental market.

“Figures from the latest Hamptons Monthly Lettings Index show that there were 28% more rental homes in the 12 months to April 2024 when compared to the same period in 2023.”

Announced changes to the EU Settlement scheme

The government has also announced changes to the EU Settlement scheme to simplify the process for tenants with pre-settled status.

These changes will make it easier for landlords and agents to extend the validity period and remove expiry dates from online profiles, the government promises.

This will eliminate the need for repeat checks for tenants who remain in the same tenancy agreement.

The Right to Rent scheme aims to prevent individuals without legal immigration status from accessing private rented housing.

Civil penalty for landlords and agents

The civil penalty for landlords and agents has been raised from £80 per lodger and £1,000 per occupier, to up to £5,000 per lodger and £10,000 per occupier for a first breach.

Repeat breaches are now £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively.

Recent research reveals a rise in fines issued to agents this year, with Q1 recording £165,680, which is greater than the whole of 2023 when it was £151,480.

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