Accountancy Newsletter July 2016
DAC Beachcroft's Accountancy newsletter features topical news and insights for our clients and contacts.
Published 20 June 2016
The new provisions relating to the UK-wide introduction of the right to rent scheme (brought in by the Immigration Act 2014) come into force on 1 February 2016.
Essentially, this is the government's attempt to make it harder for individuals who have no leave to remain in the UK (or whose leave is time-limited) to rent in the private sector; but the upshot is the introduction of statutory liability (of between £1000 and £3000 per unlawful occupier) and an obligation to self-report to the Home Office for private landlords (or their agents) who don't complete the proper and detailed due diligence process.
Although a few exemptions apply, if an agent or its client landlord enter into ASTs they are going to be at risk and will need to comply.
Agents should therefore have prepared for the implementation and have a clear understanding of what is required of them in relation to the new rules, if they are assuming responsibility on behalf of their client landlord for the right to rent compliance. The process for determining whether a prospective tenant and any adult occupiers have the requisite right to rent in the UK is quite complex. It is important that all AST's and terms and conditions of management are updated to reflect the obligations of the parties and limitations thereof.
The rules are broadly as follows:
If in doubt as to what will be required you should seek guidance now.