For more information on keeping compliant throughout the rental process, check out our ultimate guide to tenancy management, including advice on pre-tenancy checks, HMO licensing, HHSRS legislation, and more.
On 7 October 2023, the Government made significant changes to the Right to Rent scheme in England. The updates are designed to make it easier for agents to conduct right-to-rent checks and reduce legal risk to property managers and owners.
What is the Right to Rent scheme?
The Right to Rent scheme is a government program that requires landlords and letting agents to check the immigration status of their tenants before renting to them. Landlords and letting agents must check that their tenants have the right to live in the UK and that they do not have an outstanding application for leave in order to successfully rent a property.
The Right to Rent scheme applies to all landlords and letting agents in England, including private landlords, letting agents, and housing associations. It also applies to all tenants, regardless of their nationality.
What are the recent changes to the Right to Rent scheme?
The following changes to the Right to Rent scheme came into effect on 7 October 2023:
- Letting agents are no longer required to verify a digital Certificate of Application (CoA) with the Landlord Checking Service (LCS) when conducting a Right to Rent online digital check involving an outstanding EU Settlement Scheme application made on or after 1 July 2021.
This is because the Home Office is confident that the EU Settlement Scheme process is robust enough to ensure that only those with the right to live in the UK are granted a CoA.
Other changes to the Right to Rent scheme came into effect on 1 October 2022. These include:
- Letting agents must check the right to rent of all tenants who occupy their properties, including British and Irish citizens.
- Letting agents can conduct checks in person or remotely using an identity verification service provider (IDSP).
- Letting agents must keep copies of all Right to Rent checks for at least 12 months after the tenancy ends.
What do letting agents need to do to comply with the Right to Rent scheme?
To comply with the Right to Rent scheme, letting agents must follow these steps:
- Check the right to rent of all tenants who occupy their properties, including British and Irish citizens.
- Conduct checks in person or remotely using an identity verification service provider (IDSP).
- Keep copies of all Right to Rent checks for at least 12 months after the tenancy ends.
Letting agents who fail to comply with the Right to Rent scheme could face a civil penalty of up to £3,000 per tenant. They may also be committing a criminal offence if they knowingly rent to someone who does not have the right to live in the UK.
How can letting agents make sure they are complying with the Right to Rent scheme?
There are a number of things that letting agents can do to make sure they are complying with the Right to Rent scheme:
- Use a Government-backed Identity Service Provider (IDSP). An IDSP can help agents conduct Right to Rent checks in a timely and efficient manner. IDSPs can also provide letting agents with guidance on complying with the Right to Rent scheme.
- Staying informed of the latest changes to the Right to Rent scheme. The government regularly updates the Right to Rent guidance. Letting agents should check the guidance regularly to ensure they are aware of any changes.
- Seek legal advice. If letting agents are unsure about how to comply with the Right to Rent scheme, they should seek legal advice.
Tips for letting agents
Here are some additional tips for letting agents on how to comply with the Right to Rent scheme:
- Make sure that you have a robust process in place for conducting Right to Rent checks. This process should be documented and communicated to all of your staff.
- Train your staff on how to conduct Right to Rent checks properly. This training should cover the latest changes to the Right to Rent scheme.
- Ensure you have a process for securely storing all copies of all Right to Rent checks for at least 12 months after the tenancy ends.
The Right to Rent scheme is an important part of the Government's efforts to prevent illegal immigration. It helps to ensure that only those with the right to live in the UK are able to rent a property.
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