An important refresher on the UK’s Right to Rent scheme

An important refresher on the UK’s Right to Rent scheme.

When it was introduced back in 2016, the rental industry was talking about little other than the then controversial right to rent scheme. It was designed to crack down on illegal immigration and ensure that only those legally allowed to live in the UK could rent accommodation. Landlords and lettings agents weren’t happy about being tasked with checking the immigration status of all potential tenants. But like all new things, the initial controversy faded, and landlords and agents got on with the new job.

Recently, however, we’ve seen an influx of queries coming from prospective tenants, landlords and some letting agents. Some have been prompted by the ending of special provisions introduced in response to Covid-19. Others are simply looking for clarification. But as there have been some developments which have made carrying out right to rent checks simpler, it feels like the right time for a quick, but important, refresher.

While there was initial resistance to the scheme, it does have benefits for landlords, letting agents, and tenants. For example, landlords can be fined for letting to illegal immigrants, and the scheme provides protection. Additionally, right-to-rent checks can help to ensure that landlords are only letting to tenants who are likely to be able to pay their rent on time. For tenants, right-to-rent checks can provide peace of mind. It’s reassuring to know you are legally allowed to rent the property you’re interested in.

Benefits aside, there’s no doubt that the scheme does have its challenges. The documents that can be used to prove a right to rent come in many formats and can be complex and difficult to understand. This can make it difficult for landlords and letting agents to know whether a potential tenant has the correct documentation. Additionally, the scheme can be time-consuming and costly, as landlords and letting agents may need to pay for third-party checks or even travel to the Home Office to verify documents.

Nevertheless, the checks must be done. The repercussions of not doing them can be severe. Landlords and letting agents can face civil penalties, criminal prosecution, damage to reputation, and even the loss of tenants. So, what can be done to ease the burden?

A key initiative is the Landlord Registration Scheme (LRS). Set up by the government, it allows landlords to register their properties with the Home Office. Once registered, landlords can use a special code – a unique identifier assigned to each property – to share the property’s registration details with letting agents and tenants. Landlords and letting agents simply need to enter the code into the government’s right to rent checker. It’s then paired up with the potential tenant’s own share code which shows that the tenant has the right to rent. By using the LRS and share codes, landlords and letting agents can help to ensure that they are complying with the right to rent rules and avoiding the repercussions of not doing so.

In addition to the LRS and share code system, several third parties now offer a checking service which can lift some of the burden of checking. Most provide a service that does more than verify the initial right to rent but stores copies of the documentation and manages key details like renewal and expiry of residence permissions. Some of these providers use advanced digital technology to verify documentation and prevent fraud.

There’s a great deal of up to date information on the GOV.UK website, helpline numbers and links to the Home Office online checking service. You can also sign up for email updates in any significant changes to the scheme.

Right to rent is here to stay. There are ways to reduce the burden, but no matter which method they choose, landlords and letting agents remain responsible for carrying out the checks. Whenever it feels onerous, remind yourself that these checks are helping to protect landlords, tenants and the wider community.