Right To Let Regulations: Impacting On Who Landlords Let To?
It is obvious that Landlords need to spend some time considering who to let their flat to. If there is no demand for rental property, a Landlord may be happy to let the property to anyone but, this is rarely the case. There is an elevated level of demand for rental accommodation and Landlords understand the quality of tenant can impact on the return they receive.
Therefore, it is likely that Landlords spend a lot of time thinking about who they should let to, but there are also regulations to consider when choosing between tenants.
One thing that Landlord’s must bear in mind is the “Right To Rent” policy of the Government. This is where Landlord’s must undertake checks to ensure that a tenant has the legal right to rent in the United Kingdom. A Landlord that fails to undertake these checks or lets property to someone who is not eligible to rent in the UK may face fines or other punishments.
Many Landlords make big decisions based on Right To Rent regulations
It is dealing with this regulation that has seen the Residential Landlords Association, the RLA, calling for a judicial review on the Right To Rent policy. This is because many Landlords are deciding against letting property to people from outside of the UK because they are wary of the possible sanctions if they make a wrong or ill-informed decision.
In a study undertaken by the Joint Council for the Welfare of Immigrants, the following results were found:
- 51% of Landlords had been put off letting to a foreign national because of the Right To Rent policy
- 48% of Landlords stated they would be less likely to let to someone who didn’t hold a British passport because of the fear of sanctions
- 49% of Landlords said they would be less likely to let to a tenant who only held a limited-time permission to live in the UK
One reason that the RLA have raised concerns comes with the fact that 17% of residents of the UK do not hold a passport. The RLA has called on the policy to be suspended until a full study of the impact of the policy is carried out.
Many Landlords have concerns about discriminatory matters
This is not the only instance of discrimination in the rental market being an issue of late. There was a case where a female tenant was victorious over a letting agent who refused to accept the female because of the benefit status she held. This has led to calls for a review on agents and Landlords who don’t accept applications from “DSS” tenants.
Given the important nature of these regulations, many Landlords will err on the side of caution, but this may lead to many suitable tenants missing out. If you want to stay informed about the latest regulations regarding the letting sector, stay in touch with Villabela. We aim to support Landlords and letting agents in their work, and we look forward to helping you soon.
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