NEW: Landlords to follow new discrimination Code for Right to Rent checks

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Landlords have been given new advice on how to complete Right to Rent checks without discriminating against tenants.

The Home Office initiative is, to a greater extent, a response to the political and legal pressure from a Court of Appeal win by the Joint Council for the Welfare of Immigrants, which proved successfully that the scheme had led to discrimination.

The new code of practice, which is still going through a consultative process after being promised last year, applies to residential tenancy agreements starting on 6th April as well as where a repeat check on an existing tenant needs to be carried out after this time, to retain a statutory excuse.

It outlines how landlords should not make assumptions about a person’s right to rent, or their immigration status based on their colour, nationality, ethnic or national origins, accent or length of time they have been resident in the UK.

They must not simply check the status of those who they think appear or are likely to be migrants, treat those with a time-limited right to rent more or less favourably, treat those who have access to the Home Office online checking service or who provide a manual document listed as an acceptable document more or less favourably.

Direct discrimination

As well as direct discrimination, the code highlights indirect discrimination, which could include insisting that a prospective tenant has been resident in the UK for more than five years, which would mean migrants are less likely to be able to meet the requirement.

Landlords must also not discriminate against someone based upon the type of right to rent check which is required.

For example, a British or Irish citizen can decide that they do not want to use an IDSP for digital identity document verification and use a physical document instead.

For those prospective tenants who cannot evidence their right to rent, the code adds that landlords must try to keep the offer of accommodation open to give them the opportunity to produce documents to demonstrate this.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NEW: Landlords to follow new discrimination Code for Right to Rent checks | LandlordZONE.

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Why sell the geese that lay the golden eggs?

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Shortly after implementing the strategies recommended by our Property118 Tax Consultant my husband and I were asked to leave a Testimonial comment. However, just a few short sentences were not enough for me, so I have decided to submit this Readers Question instead.

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LEASEHOLDS: Landlords urged to have their say on mixed-use review NOW!

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Landlords are being urged to have their say on a consultation into a fairer system for leaseholders in England and Wales.

The Department for Levelling Up, Housing and Communities has proposed allowing more leaseholders in mixed-use buildings to buy the freehold through enfranchisement or to take over the management of their building through the right to manage. 

Under the current system, if shops and other similar properties take up more than 25% of the total floorspace, then leaseholders cannot collectively bid to take control of their building.

New proposals would give them the right to manage or buy their building outright, by increasing this limit to 50%.

Mandatory leaseback

Other proposals aim to make it cheaper for leaseholders to collectively buy their freehold. A ‘mandatory leaseback’ would require landlords to keep a lease on some properties in the building.

This means reducing the cost of a collective buyout of their building – making it a reality for thousands more leaseholders.

The government is also calling for views on changes to support greater use of commonhold as an alternative form of homeownership to leasehold, including for those in shared ownership schemes in England. The consultation closes on 22^nd February.

Chair of The Lettings Industry Council, Theresa Wallace (pictured), tells LandlordZONE that many landlords have properties in blocks of flats where the management is undertaken by a third party that they have no control over.

She adds: “The Law Commission proposals would allow more residential leaseholders to buy the freehold of their property – through enfranchisement – or take over the management of their building – through the right to manage – and so it is important that leaseholders engage with this consultation.”

Details of the consultation and how to respond.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LEASEHOLDS: Landlords urged to have their say on mixed-use review NOW! | LandlordZONE.

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LATEST: Report highlights rental home supply crisis as shortfall set to hit 540,000

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The UK will fail to meet rising targets for new private rented homes without more investment in the sector, according to the latest research.

A report by the economics consultancy Capital Economics, commissioned by the National Residential Landlords Association (NRLA), reveals that if owner-occupation and social housing continue at their 10-year average growth rate, PRS supply would have to increase by 227,000 homes every year to meet government targets and an anticipated 1.8 million new households over the next decade.

However, it suggests that without changes in tax or other policies, private rented sector stock will drop by a further 540,000 properties during that time.

The projections come as government figures show that the supply of private rented housing in England has fallen by almost 260,000 during the past five years. 

Youthful cohort

The Capital Economics report explains that demand will only increase as the 15-24-year-old cohort in the population is forecast to grow by 866,000 (11%) by 2030.

It says that in order to meet targets for housing supply the Treasury needs to encourage investment in the sector to encourage and support an increased rate of new builds, the switching of commercial property to residential use, the switching of stock from short-term to long-term lets and bringing empty homes back into use.

Ben Beadle (pictured), NRLA chief executive, says: “Today’s report highlights in stark detail the supply crisis now engulfing the sector. Without urgent action, the increasing number of people looking for affordable housing will be the ones to struggle as they face less choice and higher rents as supply dries up.”  

Andrew Evans, managing economist for Capital Economics, adds: “Even with increased provision of affordable housing and higher rates of owner-occupation, both of which are important, our research shows that significant additional investment is needed by landlords in the private rented sector.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Report highlights rental home supply crisis as shortfall set to hit 540,000 | LandlordZONE.

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227,000 new private rented homes required per year to meet government targets

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The UK needs almost 230,000 new private rented homes a year to meet government housing targets across the UK, according to a new report by the economics consultancy, Capital Economics.

The report, commissioned by the National Residential Landlords Association

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Homes for 2,900 rough sleepers

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Rough sleepers across the country will be supported off the streets and into long-term homes with £174 million funding boost, the Department for Levelling Up, Housing and Communities has announced.

The funding, which forms part of the government’s Rough Sleeping Accommodation Programme

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What’s your opinion on pets? Animal health researchers launch survey

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The National Office of Animal Health (NOAH) is quizzing landlords about pets as part of its attempt to widen access for dog and cat owners within the private rented sector.

The body, which represents the UK animal medicine industry, hopes to encourage wider use of the model tenancy agreement and wants to work with landlords and tenants’ associations to promote new pet-friendly policies and responsible pet ownership. 

Its campaign, Securing the Right to Rent with Pets: Making One Health Housing a Reality, has launched an online survey, asking whether landlords allow tenants to keep animals, and if so, what type.

If they don’t, it wants to know if they’re concerned about damage, suffer from allergies, or have had previous problems with pet-owning tenants.

It also gives landlords a chance to explain what they think would protect them if they relented: an increased deposit to cover damage, an insurance policy, or an ability to charge pet premiums by increasing the rent. It even wants to know if they keep pets themselves.

Very difficult

NOAH believes that despite the significant and clear benefits, owning a pet in rented accommodation remains very difficult. It says widening access to pets will actually bring benefits to landlords that outweigh their often-inflated fears.

A survey released earlier this week by Quintain Living revealed that nearly one-third of pet-owning renters have been hiding their animals from landlords for more than three years.

Its survey of 1,000 renters also found that 38% don’t feel comfortable asking for permission to keep a pet and 29% had difficulty finding a property to rent as a pet owner.

Take the NOAH survey.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What’s your opinion on pets? Animal health researchers launch survey | LandlordZONE.

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Verbally abusive tenant refuses rent increase on renewal of AST?

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I have a very difficult and combative tenant who is quibbling over my proposed rental increase of just over 3%, at the lower end of current increases. After verbally abusing me, he is now trying to negotiate.

I met him halfway in the negotiations and have suggested an increase of just under 3%.

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