Currently viewing the tag: "difficulties"
Right To Rent Immigration Checks Making PRS Landlords Over Cautious

Right To Rent Immigration Checks Making PRS Landlords Over Cautious

Lawful Tenants Refused Rental Properties
Because Of Right To Rent Immigration Checks

Right to Rent immigration checks could cause more UK private rented sector (PRS) landlords to refuse tenancy applications from lawful tenants because they are over cautious about letting to tenants with foreign accents and names or have unfamiliar identity documents.

According to the Residential Landlords Association, (RLA), the complexity of the Government’s plans to turn landlords into unpaid Border Agency staff could see lawful tenants being refused housing.

The warning comes as new research by the Joint Council for the Welfare of Immigrants (JCWI) indicates the difficulties caused by the Government’s Right to Rent scheme, originally piloted in the West Midlands, concluding that UK PRS landlords Right to Rent checks have resulted in discrimination against tenants who appear “foreign”.

The JCWI research discovered that:

  • 42% of landlords were less likely to consider tenant applications from someone who did not have a British passport,
  • 27% of landlords were reluctant to engage with tenancy applications from people with foreign accents or names

Under the new immigration bill, PRS landlords are set to be legally responsible for checking the immigration status of tenants. Following the pilot scheme in the West Midlands, the Government recently announced that the immigration checks by landlords would be expanded nationwide, with landlords facing up to five years in prison for failure to undertake the Right to Rent checks.

Residential Landlords Association policy director, David Smith, said: “Whilst the RLA opposes discrimination against tenants because of their race or nationality, the Government’s plans are causing confusion and anxiety for many landlords. If the Government expect landlords to act as border police it should provide the training and material needed to give them the confidence to carry out the checks required of them. In the absence of such support, today’s research sadly shows the inevitable consequences of the policy which the RLA has long voiced concerns about. Faced with considerable sanctions, landlords will inevitably play it safe where a tenant’s identity documents are either unclear or simply not known to them. It is concerning that the Government remains committed to rolling out the Right to Rent policy nationwide without first publishing its assessment of the impact it has had in its own pilot area. Ministers should halt plans to proceed with its rollout to allow time for proper scrutiny and consideration of the impact it is likely to have.”

The research by the Joint Council for the Welfare of Immigrants comes before the publication of the Home Office’s own assessment of the Right to Rent pilot scheme detailing its level of effectiveness.

There seems to be a huge communication breakdown somewhere, we as landlords are now unpaid members of the UK Border Agency, like it or not, we mustn’t discriminate against any tenant applicant because it is an “ism” and can be punished by imprisonment and a large fine, however, if we house someone in need, we leave ourselves open to prosecution and a large fine. If we act in a professional manner, we are accused of not caring, but if we have too much contact with tenants we are seen as overbearing and interfering. If we spend money on properties we are seen as rich money grabbers that are open to exploitation and if we don’t spend vast amounts to correct damage caused by tenant lifestyles as and when tenants demand then we are called tight and heartless. Homeless charities want the UK PRS closed down, the Government want as much of our profits as they can get their hands on and the media think we are all descendants of Rachman and Rigsby – How is the system supposed to work?

Bank Of England States That 2% Interest Rate Rise Would Put 480,000 Property Owners Into Mortgage Arrears

Bank Of England States That 2% Interest Rate Rise Would Put 480,000 Property Owners Into Mortgage Arrears

Bank Of England States That 2% Interest Rate Rise Would Put 480,000 Property Owners Into Mortgage Arrears

UK property buyers have an average mortgage debt of around £83,000 (GBP) plus many will have unsecured loans of up to £8,000 (GBP), however many are typically earning less than £43,000 (GBP) a year

The Bank of England has warned that up to half a million property owners could be at risk of falling into mortgage arrears once interest rates rise from their historic 0.5% low.

The BoE said the number of UK property owners expected to run into difficulties would increase by a third to approximately 480,000 in the event of a two-percentage-point increase in the cost of borrowing.

The BoE stressed the proportion of borrowers having trouble paying their mortgage loans should remain well below the record mortgage arrears levels of the early 1990’s, when the UK suffered its worst post-war property crash, provided that earnings incomes rose alongside interest rates.

Continue reading »

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!