Currently viewing the tag: "penalties"
Landlords Face Tougher Penalties Under Immigration Bill Proposals

Landlords Face Tougher Penalties Under Immigration Bill Proposals

Landlords Must Evict Illegal Immigrants Or Face Prison Under New Immigration Bill Proposals

It has been announced that UK private rented sector (PRS) landlords could face a 5 year prison sentence if they fail to conduct proper ‘Right to Rent’ checks included in new Government proposals for the Immigration Bill

The proposed changes to legislation will require PRS landlords to verify the immigration status of all prospective tenant applicants, before tenancies are agreed. Any landlord who repeatedly fails to conduct these checks would be in breach of a new offence, carrying maximum penalties of five years’ imprisonment or a fine.

Continue reading »

Will Landlords Be Safe Under New Rental Rules?

Will Landlords Be Safe Under New Rental Rules?

Tenants Charter could put tenants in a

stronger position over PRS landlords

Regulations which hand private rented sector tenants more power and rights to request longer leases have been greeted with cautious optimism, although the new code of practice, intended for launch by the Government, would bring in much-needed protection for many tenants from rogue and inexperienced landlords.

The proposed Tenants’ Charter, could mean honest and hard working landlords are at a disadvantage and could be put off from renting out properties.

The results of the introduction, could lead to another shortage of available rental stock for the UK property market leading to rent increases and landlords becoming trapped by more stringent legal binding agreements.

Continue reading »

Fresh Warnings Over Rent-To-Rent

Fresh Warnings Over Rent-To-Rent

Rent-To-Rent Contracts May
Breach Mortgage Agreements

National newspapers are claiming that the Rent-To-Rent strategy for maximising profits from rental properties is immoral and illegal

Private rental sector landlords who utilise a rent-to-rent strategy, by which a property investor agrees to rent a property from the owner with the intention of sub-letting it to tenants for a profit, are being urged to check with their mortgage lenders that the practice will be allowed.

The warning was printed in The Sunday Times and follows last week’s news published by The Guardian newspaper and landlord news portal LandlordToday.co.uk, on the rent-to-rent phenomenon, which drew a mixed reaction.

Some lenders will not allow sub-letting, including The Mortgage Works (TMW), although BM Solutions does permit sub-letting.

Continue reading »

Landlords expected to do UK border agency's job for them

Landlords expected to do UK border agency’s job for them

Private landlords are set to become an extra line in UK Border Control as they will be legally responsible for ensuring that they only let rental properties to people allowed to be in the UK under immigration laws announced in the Queen’s Speech.

This means that Private Rental Sector (PRS) and social housing landlords will have a responsibility to make sure their tenants are in the country legally

Over 3 million buy-to-let landlords are rental property owners in the UK private sector and will be responsible for checking the immigration status of all potential tenants, with fines running into thousands of pounds for those breaking the law.

Employers will also face more substantial fines for employing on illegal immigrants.

It appears that UK landlords and employers are expected to police the immigration system as unpaid members of the UK Border Agency.

Landlords are being given additional responsibility with no recompense other than the threat of heavy fines for failure to comply. Why are we expected to do the UK Border Agency’s job for them when they are paid handsomely for failing to do the job they are employed by the Government to do?

Does this mean that Landlords will be given a financial incentive to turn informant?

I don’t think so…

The new measures are included in an amended Immigration Bill will also limit the ability of European migrants to claim UK state benefits and ensure that the right to residence in the UK on the basis of family commitments is not abused by criminal elements. The UK judicial system will be expected to balance the nature and seriousness of the crime committed against the right to remain resident in the UK.

Temporary migrants will be charged for use of NHS services and only those who have lived in an area for at least two years will qualify for social housing. Regulations will also be amended to ensure that European immigrants cannot claim benefits for more than six months if they do not actively seek legal employment and show they have a genuine chance of obtaining work.

The legislation has been drawn up as the Coalition Government struggles to contain the electoral threat posed by the UK Independence Party (UKIP), which has hard-line immigration policies.

The details of how the measures will be implemented will be set out later in the year. The plans will be the subject of a formal consultation in the coming months.

Ministers expect the legal requirements on landlords will affect those letting rooms in houses of multiple occupancy (HMO) properties. However, the measure will be universal and it will be the responsibility of all landlords to seek copies of passports and appropriate visas.

It is unclear how landlords are supposed to verify the authenticity of documentation, as many employers have already discovered to their cost since the tightening of employment rules surrounding immigrant workers, as falsified information has no way of being checked and is only up to the diligence of the employer to ascertain the true identity of their employees.

The limit of the financial penalties set to be levied on landlords who fail to comply is also yet to be decided but is expected to be severe and may run into thousands of pounds.

Rent paid in advance does not count as a deposit

Court Of Appeal Rules That Rent In Advance Is Not A Deposit

Court Of Appeal Rules That Rent In Advance Is Not A Deposit

The landmark Court of Appeal ruling means that landlords and their appointed letting or property managing agents are not obliged to treat rent paid in advance as a deposit, as that would require protection under the Housing Act 2004.

The Court of Appeal’s decision was made in respect of the long-running case of Johnson v Old, where the tenant was offered a six-month tenancy and was asked for six months’ rent in advance, because she did not have a guaranteed fixed income.

The agreement in the case provided a confusing element as the agreement stated that the rent should be paid monthly in advance, but also said that the rent should be paid six months in advance.

The tenancy was subsequently renewed on the same terms before becoming a periodic tenancy where the rent was paid monthly in advance.

The landlord attempted to gain possession of the property, by serving a Section 21 notice to the tenant, Anne Old.

The tenant countered the Section 21 notice, saying that it could not be legally served because she had paid the rent in advance, which she thought should have been treated as a deposit and therefore protected.

The tenant’s argument was successful at the first court hearing, but was then challenged successfully by the landlord at a second.

The tenant then appealed the judges 2nd decision, and with the help of legal aid, the case then went to the Court of Appeal, which gave its decision in favour of the landlord. 


Continue reading »

UK Landlords have been warned not to become complacent by the Tenancy Deposit Scheme (TDS) ahead of the deposit regulation changes due at the beginning of April.

The new legal requirements for deposit protection allow a 30-day period to supply proof of deposit registration to the tenant instead of 14 days as from 6th April 2012.

The new tenancy deposit regulations state that the landlord can be sued on Day 31 for up to three times the value of the deposit provided by the tenant at the start of their tenancy, if the deposit has not been registered with one of the three official Government run deposit schemes or if the prescribed information has not been provided.

The TDS have summarised the changes and have also issued plain English answers to all the important questions brought forward by the changes due when the new Localism Act comes into force, including retrospective changes, penalties for missing the new deadlines, renewals, relevant persons and what happens with running tenancies.

Steve Harriott, TDS chief executive said: “The new provisions for tenancy deposit protection are welcome. But the extra time for registration is not a licence for landlords and agents to ignore the law. It means that the anomalies in the original Act have now been straightened out to everyone’s benefit.”

The TDS plain English answers to the new provisions for deposit protection can be found at: www.tds.gb.com

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!