New "right to rent rules": landlords could face criminal sanctions

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

The new “right to rent” rules under the Immigration Act 2016 are due to come into force on 1 December 2016. The aim of the new rules is to help the Government deal with those landlords who continue to let properties to illegal immigrants. In summary:

• there will be criminal sanctions for landlords (and their agents) that fail to comply with their “right to rent” obligations;
• landlords will be able to terminate a residential tenancy where the Secretary of State has served notice stating that the occupiers are disqualified from occupying the premises as a result of their immigration status;
• the mandatory grounds for possession of residential properties in the Housing Act 1988 will be amended to include a new ground relating to tenants or adult occupiers who are disqualified (i.e. they do not have the right to enter or remain in the UK).

We now also have draft Guidance from the Home Office about a defence for landlords. In summary a landlord will have a defence if:

• it can show that proper right to rent checks have been carried out in accordance with Home Office guidance; and
• if it is apparent someone is in the property who is disqualified, reasonable steps are taken to terminate the tenancy (within a reasonable period).

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