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UK landlords concerned about proposed Immigration Bill responsibilities

The Bill proposes that landlords should be responsible for checking the immigration status of prospective tenants but research from the Association of Residential Letting Agents (ARLA) has found that many are concerned about the responsibility involved.

ARLA’s data shows that over half, some 55.2%, of landlords are not confident making the checks suggested and 21.8% did not know if they would be able to make the checks. Only 22.9% said they did feel confident in their ability to conduct the checks.
 
ARLA says that this concern comes despite the fact that the majority of landlords are highly experienced and have entered into the lettings sector as a long term investment. According to ARLA’s latest report, the average landlord is now 54 years old, and owns a record average of almost nine properties. This average figure for the number of properties owned is the highest seen since 2004 when comparative ARLA records began.

Landlords are also holding on to their properties for a record amount of time. The average respondent said they believed the life expectancy of their asset was 19.9 years, exceeding the previous peak of 19.8 years recorded in the fourth quarter of 2012. This longer lifespan of property ownership perhaps accounts for the fact that a significant minority, 16%, of landlords still have properties with energy ratings of F or G.

‘Checking the immigration status of prospective tenants is a sensitive and potentially lengthy task. It’s perhaps not surprising that even experienced landlords are concerned about exercising these new duties,’ said Ian Potter, managing director of ARLA.

‘While landlords recognise a degree of responsibility for this issue, the sheer variety of documentation alone adds a new layer of complexity to the whole process. It is essential that landlords collaborate with the government where possible to ensure the final Immigration Bill is workable when passed,’ he explained.

‘Our research shows the majority of landlords have invested for the long haul, and are therefore well aware of their existing responsibilities. However I would urge anyone who is seeking expert advice on a new tenancy, is re-letting a property, or is entering the sector for the first time to consult with an ARLA agent,’ he added.

‘All ARLA licensed agents must adhere to a strict code of conduct, as well as offering client money protection and redress schemes, which protect all involved parties if things should go wrong,’ he concluded.

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