Know your tenants! Right to rent checks mandatory from 1st February 2016

Following the correct referencing procedure has always been very important in ensuring you have the most suitable tenants in your property. However, from 1st February it will be even more so. This is because under new legislation, set to be introduced, landlords who fail to check a potential tenant’s “right to rent” status could face a penalty of up to £3000. The "Right to Rent" checks were introduced as part of the Immigration Act 2014 and have been met with some controversy.

We commission a reference agency to conduct referencing on our behalf and we personally carry out a complete check of identity documentation.

House prices and the rental population set to increase by 2025

According to recent research conducted on behalf of the National Association of Estate Agents (NAEA), house prices are set to increase by 50% in the next decade. However, a report written by the Centre of Economics and Business Research, warns that home ownership amongst the working population, will decrease from 62% to 55%.

NAEA Managing Director Mark Hayward sums up it up when he says “Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be a distant dream for many. Increased rental costs will also make it more difficult for current renters to save for a house deposit as much of their income will be eaten up in rent”.

The association has mooted a number of possible solutions, such as incentivising the construction industry to offer more apprenticeships and training programmes and exempting pensioners wishing to downsize from paying stamp duty.