Monthly Archives: April 2021

Right to rent: Your tenants, their immigration status and new rules for EU nationals and higher Council Tax charges on empty properties

Right to rent

A reminder; don’t forget, wherever your tenant is from, the government’s ‘right to rent’ rules mean that landlords have a legal responsibility to hold documentary evidence documentary evidence that their tenant is legally entitled to live in the UK, for all periods of that tenancy, not just at its beginning.

If a landlord does not comply they can face substantial fines and potentially imprisonment. Further, the government has been clear that the COVID-19 pandemic does not lessen a landlord’s responsibility to stick to the rules. However, it has issued new guidance on how you can carry out the necessary checks on your tenants in a COVID safe manner. Please see https://www.gov.uk/guidance/coronavirus-covid-19-landlord-right-to-rent-checks?utm_medium=email&utm_campaign=govuk-notifications&utm_source=0033283e-2afe-4f97-9652-99150b54e5ae&utm_content=daily

Landlords should also be aware that the rules for citizens of European Union countries are now changing which could have an impact on their tenant’s right to rent status. BREXIT means that people from EU member nations no longer have an automatic right to reside in the UK. Anyone who is an EU national and who wants to reside in the UK must now ensure that they have registered correctly under the EU Settlement Scheme.  More details are available here. https://www.gov.uk/settled-status-eu-citizens-families

Although this is the tenant’s responsibility and not the landlords – it will become the landlord’s problem if a tenant fails to register correctly and no longer has a legal right to live here. If you become aware that a tenant you let your property to lawfully is no longer entitled to be in the UK – don’t ignore the situation. Please refer to this government guide on what action you should take

Empty properties and Council Tax

Every local authority has long-term empty properties in its area. That can be a problem for everyone: as it affects the community as empty buildings often attract anti-social behaviour; it affects the immediate neighbours, as the street’s appearance is affected or weather damage spreads next-door and the council who will want every potential home giving someone a roof.

Owners can face serious financial consequences. Houses need people in them. Occupiers guard against neglect, the elements and damage from problems like vandalism. Leave a house empty, especially in winter and its state of repair will deteriorate, sometimes badly. The longer you leave it – the bigger the risks. Empty homes are also a terrible waste of an essential resource, both for people who need homes and for the owners too who are denying themselves a source of income or a substantial amount of capital.

A further disincentive to owners from keeping a property empty is the enhanced Council Tax charges they are liable for. From April 2021, these have been adjusted again as follows.

  Additional amount on top of normal empty chargeTotal Council Tax charge
1 April 2019Two or more years 100% 200%
1 April 2020Five or more years 200% 300%
1 April 2021Ten or more years 300% 400%

You can find full information here

https://www.sandwell.gov.uk/info/200207/council_tax/4270/paying_council_tax_on_empty_properties

These additional charges should act as further encouragement for an owner to make the best use of their asset and provide a home for someone who needs it.

Oliver