In a move that has sparked heated debate across the property management sector, the government's proposal to drastically increase fines for property managers who breach existing Right to Rent check laws has drawn criticism from both landlords and letting agents.
The backlash comes as the National Residential Landlords Association (NRLA) and Propertymark, key players in the industry, label the measure a mere 'gimmick,' asserting that many landlords and agents are already abiding by their responsibilities under the Right to Rent legislation.
Ben Beadle expressed his concerns.
NRLA Chief Executive, Ben Beadle, expressed his concerns, saying that the proposed fines fail to address the underlying issue of immigration and could inadvertently hinder the housing prospects of some British nationals.
Beadle voiced his opinion to The Telegraph, stating, "Piling pressure on landlords would merely fail to deal with the root cause of immigration and make it more difficult for poorer British nationals to find housing because they are more likely not to have passports or driving licences, they can use to prove their citizenship status."
Under the government's plan, the fines for landlords would witness a substantial increase.
For a first breach, the penalties would surge from £80 per lodger and £1,000 per occupier to a substantial £5,000 per lodger and £10,000 per occupier.
In the case of repeat breaches, the fines could be as high as £10,000 per lodger and £20,000 per occupier, as compared to the previous penalties of £500 and £3,000, respectively. These steeper fines are set to be enforced from the outset of 2024.
Beadle criticized the government's approach, emphasizing that the focus should be on addressing illegal migration rather than placing the burden on landlords.
Beadle said: "The announcement is little more than a gimmick. There’s no substance behind it… Rather than doing something directly, you’re relying effectively on a small army of landlords and letting agents to do your dirty work for you. And rather than bring them along with you on the journey, you’re saying that landlords and letting agents have a problem."
Beadle also raised concerns that the heightened fines would likely be perceived by landlords yet another assault by the government on their sector. He pointed out the relatively low level of fines issued – averaging only 80 per year – as evidence that landlords themselves are not the primary source of the problem.
As stakeholders and government officials continue to clash over the proposed fines, it remains to be seen whether these measures will bring about the intended changes or if they will further strain the already complex relationship between property managers and the government.
With the implementation of the new fines scheduled for 2024, the debate surrounding their effectiveness and fairness is set to continue, keeping the spotlight firmly fixed on the broader issues of immigration and housing access.
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