17th
Aug 2023
A reputable property law firm warns landlords they could be forced into insolvency if they have to face the Home Office’s massively increased fines.
The new set of fines for agents or landlords found to be renting out their properties to illegal migrants will be forced to pay up to £5,000 per lodger originally just £80, and £10,000 per occupier hiked up from £1,000.
However if found repeatedly breaching the rules then it could cost landlords as much as £10,000 per lodger increased from £500 and up to £20,000 per tenant from £3,000.
It is predicted that the new set of fines will come into force next year.
Commenting on the increased fines a partner of a law firm says: "This announcement is a further nail in the coffin for amateur landlords. The expectation seems to be that landlords should somehow become a branch of the Border Force.
“The increase of penalties by 1000 per cent, up to £10,000 per occupier for a first infringement of these rules and up to £20,000 for a repeat offence (an increase of 667 per cent), will be likely to frighten off many good landlords.
"The obligations have not changed but the penalty for getting it wrong have now become more than a headache or a slap across the wrist, but have moved to the territory of potential bankruptcy for many landlords."
"In these circumstances a simple error by an unwitting landlord allowing a family of four to take a tenancy when their immigration visas have just expired could arguably lead to fines for the landlord of up to £40,000.
"Landlords, especially those with four or fewer properties and which make up over 50% of the total number of rented flats in the private rented sector, are not equipped or trained to carry out the role of a Border Force agent. The additional burdens on landlords brought in by the Government have already driven many from the market and this measure is likely to see many more follow suit."
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