Property investors need to be aware that as early as October 2014, residential landlords will be responsible for checking the immigration status of all prospective tenants before renting out their property. This is to ascertain that the tenant has permission to be in the UK and follows the Immigration Act, which became law on 14 May 2014.
Property owners renting out their properties may face fines of up to £3,000; in extreme cases they could even face imprisonment if they don't comply with the new legislation. Clearly this could result in extended void periods while any eviction and legal action takes place, thus impacting the landlord's potential income from a property.
Although the new Immigration Act came into force in May, the full roll out of the new legislative measures will be done in stages. Details of where and how an initial pilot scheme will be put into action are as yet unconfirmed, but we believe it will be early October.