industry news
ARLA event sees speakers reacting to Brexit with concern and optimism
the Association of Residential Letting Agents (ARLA) hosted its regional Brighton Expo on 29 June to offer landlords and lettings agents legal and tax advice. With Brexit stirring up uncertainty, speakers at
A
the event agreed there was no way of knowing how the sector would react, but for some representatives there was cause for optimism. Jonathan Chapman, sales director of online
repair and maintenance service providers Fixflo commented: “What the EU referendum outcome has ultimately led to is an amount of uncertainty. But while there’s a threat, there’s also opportunity.” He added, “Housebuilders’ shares have been hit and they may stop building some of the homes they wanted to. I also read in the press that 1.7 million people who were considering to sell their homes were now putting these plans on hold” (quoting Plentific research carried out by Opinium). He concluded, “Logically speaking, if it turns
out that fewer people are buying or moving to new properties, this could mean that people are going to be renting for longer.” Speakers at the event also highlighted the
importance of the obligatory right to rent checks in terms of immigration and how the related law will evolve in the next six months. David Cox, managing director at ARLA,
explained: “What the Immigration Act 2014 essentially did was enshrine in law the best
s Britain’s vote to leave the European Union began to cause severe repercussions across the UK and Europe,
practices related to right to rent checks.” The new Immigration Act 2016, set to come into force in the next six months, will add heftier penalties and grant landlords the right to evict illegal occupants. Delegates heard that EU/EEA citizens retain
their indefinite right to live and rent in the UK while Britain remains part of the EU – but this may change depending on the outcome of prospective Brexit negotiations. While an EU passport/ ID card currently
suffices and no further legal checks are required for tenants from the EU, Cox warned that various combinations of documents and a “myriad of visas” may have to be checked before accommodating immigrants. He said landlords could grant tenancy to visa
holders “as long as they have at least 24 hours left on their visa” however, adding: ‘As long as it expires tomorrow or beyond, you are fine – you can grant tenancy of any length you want.” The ARLA managing director highlighted
landlords had to conduct rechecks within 28 days of expiry of the visa or otherwise they could face hefty fines for housing illegal immigrants. Cox warned the fixed penalties of up to
£3,000 for housing illegal immigrants will be replaced with an unlimited fine or up to five years in prison. The Immigration Act 2016 will also create an ‘expectation’ for regaining possesion of the property so landlords will be able to evict illegal occupants within 28 days of a notice served by the Secretary of State.
“Logically speaking, if it turns out that fewer people are buying or moving to new properties as a result of Brexit, this could mean that people are going to be renting for longer” – Jonathan Chapman, Fixflo
David Cox
Industry views on Brexit
“It is unlikely that we will see significant policy changes straight away…in the meantime we must not lose focus on ensuring we continue to do our part in addressing our national housing crisis.” – Terrie Alafat, Chartered Institute of Housing
“We recognise the uncertainty that this result will bring to the sector and we are working with our housing association members to support them to continue delivering the homes and services this country needs. Whatever happens there is still a housing crisis and we remain committed to ending it.” – David Orr, National Housing Federation
“Let’s just take a long, deep, calm breath. Leaving the EU is completely unknown territory, and jumping to conclusions isn’t going to help anyone.
“Any knee-jerk reaction will have a real impact on our members’ mortgages, tenants’ rents and overall confidence in the market. So we would urge the policy as regards to interest rates should be to continue David Cameron’s advice of ‘steady as she goes.’” – Richard Lambert, National Landlords Association
12 | HMM July 2016 |
www.housingmmonline.co.uk
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