The announcement by the government that it will support property owners who are willing to put up refugees fleeing the war in Ukraine does not just apply to owner-occupiers who want to welcome someone into their family home as guests. It is also applicable to landlords who would normally rent a property out.
However, while all this may seem like a compassionate, generous and helpful thing to do, it may be wise for landlords to speak to licensed residential solicitors before proceeding.
Writing for Landlord Zone, property law barrister Christian Fox of Beckett Chambers warned that there could be some legal pitfalls for landlords who want to offer accommodation under the scheme.
He said that unless the refugee is staying in the family home, the housing of them in a rental property could, unwittingly, create a tenancy, with all the legal requirements and obligations that involves.
“It is far better for both parties to understand the way they can extend or terminate the agreement now, rather than risking acrimony or legal action later,” he remarked.
Another issue is the matter of Houses of Multiple Occupancy (HMOs). Mr Fox noted that if several families were allowed to stay in a second home or investment property, “it may give rise to the need to register as an HMO”.
For this reason, it may be wise for landlords to wait for clarity on the rules concerning the scheme and how it would affect these situations. Mr Fox said guidance is needed on these issues and also matters such as whether such lets will breach mortgage terms or insurance policies, or risk “statutory overcrowding offences under the Housing Act 1985”.
These concerns come after the National Residential Landlords Association (NRLA) said it would encourage members to offer accommodation to refugees if they can.
NRLA chief executive Ben Beadle called on the government to “swiftly provides details as to how landlords can easily register properties that might be suitable for those who need homes”.