Challenging a civil penalty for an illegal tenant

The Right to Rent Scheme imposes a responsibility on all landlords and their agents to prevent lodgers and occupiers without lawful immigration status from accessing the private rented sector.

All references to ‘landlords’ made within this page therefore include both landlords and agents who have accepted responsibility for complying with the Scheme on behalf of landlords. Occupiers who sublet all or part of their accommodation will also fall within the definition of a ‘landlord’.

‘Lodgers’ are those who take a room within accommodation that they share with their landlord. ‘Occupiers’ are those who are, or will be, occupying a property under a residential tenancy agreement.

Landlords are expected to conduct a ‘Right to Rent’ check on all lodgers and occupiers in one of the three prescribed manners:

1. A manual, in-person right to rent check;
2. A right to rent check using Identity Document Validation Technology via the services of an Identity Service Provider; or
3. A Home Office online right to rent check.

A properly conducted right to rent check is the only way that landlords can establish a statutory excuse against a civil penalty in the event that they are found to be renting to someone without lawful immigration status.

Where a lodger/occupier has a time-limited right to rent, any right to rent check conducted will only provide a time-limited statutory excuse. A landlord will therefore need to conduct follow-up right to rent checks on such individuals to maintain a statutory excuse.

When and how might a civil penalty be imposed?

A landlord will have breached the Right to Rent Scheme if they are found to be letting private residential accommodation to a person who does not have a lawful right to be in the UK.

Following the breach, a landlord may be served with a Referral Notice informing them that consideration of liability for a civil penalty is underway. If the Home Office decides to impose a civil penalty, a landlord will be served with a Civil Penalty Notice.

The Home Office will allow a landlord the opportunity to present further information and provide evidence of a statutory excuse.

If a landlord has correctly conducted a right to rent check, a statutory excuse will be established such that no liability for a civil penalty will arise.

However, if the Home Office considers that a statutory excuse has not been established, consideration will be given to the appropriate level of civil penalty.

What is the civil penalty amount?

There are different civil penalty amounts depending on the type of tenant and whether a landlord has breached the Right to Rent Scheme within the past 3 years. Landlords may be fined as follows:

Are there any possible reductions and discounts?

Unlike civil penalties imposed under other schemes, there are no mitigating factors that will be taken into account to reduce a civil penalty imposed on a landlord.

However, the Right to Rent Scheme operates a Faster Payment Option (FPO) that provides landlords with the opportunity to pay the penalty at a 30% reduction if full payment is made within 21 days. The FPO is only available for landlords who have received a penalty for the first time.

Can I challenge a civil penalty?

Objecting to the penalty

Landlords have 28 days from the due date specified within the Civil Penalty Notice to submit a written objection.

Objections must be submitted along with evidence supporting one or more of the following acceptable grounds for objection:

• The landlord is not liable to pay the penalty (e.g. because a landlord was incorrectly identified as letting property to an illegal renter);
• The landlord has a statutory excuse because a prescribed right to rent check was undertaken; or
• The level of penalty is too high.

Where the level of penalty is too high, this may be because the Home Office has calculated the penalty incorrectly.

A landlord will receive an Objection Outcome Notice from the Home Office regardless of whether the penalty will be cancelled, reduced, or maintained.

Where a landlord objects to the penalty before the deadline specified in the Civil Penalty Notice, they will continue to be eligible for the FPO (see above).

Appealing against the penalty

If a landlord remains liable for a civil penalty even after a written objection has been submitted and determined, an appeal may be made to the County Court.

The appeal must be made within 28 days of either:

• The date specified on the Objection Outcome Notice; or
• The date specified on any new Civil Penalty Notice.

A landlord may only appeal on the same grounds on which they could object to a penalty.

Can I pay by instalments?

A landlord may request permission from the Home Office to pay a civil penalty by instalments over an agreed period, which is usually up to 24 months.

If requesting payment by instalments, full reasons for the inability to pay the full amount in one payment should be given.

Next steps

Our expert Immigration team are well-placed to advise assist both organisations and individuals who have received a civil penalty from the Home Office. We offer strategic support in preparing robust representations and navigating complex immigration enforcement challenges. Our experienced professionals can help review your circumstances to effectively challenge or mitigate penalties.

If you have been issued a civil penalty by the Home Office or need assistance with an ongoing immigration issue, please do not hesitate to contact our Immigration team.