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Buy to let landlords: are you ready for Brexit and the end of free movement?

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Buy to let landlords may think that they have enough going on with Covid-19 related concerns about the valuation of their buy to let property portfolios, the availability of buy to let mortgage finance and re-mortgage options as well as rent arrears and possession proceedings because of the effect of Covid-19 on their tenants. However, landlord and tenant solicitors are advising buy to let landlords that they should ensure that they are ready for Brexit and the end of free movement of EU citizens.

Online landlord and tenant solicitors

For advice on landlord and tenant law and right to rent provisions call the landlord and tenant team at OTS Solicitors on 0203 959 9123 or complete our online enquiry form. Appointments are available through video conferencing, Skype or telephone.

How will the end of free movement affect landlords?

The UK’s exit from the EU will be completed on the 1st January 2021 when the free movement of EU citizens between the EU and the UK will cease. On the same date the UK government intends to introduce a new points based Immigration system. One of the key aspects of the new points based Immigration system is that Immigration control and the requirements for visas to enter, live and work in the UK will apply equally to non-EEA nationals and EU citizens unless the EU national has:

If a prospective tenant who is an EU citizen doesn’t fall into any of the above categories then they will be subject to the same Immigration controls and visa eligibility criteria as non-EEA nationals. The visa applicant will need to secure at least seventy points under the new points based Immigration system to secure a work visa.

The end of free movement may affect buy to let landlords in two ways:

  • The government’s stated intention is to reduce the overall number of people entering the UK from overseas to live and work. The government isn’t intending to introduce a visa for lower skilled workers. As EU citizens coming to the UK after December 2020 will be subject to immigration control and won't be able to secure a work visa unless they qualify for a skilled worker visa this may affect the number of overseas people looking to rent and potentially affect the lower end of the rental market

  • landlords are under a legal obligation to carry out right to rent checks on all their prospective tenants as part of what is referred to as the Immigration hostile environment policy. The right to rent checks are currently the subject of a legal challenge but if they remain a legal requirement imposed on landlords the task of conducting them and ensuring sight of the right documents will become more complicated when so many EU citizens living in the UK will be present on work visas or business visas or family visas or alternatively will have secured settled status under the EU Settlement Scheme.

Finally, buy to let landlords should be aware that if they are an EU national the end of free movement will affect them in the same way as their EU citizen tenants. It is therefore vital that they apply for settled status under the EU Settlement Scheme as entrepreneurial property business based visas aren’t really catered for in the planned new points based Immigration system. It also isn’t in a landlord’s interests to be subject to the hassle and bureaucracy of visa applications and complying with visa requirements and Immigration controls when there is the solution of applying for settled status or pre-settled status under the EU Settlement Scheme.

Online landlord and tenant solicitors

For advice on the latest legal developments in landlord and tenant law or if you are unsure of your rights as either a landlord or tenant or have questions about any aspect of landlord and tenant law call the landlord and tenant team at OTS Solicitors on 0203 959 9123 or complete our online enquiry form. Appointments are available through video conferencing, Skype or by telephone.

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