Homes for Ukraine scheme: what's the latest?
The Homes for Ukraine sponsorship scheme saw a huge amount of interest from households looking to host those fleeing the conflict, when it launched in March.
The UK Government’s FAQs about the scheme are updated regularly and it’s best to keep an eye on the GOV.UK page for the latest information if you or your tenants are interested in participating. You can also register for email notifications when the page is updated.
We continue to get a high number of calls from landlords enquiring about the scheme, and how it works for the private rented sector. As the scheme remains in its early stages, there are still a number of questions to be fully answered about the implications for landlords. We are in ongoing conversations with the relevant government departments to get more clarity.
If you or your tenant would like to be a sponsor, here are some key things you need to consider.
No rent can be charged…
The UK Government is clear that no rent can be charged by sponsors to those they are hosting. This is intended to ensure that an assured shorthold tenancy is not created and that it is clear that those who are hosted are guests. At the same time, they are requiring a minimum commitment of six months’ hosting for any UK households participating in the scheme.
Households hosting refugees will be eligible for an optional £350 per month ‘thank you payment’ from the Government, for a maximum of 12 months. This is provided at a flat rate per property, is not rent, will be tax-free, and will not affect benefit entitlements or any council tax discounts. It will be paid in arrears.
… and no AST should be created
The Government has published model contracts which can be used to set out the expectations for the sponsorship. An Excluded Licence Agreement is advised where guests are sharing accommodation with the host – for example, communal areas, kitchen and bathrooms. Where guests are being hosted in self-contained accommodation – such as a holiday let – you are advised to use an Excluded Tenancy Agreement. It is not a requirement to use these, but it may help clarify the terms of the hosting and be helpful for landlords to evidence the nature of the arrangement.
Because the refugees are hosted as guests, the Government has assured us there is no requirement to evidence the Right to Rent.
Sponsors are asked to give at least two months’ notice if they want to end the sponsorship. If the sponsorship breaks down before six months, they should contact the local council.
You need to check with your insurer and mortgage lender
The Government has been working with lenders and insurers to agree ways to ease the process, but as things currently stand, you are advised to speak to your insurer and your lender before entering into any sponsorship arrangement. You may be breaching the terms of your policy or mortgage agreement if you do not get their permission.
Properties will be inspected before guests are placed
Local authorities are responsible for undertaking property inspections to ensure they are suitable and meet the appropriate standards for health and safety, as well as overcrowding. These are set out in the Government FAQs. These requirements will be familiar to private landlords. In addition, landlords must ensure that their properties meet the regulations for the sector.
Furthermore, councils will undertake Disclosure and Barring Service (DBS) checks on all occupants of the household aged 16 and over, and further checks if children or vulnerable adults are hosted.
HMOs remain a grey area
Guidance for councils sets out that the Government expects that properties where neither sponsors nor guests are paying rent will not be considered as houses in multiple occupation (HMOs).
But there is less clarity where the sponsor is already paying rent on the property, as will be the case if your tenant wants to be a host.
An additional person or persons living in the property could mean that the property becomes licensable, under either mandatory HMO licensing (with five or more people living in the property, comprising two or more households) or if there is an additional licensing scheme – which covers smaller HMOs – in place in the area.
It’s advisable that landlords consider carefully whether giving consent to their tenants to act as hosts would make their properties licensable. NRLA members can use Kamma to check whether their property would require a licence.
Ukrainians entering the UK via the scheme are eligible for benefits
Ukrainians entering the UK as part of the scheme will be eligible for benefits, including the housing element of Universal Credit should they decide they want to rent rather than remain in hosted accommodation. They will also be given a £200 initial payment by local councils to cover subsistence before benefits kick in.
All Ukrainians entering through the scheme will also be eligible to work in the UK.
Are you hosting refugees in your rented properties? We are looking for case studies of landlords involved in either the Homes for Ukraine scheme or the Afghan resettlement scheme to support our campaigns. Contact us at [email protected] if you have a story to share.
