Homes for Ukraine - Landlords Guidance

Government websites are under strain as tens of thousands of well-wishers rush with open arms to welcome refugees from the war in Ukraine under the Homes for Ukraine scheme. 

The scale of the problem is enormous - around 3 million refugees are on the move seeking safety from the indiscriminate Russian military onslaught. 

Many are safe thanks to a magnificent response from communities in Poland, Moldova, Romania and Hungary - but in the long term, they must move further west in Europe. But legal experts are just as quick to point out that the Homes for Ukraine program could lead to legal problems for unwary landlords. 

Phase one of the program has launched for sponsoring landlords to nominate a named Ukraine family or individual to come to the UK to stay in their home or a buy-to-let property or second home. 

The scheme will also let landlords bring Ukrainians or their families to the UK despite having no personal ties.

Secretary of State for Levelling Up, Housing and Communities Michael Gove said:  “The courage shown by the Ukrainian people in the face of the devastation caused by the invasion of their great country is nothing short of remarkable. 

“The United Kingdom has a long and proud history of helping others in their hour of need, and our new Homes for Ukraine scheme offers a lifeline to those who have been forced to flee. 

“I’m asking people across our country who can provide a home for Ukrainians to consider being sponsors.”

What is the Homes for Ukraine scheme?

Sponsors can give homes or a spare room rent-free for at least six months - or longer if they can. 

The government will pay the property renter or owner £350 a month. Anyone who can show they are a Ukraine national or their immediate family member on January 1, 2022, can come to Britain under the scheme. 

Ukrainians coming to the UK can stay up to three years, apply for benefits, schooling, healthcare, and help learn English. 

The scheme opens fully on Friday, March 18. Go to the Homes for Ukraine website to register an interest or as a sponsor.

What sort of homes are needed?

The accommodation type depends on how many people will live there - from a spare room in your home to self-contained homes for families. Accommodation must be fit to live in and large enough for the number of people. 

No rent is paid, and the £350 a month offered towards housing costs is only payable once for a property and lasts for 12 months. 

Anyone offering accommodation can expect an inspection and eligibility checks. Hosts are only expected to offer accommodation but can provide meals and living expenses if they wish, but these payments are not likely.

Legal problems for landlords

Property barrister Christian Fox explains that offering accommodation other than a room in the main home can be a tenancy.

“It is far better for both parties to understand how they can extend or terminate the agreement now, rather than risking acrimony or legal action later,” he said. 

“If the owner of a second home or investment property were to allow several families to stay in a property, it may give rise to the need to register as an HMO. 

“While we might hope that local authorities would be sympathetic unless the government scheme allows exemption, then at the very least licensing will need to be investigated with the local council and their views sought.”

Shared house licensing is not the only legal issue landlords and Ukraine refugees face. Properties may need expensive make-overs to comply with fire and health and safety legislation.

HMO

If you are to offer accommodation in your own home, becoming an HMO shouldn't be an issue because at least one of the households must pay rent to be an HMO (assuming the "thank you payment" is not classed as rent). 

However, if your tenant asks for consent, it would be excellent if the landlord would give consent, but care may need to be taken. Where there are three or more total occupiers (including children) and not all are related, it will be an HMO. Depending on the number of occupiers and your local authority area, this may trigger licensing. 

For example, if you have a single tenant in a two-bedroom flat with a spare room, and they allowed a mother and child to lodge, this would be an HMO. 

Being an HMO isn't necessarily disastrous because it's possible you already comply with the management regulations for an HMO (links to England). But, you would need to check with your local authority to see if that triggers licensing.

Council Tax v business rates

Landlords can switch to paying business rates rather than council tax if a property is a furnished holiday let. 

To qualify for rates and other tax perks, the home must pass availability and occupancy tests that can't be met if the property is handed over to refugees from Ukraine.

Home insurance

Sharing your main home will likely invalidate standard home insurance policies that do not allow unrelated third parties to share a home with the owner.

Rent-a-room

Handing a room in a landlord's home used by lodgers to the Homes for Ukraine scheme means homeowners may lose the £7,500 a year tax break as the Homes for Ukraine payment is instead of rent.

Mortgage terms

Landlords may break the terms of their mortgage by allowing refugees from Ukraine to move into a home rent-free.

Repairs and maintenance

The landlord will typically be responsible for property repairs or maintenance.

Health and safety

For self-contained homes, gas, electricity and other safety certificates will generally be required. If sharing a room in your main home, a gas safety record will be required.

Updated Guidance

Yesterday (April 13 2022), further guidance was released to confirm what documentation can be accepted. 

A Ukrainian national can enter the UK with a valid passport stamped on arrival and permit entry to work and rent for six months. 

A letting agent or landlord can accept their stamped passport as a right to rent check, valid for twelve months. 

When an applicant/ tenant has a time-limited document, the next time a check is required is either at twelve months or the expiry of the visa, whichever date is longer.

 The Ukrainian national must apply for a biometric permit within six months via the Home Office. If successful, they will be granted the right to remain for up to three years and can provide a share code for further right to rent checks.

If they give this along with their date of birth to a landlord/ agent, the landlord or agent will be able to check the applicants' right to rent status directly via the Home Office. 

Those without a valid passport need to provide their biometric information at a visa application centre, giving them entry clearance with a Form for affixing the visa. They will then be able to collect their biometric permit, which can be used via the Home Office checking service. 

Please see here for guidance (further updated within statutory guidance).

More information

Nearly legal has a helpful article with more detail.