Failure to comply with the Right to Rent obligations under the Immigration Act 2014 can lead to serious consequences for landlords and lettings agents. The penalties vary depending on the severity and frequency of the breach and are intended to ensure compliance with immigration controls. 

The penalties for non-compliance are:

• A civil penalty for £5,000 per lodger and £10,000 per occupier for the first breach;
• A civil penalty of £10,000 and £20,000 per occupier for subsequent breaches

These fines are imposed by the Home Office through a civil penalty notice and can be enforces through civil recovery proceedings if not paid.

In more serious cases, particularly where landlords or agents are found to have knowingly rented to an individual without lawful immigration status, or where they had reasonable cause to believe this was the case, they may face criminal prosecution. Under Section 33A of the Immigration Act 2016, this offence is punishable by an unlimited fine and/or a custodial sentence of up to 5 years' imprisonment.

Landlords should ensure the comply with Right to Rent checks and can refer to Guidance Note for Right to Rent Checks. Lettings agents can refer to Guidance Note for Right to Rent Checks.