Apr 15

“Catastrophic” Sub-letting plans

With the Budget announced last week, landlords would have kept a close eye on how measures being introduced this year would affect them.

The Government has outlined plans to change the law regarding sub-letting which could have a significant impact on the private rented sector. These plans will make it illegal for private sector tenancy agreements to include clauses that prevent sub-letting of properties. As a result, landlords will not have full control over who the residents are within their property. According to Landlord Action, this could have a “catastrophic” effect.

Paul Shamplina, Founder of the Landlord Action said: “This appears to have slipped under the radar which, if it goes ahead, will throw up a magnitude of problems in the buy-to-let industry. We have never seen so many sub-letting cases going to court because of unscrupulous tenants trying to cream a profit from a property they have rented.”

Although the plans have not been finalised, the recent Budget announcement has caused a lot of concern within the buy-to-let market as the Government also wants landlords to check the immigration status of their tenants. The question is who would be responsible for this when sub-letting occurs? Additionally, who would be responsible for a property if the tenant sub-letting leaves the house, but the tenant they are sub-letting to stays?

Paul Shamplina voiced further concerns that this could result in overcrowding and many properties may face damage as a consequence. He claimed there should have been a consultation with the rental industry before the Government announced their plans.

Many landlords may choose to leave the private rented sector if the Budget’s plans go ahead.

You can visit the Landlord Action website here


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