The Association of Residential Letting Agents (ARLA) has warned that rents will rise in the New Year due to a number of rule changes affecting landlords.
David Cox, ARLA managing director, says the various pieces of legislation coming into play in 2016 will result in increased compliance costs for landlords, and as a result push up rents for tenants.
“We urge the Government to re-think its proposals around reducing mortgage interest relief, scrapping the wear and tear allowance and hiking up stamp duty by 3% on buy-to-let properties. Whilst these remain, the Government’s goal of increasing the percentage of people in home ownership is getting further out of reach,” he said.
“The issue of supply and demand in the rental market will be increasingly pushed to its limit with rising demand outstripping supply.”
However, ARLA said it is good news that regulation in the industry will be tightening up in 2016.
The letting agent trade body said it hopes that the provisions of the Housing and Planning Bill – when brought into force – will give enforcing bodies and the courts more teeth in tackling rogue and criminal landlords and agents. This will develop in 2016 to enforce harsher penalties for landlords and unregulated agents that aren’t complying with basic laws.
“The Right to Rent checks introduced in the Immigration Act 2014 will be rolled out nationally from 1 February 2016 following a successful pilot scheme in the West Midlands,” said Cox, “However, we worry that the goodwill established towards the scheme may be tested by the increase in volume, disenfranchising landlords from the process.”
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Right to rent checks. Do we get any training? Or just become criminally liable and fined by being tricked by fraudsters. This certainly will continue to undermine any respect that legitimate landlords working their BUSINESSES have for government and will increase criminality with rogue landlords.
Not even trained border control workers get fined and thrown out of their legitimate profession for making a mistake! That is what to expect colleagues!
Your right James were is the training? My approach is going to be take copies of what the tenant supplies, if it's forged who cares as I will take it in good faith only because I am not trained to spot forgeries
Your right James were is the training? My approach is going to be take copies of what the tenant supplies, if it's forged who cares as I will take it in good faith only because I am not trained to spot forgeries
Further to Gov regulations, local authorities have brought in licensing and fees, which should be mentioned.
Some have introduced additional licensing. This effectively is retrospective, capturing tens of thousands of converted houses (most period), with small no. of self contained flats, supposedly bringing the communal hallways up to 1991 regs, even if properties were converted pre 1991. The additional work from daunting application to negotiations with other owners occupiers, who may have their own views, results in much effort and expense, and is actually unnecessary.
I think the answer is for Landlords to add a surcharge to the Rent and make sure that it is clearly identified as "Local Authority License Fees".
That way, tenants will know who to complain to!
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