Ever mounting issues such as regulation, rent arrears, handling tenant complaints, immigration checks, tax and inland revenue are causing many landlords more stress than ever before, according to a new report.
The research reveals that rent arrears and sorting out repairs to properties are the top two causes of stress, followed by the need to carry out Right to Rent checks.
According to the survey of 500 buy-to-let investors, landlords in areas with a high penetration of immigrants are suffering the most under the new Right to Rent legislation, with many landlords concerned that they are paying over the odds for all the reference checks that they now have to make, to ensure compliance, owed in part to a lack of information and government guidance regarding their legal duties under the new rules.
The research found that 72% of landlords did not understand their obligations under Right to Rent and 44% will only rent to people who have documents that are familiar to them.
Since 1 February, landlords are legally obliged to make sure their tenants have the right to be in the country and report those who do not to the authorities. Landlords found breaking the Right to Rent rules will face punitive fines of up to £3,000.
Jane Morris, managing director of PropertyLetByUs.com commented: “Landlords are under huge pressure with constant new legislation, new mortgage lending rules and increased taxation. Right to Rent is making matters worse. While the government argues this will help crack down on illegal immigrants, it is placing far too much responsibility on the shoulders of landlords.
“Anyone would think the Government dislikes landlords, with what appears to be a relentless attack on the BTL market. The indisputed fact is that landlords provide essential private and social housing for a growing band of tenants, who simply can’t afford to buy. With forecasts from PwC predicting that 7.2m households will be in rented accommodation by 2025, landlords will continue to play a pivotal part in the supply of housing for a growing UK population.
“However, it is not just landlords that are suffering under the Right to Rent legislation. Several charities working in the West Midlands have warned that people they represent were now struggling to find accommodation and some had even become homeless. It is undoubtedly making tenants’ lives even more miserable than they already are - the same can also be said for many landlords.”