The connection between rising volumes of red tape in the private rental sector and landlords quitting as a consequence appears to have been proven in one part of the UK.
ARLA Propertymark says more than twice as many landlords in Wales are selling their buy to let units when compared with the rest of the UK - on average, five per letting agency branch in the Principality, compared to two per branch in the rest of the UK.
Propertymark’s chief executive Nathan Emerson insists this is down to regulatory changes affecting landlords.
“Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords.
“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.
“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”
The Renting Homes (Wales) Act will come into force from July 15 and this increase the Section 21 Notice period to six months, with no notice served at all until six months into the contract.
This means that tenants have a right to live in the rental property for at least a year, irrespective of their payment record or behaviour.
The Act will replace assured shorthold tenancies with a ‘standard occupation contract’ for private landlords, along with minimum repair standards set out in the contract.
Landlords also have to send tenants a written statement setting out the rights and responsibilities of both the landlord and contract holder - as the tenant - will be called within 14 days of moving in.
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"irrespective of their payment record"
How is that linked to the S21 changes?
It means that if they "forget" to pay rent at all in the first 12 months, they can't be evicted using a S21 notice
Who would have guessed ? smh
Just wait until EPC C is announced.
Yes, waiting for that to be implemented.
I am seriously thinking about getting out altogether, but I will have to replace the income with something else and both will take time, which I am running out of, unfortunately.
Red tape leading LL’s quitting fact.
What’s the point being made here. This shows their disgraceful anti landlords Policy is having the desired affect.
Didn’t understand this other nonsense about what a LL must inform Tenants, what have we being doing for years it called Tenancy Agreement that sets out Landlord & Tenants responsibilities.
If I were a Welsh landlord I would have thrown the towel in by now, what's the point ?
Keep harassing landlords. Karma is a real b1tch.
I thought the idea of all this red tape was to help the local people. So if all the LL quit, does that mean you can only buy a property but can't rent one, or the few that might be left to rent will be able to charge high rents due to no competition. So what happens to the locals that can't buy a property? That doesn't seem fair to the locals.
And as a LL, I can then demand very high rents.
I love that.
Trouble is Theodor, here in Wales, we could attempt to charge higher rents, but nobody would be able to afford them.
They are determined to collapse the economy with those Treasonable Policy’s but there is no need to try so hard it will happen.
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