Budget 2015 – Government intend to make it easier to sublet!

by Property 118

10:21 AM, 19th March 2015
About 4 years ago

Budget 2015 – Government intend to make it easier to sublet!

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Budget 2015 – Government intend to make it easier to sublet!

Almost buried on page 51 of the Budget Red Book the Chancellor gives a very brief outline of his intention to prevent the Private Rental Sector from stopping tenants being able to sublet.

This document states:

“Support for the sharing economy 1.193

The government wants to ensure that Britain is the global centre for the sharing economy, enabling individuals and businesses to make the most of their assets, resources, time and skills through a range of online platforms. This Budget therefore announces a comprehensive package of measures that will break down barriers, create opportunities for sharing, and unlock the potential of this dynamic and growing area. Building on the recommendations of the independent review of the sharing economy, the government will:

Make it easier for individuals to sub-let a room through its intention to legislate to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis, and consider extending this prohibition to statutory periodic tenancies.”

Link to the full document

Alan Ward, the RLA chairman said:

“The measures on sub-letting are a nightmare in the making and smack of ‘back of the fag packet’ policy making.

Key questions remained unanswered such as who will be responsible for a property if the tenant sub-letting leaves the house but the tenant they are sub-letting to stays? Similarly, given the Government wants landlords to check the immigration status of their tenants, who would be responsible for checking the status where sub-letting occurs?

Whilst the RLA awaits further detail on this measure, it is difficult to see landlords supporting it.”

budget 2015



Comments

Mark Alexander

10:36 AM, 19th March 2015
About 4 years ago

I have invited our insurance partner (Jason McClean) to comment on this because most insurers have a problem with subletting.
.

Monty Bodkin

11:24 AM, 19th March 2015
About 4 years ago

The measures on sub-letting are a nightmare in the making and smack of ‘back of the fag packet’ policy making.

Couldn't agree more.

Consider if you let your 2 bed semi out to a respectable couple. They then put an ad on a site like Airbnb, sub-let the 2 double rooms to transient families and kip in the lounge.

The extra damage caused would be horrendous, far higher than the deposit- even if excessive fair wear and tear could be proved beyond reasonable doubt.

Not to mention creating a de facto overcrowded HMO, annoying the neighbours, parking problems, breaching mortgage conditions, leasehold conditions etc.

Doubtless the deregulation bill will be amended to prevent landlords carrying out section 21 'revenge' eviction in such circumstances.

Jay Jay

13:34 PM, 19th March 2015
About 4 years ago

As a private landlord with three properties I am absolutely astonished that we are now and truly under a nanny state, so now we have the indignity of a government that now wishes to intrude into the private landlord sector with legislation to enable tenants to sub-let our private property for the sharing economy. Well for my part I do not want to share my rented property with someone that is not my tenant, I believe it is an absolute disgrace to even suggest such a move on the private landlord sector and trust that there will be common sense before this is put on the books. Housing is short we know and the planning system is a nightmare even with so called relaxed rules, I know my son is a builder and local planning departments are a law unto themselves whatever government might say. So to fill the housing shortage we the private landlord/s are to be told how we run our private affairs, well another good reason not to vote for this party at the next election that talks about free speech and freedom and enterprise not much enterprise in this budgets (hidden) statement. I will be lobbing my MP and hope that all private landlords do the same. We need without doubt a `No Sub-Letting Campaign` for private landlords I rest my case.

Gary Nock

14:10 PM, 19th March 2015
About 4 years ago

Oh my god!

Where did this lunacy come from?

So we as landlords conduct due diligence to ensure we comply with insurance clauses on only renting to "professional tenants
and Mortgage Conditions on lets only under ASTs. Conduct immigration checks. Many of us are regulated through PRS, DPS, selective licensing.

And then our tenants can rent our properties to anyone without any control or sanction whatsoever.

Madness.

Alan Rogers

14:24 PM, 19th March 2015
About 4 years ago

I thought we needed to clear up one legal minefield with deposits, this is going to make our concerns regarding tenancy deposit issues pale into insignificance!

While the government wants this; mortgage companies don't allow this, insurance companies don't allow this, who is responsible for the incoming immigration checks etc.?

Another well though policy by our wonderful government !!

Mike W

14:26 PM, 19th March 2015
About 4 years ago

I think I can see some landlords emailing their MPs expressing their concern about this ..... Where did this "review" come from?

Building on the recommendations of the independent review of the sharing economy,

Joe Bloggs

14:32 PM, 19th March 2015
About 4 years ago

i think/hope you are misreading the proposal:
'..prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting'

the words 'rule out' need to be emphasised. i therefore think its a ban on total prohibition, but landlords will still be able to veto sub tenants if they are unsuitable.

Barry Fitzpatrick

14:33 PM, 19th March 2015
About 4 years ago

Could some wise owl draft a suitable letter to send to our local MPs, covering all the issues?

With a general comment for the Government to stop meddling in the PRS which they know nothing about.

Barry Fitzpatrick

14:33 PM, 19th March 2015
About 4 years ago

If this did become Law then presumably the relevant clauses in Lenders mortgage terms, insurance policies, etc would be illegal and would also have to be removed.

Andy 46

15:03 PM, 19th March 2015
About 4 years ago

Surely this opens up a whole new debate about HMO's also????

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