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

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

10:21 AM, 19th March 2015, About 9 years ago 64

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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


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Comments

Shakeel Ahmad

19:32 PM, 19th March 2015, About 9 years ago

Reply to the comment left by "Jason McClean" at "19/03/2015 - 19:25":

Hi Jason,
The insurance company will come out with a product at a price & than than decide not to pay.

What about the Lenders. If your tenant leaves for what ever reason & your subtenant does not wish to leave. He/she will become your main tenant who you may not have rented the property to in the fist instance.

He/she will get another sub let. As a landlord you will need a flow chart to establish the linage and establish at each stage the legal obligations,

Ian Ringrose

22:24 PM, 19th March 2015, About 9 years ago

Reply to the comment left by "shakeel ahmad" at "19/03/2015 - 19:20":

-> "Another issue if there is claim how would the Landlord establish who is responsible "

Just as it is with a lodger today, the tenant as named on the AST is responsibile, what the lodger does is the tenants problem. No different to a visitor damaging a property, if the tenant let them in, the tenant pays for the damage.

Rod

0:47 AM, 20th March 2015, About 9 years ago

Reply to the comment left by "Ian Ringrose" at "19/03/2015 - 22:24":

You'll be lucky!

Shakeel Ahmad

7:11 AM, 20th March 2015, About 9 years ago

Ian ringrose: Thanks this means every time a sub letter is accepted by the tenant besids not having a say. A Landlord has to re register the deposit this includes the cost of registration time & the silly twenty odd pages to be printed/posted/tenant to sign & return to the landlord.

Steve Masters

7:52 AM, 20th March 2015, About 9 years ago

This is a nice idea and we do need to solve the housing problem but the only way this will work is if the whole mish-mash of existing law is re-written and the right to sub let is threaded in very VERY carefully. That will never happen, therefor it will not work.

What will happen is that lenders, insurers, property owners and every body involved in proprty letting will withdraw or make their services hugely more expensive. This void will be filled by the unscrupulous who are not bound by the laws that tie the hands of the responcible.

Surely a better policy to solve the housing problem is to help BUILD MORE HOUSES.

Michael Barnes

8:20 AM, 20th March 2015, About 9 years ago

Reply to the comment left by "Ian Ringrose" at "19/03/2015 - 17:00":

Good to hear a voice of reason.

Joe Bloggs

8:43 AM, 20th March 2015, About 9 years ago

Reply to the comment left by "Steve Masters" at "20/03/2015 - 07:52":

'right to sub let'
WHERE DOES THE OP STATE THAT?

Steve Masters

8:47 AM, 20th March 2015, About 9 years ago

From OP- "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"

Joe Bloggs

8:52 AM, 20th March 2015, About 9 years ago

Reply to the comment left by "Steve Masters" at "20/03/2015 - 08:47":

none of that states ‘right to sub let’.

what it does states is that it is to PREVENT the use of clauses ie prohibiting sub letting. that is completely different to a right to sub let. im repeating my yesterdays post, posted that about a zillion posts earlier.

Lynette Morris

8:58 AM, 20th March 2015, About 9 years ago

When private no longer means private I wonder if 'sharing' is to be interpreted as the new communism? The manner is which the proposed legislation was sneaked is in cynical. There seems to be an attitude that landlords are some sort of elite club of wealthy people to whom rental incomes come as easily as picking it off a "money tree". The obvious sheer ignorance of what is involved in hard work and effort plus the landlord's preparedness to invest, is breathtaking. This in a kneejerk reaction to solve a problem which has been growing on the horizon for years. More importantly it is a BREACH OF PERSONAL FREEDOM and puts democracy 'where the sun don't shine'!

There a great pressure group called 38 DEGREES. They have over a million supporters and they take on and petition the government over this type of unjust interference. I would love it if we could get them to take this one on board. They have extremely successful on other issues. Direct public action. Any thoughts please?

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