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.”

Danger for #landlords buried deep in #Budget2015 – http://t.co/TIU5Gw8cCM

— Mark Alexander (@iAmALandlord) March 19, 2015