Their comments come following the release of Government proposals aimed at regulating the property rental market. Under the new scheme, landlords will need to join a national register and pay an annual licence fee of £50 to cover administration costs.
But Landlord Assist, believes there is already sufficient legislation in place to ensure standards within the rented sector are upheld, and further legislation will only deter new landlords from entering the market.
Currently a landlord purchasing a property will need to undertake a gas safety inspection at an approximate cost of £75, an electrical safety inspection costing £125, an energy performance certificate at £100, incur a letting agent’s tenant finding fee of nearly £500, pay inventory charges approaching £100 and lodge the deposit at an approximate cost of £30.
Some landlords will also require an HMO (Houses in Multiple Occupation) licence at an approximate cost of £800 and a fire certificate at an approximate cost of £400, and all this before the landlord receives any rent from the tenant.
This is a staggering £2,130 and yet landlords are potentially going to be subjected to more fees! That’s not to mention the ongoing obligations for repair and maintenance and the tax liability on the income generated.
Graham Kinnear, MD of Landlord Assist feels strongly about the situation. He says: “Landlords are already facing reams of legislation in a challenging economic climate, further registration schemes will only deter people from entering the market.
“More should be done to encourage landlords to enter and remain in the market. It is important for tenant choice and mobility that there is plenty supply of rented accommodation.”
Stephen Parry, Commercial Director of Landlord Assist agrees: “Providing there is a suitable quantity of accommodation available then market forces will dictate the sector as tenants will no longer be forced to take sub standard accommodation. This in itself will weed out poor quality landlords with poor accommodation without the need for further government intervention.”
