One of the main causes of stress and worry for the UK’s landlords has been revealed as the controversial ‘Right to Rent scheme’, says a new study.
In a report from letting agents PropertyLetByUs, they say that the legislation causes stress for one in three buy to let landlords and for those who have properties in areas with high numbers of immigrants, the situation is acute.
Indeed, landlords in London, the West Midlands, the South East, the North West and in the East of England are said to be those suffering the most with the new law.
The next stressful problem for landlords is dealing with tax issues with HM Revenue and Customs, then it is raising finance for their portfolio and then having to deal with tenant complaints and problems with void periods.
The number one issue for causing stress and worry for landlords
However, according to the study, the number one issue for causing stress and worry for landlords is having to deal with rent arrears and arranging for property repairs.
The research also reveals that landlords believe they are paying more than they should do for tenant reference checks which they are now required by law to carry out.
Jane Morris, PropertyLetByUs’ managing director, said: “With new legislation, increased taxation and mortgage lending rules, landlords are under huge pressure and Right to Rent is making the situation worse.
“The government argues the legislation will help crackdown on illegal immigration but it’s placing too much responsibility of landlords.”
Anyone would believe the government disliked landlords
She added: “With what appears to be a relentless attack, anyone would believe the government disliked landlords. The fact is that landlords provide essential social and private housing for growing numbers of tenants who cannot afford to buy.”
Ms Morris pointed out that it’s not just the UK’s landlords that are struggling with the Right to Rent scheme as several charities in the West Midlands are also warning people that they will struggle to find accommodation and may even end up becoming homeless.
She said: “Right to Rent is undoubtedly making a tenant’s life more miserable than it already is and the same can be said for landlords.”
Call to ban letting agent fees
Meanwhile, Generation Rent, the tenants’ lobby group, is calling for a ban on letting agent fees when the issue is debated by the House of Lords.
The Renters’ Rights Bill would bring to an end the practice of letting agents charging fees to tenants and allow tenants to access information about potential rogue landlords. There are new rules on electrical safety checks in a private rented property.
A spokeswoman for the group said: “There’s nothing to stop a letting agent from charging a grossly inflated rent and if landlords had to pay the fees, agents would have to start lowering their prices with tenants finding it easier to move and making the rental market more efficient.”
