After the Chancellor sat down, it emerged that there are plans to make it illegal to prevent private tenants from sub-letting.
The small print of the Budget – which often proves crucial – reveals the intention to make it illegal for tenancy agreements to include clauses that prevent sub-letting.
While the wording is not particularly clear, it could be seen as a green light for the often controversial practice of rent-to-rent.
Page 51 of the Budget Red Book outlines measures to “make it easier for individuals to sub-let a room”.
The Government says it intends 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”.
The move came under strong attack from Alan Ward, chairman of the Residential Landlords Association.
He 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.”
The Budget Red Book is available here
I am confused; Won’t this create legalised unofficial HMO’s?
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Madness – what will stop someone renting a property, not moving in and then immediately letting it out to someone else at a higher rent?
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Answer: increase your rents to the point where it makes it impossible to achieve any more!!!
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My first thoughts exactly. There will be someone that decides to do that as a living. Find a few properties under value, add on 10% and get a tenant/tenants in within a few days and Bob’s your uncle. I just wonder about references, I assume they would not be needed to a subletter, so the originally named tenant should be the person liable. I suppose it will be a while until we hear more.
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What a stupid idea! Just when I thought the Conservatives were doing well by the PRS.
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Surely it is not April 1st already? Please can anyone explain the rationale of this proposal because I for one cant understand it. Never heard this mentioned on the news, I wonder why!
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Given Labour want rent control, liberals also want rent control as do the greens and now the conservatives keep bringing in extra rules and regs such as immigration checks and now permit sub letting it just leaves UKIP to vote for
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In many blocks in London the tenant is required to enter into a deed of covenant with the superior landlord and we must register the tenancy. Often there is an absolute prohibition in the lease against the tenant sharing possession or sub letting part of the property. Its fraught with difficulty. I suspect that this idea after consultation will be kicked into the long grass.
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The law should also be made clear that anyone that is not named on the AST, MUST be removed by the police on the day the landlord requests if the name tenant has left or been evicted.
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How will this work with a HMO, it is hard enough stopping someone moving their boy friend into their room as it is?
Otherwise a right to take ONE lodger in a single let, including require all insurance companies, mortgage companies and freeholders to allow it may not be a bad idea.
The law should also be made clear that anyone that is not named on the AST, MUST be removed by the police on the day the landlord requests if the name tenant has left or been evicted.
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I imagine and hope that the original tenant (head tenant?) will still be liable for the rent and obligations and if they then choose to take in a lodger then thats on their head. Upto the agents to make sure the head tenant can actually afford to rent the property in the first place.
Is likely to lead to higher wear and tear, as others have said will this not be a HMO if they let out a few rooms.
I can understand the reason behind it – to make on a more equal footing as a home owner. But thats the rub they are not the home owner. If a home owner wants the extra wear and issues then thats down to them, this gives a landlord no option. One of the concerns of our landlords is to protect their neighbours thus we are careful on the tenants we put in. A head tenant may not be so careful and perhaps not even live there themselves. What a can of worms.
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No no no, this can’t be right. Please tell me this is a Lib Dem policy and not one done by us tories!
How does this affect a landlords Rent insurance policy?
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So who exactly is going to carry out the immigration checks on the sub-lessees then ? Landlords must be permitted to know who is renting their property at all times and that those renting have a right to be in the country in the first place. Can you imagine how this is going to rip the PRS apart ? Bonkers idea.
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Definitely a can of worms! Thinking as an agent “Yes Mr Landlord, we will carefully select a suitable tenant for you, do strict references checks etc……… but then they can move in whoever the hell they want ….. !!! Ridiculous concept!
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Incredible really. All the work that everyone puts in to vet tenants and now the government are going to help money launderers find accommodation using cash. In Gosforth, upmarket area of Newcastle, we’ve had endless cannibas farms as it is. Good job my partner specialises in Proceeds Of Crime Act!
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