Tenants Fees Ban Receives All Party Backing
If you operate as a Landlord, it is essential that you remain up to date with regulations imposed on you. There has been a considerable number of new and updated regulations for the rental market in recent years, leaving Landlords feeling bewildered and bemused as to what they need to do to provide a dependable service. At Villabela, we know the challenges Landlords face staying up to date with regulations, and with the Tenant Fees Ban bill receiving all party backing, it is likely that more changes are on their way.
This bill is likely to be introduced in 2019 and Landlords will be affected in several ways. As you have probably surmised from the game, there will be a change to the fees and charges a Landlord can impose on tenants. There will also be an introduction of a deposit cap, with the limit being set at six weeks’ worth of rent.
The deposit cap will lead to changes in property market
There has been debate about the level of deposit cap and the fact that all parties seem to have compromised on the figure suggests that there is an agreement that this is the best possible figure. Tenants would prefer the cap to be set lower but are happy that there is now a cap. Landlords would prefer that there was no cap but are satisfied with six weeks as opposed to a lower cap which may have impacted on a Landlords’ decision to rent to certain tenants.
One thing that the Government has focused on of late is rogue Landlords and agents in the rental sector. Making it harder for agents to provide a poor standard of service will be of benefit to the market. Tenants will be the main beneficiaries but Landlords that provide a dependable and reliable service should find that they can achieve more in the sector and will hopefully find that good tenants will gravitate towards them more easily.
Rogue Landlords are being targeted
There is also a lot of work being undertaken by the Government to reduce the level of rogue Landlords operating in the sector. There is disagreement as to the extent of this issue but if you are a tenant who has suffered because of a rogue Landlord, it is likely to have had a hugely negative impact on your life.
The Shadow Minister for the Private Rented Sector, Melani Onn, stated; “We know that the majority of Landlords are good Landlords, or strive to be, and understand the expectations upon them before they embark on becoming a Landlord. However, a number of rogue Landlords and letting agents give the sector a bad name, undermine the good work of quality agents and Landlords, and they have squeezed tenants for cash in unfair ways, with disproportionate charges for unjustifiable reasons.”
While there has been a lot of positivity surrounding this announcement, Landlords have been advised about potential costs to them with the new bill. A study undertaken in May of 2018 suggests that UK Landlords could be made worse off by £80m in the initial year of the bill while letting agents could be made worse off by £157 million.
At Villabela, we know how essential it is for Landlords to comply with regulations and to remain in touch with all new laws and rulings. We aim to provide you with as much guidance and assistance as possible, so please get in touch if you would like to be aware of how the new regulations may impact on you.
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