Increased Regulations In Lettings Sector
Increased Regulations In Lettings Sector - Agents Assistance Is Vital
As of the start of 2020, landlords had to deal with 156 pieces of legislation. There has been a 32% in regulations over the decade.
At a time when landlords across the capital and country are under considerable pressure, there is a need for viable assistance for professionals in the letting sector.
Many believe there are too many regulations in lettings sector
David Smith, Policy Director for the Residential Landlords Association, said: “Removing criminal landlords from the sector will only be achieved if councils have the resources and the will to properly use the wide range of powers they already have. Piling more regulations onto the sector which will continue not to be properly enforced is meaningless and serves only to put off good landlords from providing the homes to rent we need. It is time for smarter enforcement, not more regulation.”
Of course, while there are calls for smarter enforcement by major names in the rental market, this hasn’t been brought to the fore just yet.
Therefore, landlords must prioritise recognising and complying with regulations.
Importance of referencing tenants
While every aspect of managing rental property is important, landlords should remember the importance of referencing tenants.
This is what ARLA Propertymark says about the importance of referencing tenants; “As a landlord, you will need to rigorously reference new tenants to check they are reliable and will be able to meet rent payments each month. These include credit eligibility, employer checks and previous landlord references. Most importantly, landlords must check that their tenants have the right to lawfully live in the UK. Failure to undertake a Right to Rent under the Immigration Act 2014 can result in a fine or even a jail term, so it’s important they are conducted thoroughly."
2021 is likely to be a challenging year for the rental market too
No matter your political persuasion, it is fair to say Brexit will pose a number of challenges in the lettings sector.
Jeremy Robinson, the group managing director of Housing Hand, a rental guarantor service, has spoken about the impact Brexit will have on regulations in the rental sector.
Jeremy said; “The only thing certain about the UK rental market following Brexit, is uncertainty. Landlords face uncertain income from tenants, while tenants continue to face uncertain income due to the pandemic. Meanwhile, the number of working European tenants is likely to drop due to Brexit and Covid. All against a likely backdrop of falling property prices.”
Jeremy continued by saying; “The requirements for European tenants to travel, work and rent in the UK will change as a result of Brexit. Renting is likely to become more difficult, as the Right To Rent requirements will almost certainly change at some point in the not-too-distant future. Brexit’s effect on rental property, compounded by Covid, tax and legislation changes, means it is difficult to foresee many positives.”
How landlords should protect themselves against changing regulations
With so many new or updated regulations to consider, ensuring compliance will almost be a full-time role for landlords. Many landlords will consider themselves unable to stay in touch with the required legislation, but help is available.
Now more than ever, it makes sense for landlords to rely on agents to ensure they stay in touch with regulatory matters affecting their business.
Rather than battling to keep up to date with an ever-changing landscape, turning to professionals whose job it is to know the latest regulations will remove much of the stress of property management for landlords in 2021.
At Regal Estates, we are more than happy to assist landlords manage the increased regulations in the lettings sector.
If you are interested in our lettings or property management services or you are looking to buy, sell, let or rent property in or around Willesden, Harlesden, Dollis Hill or throughout North West London, call us on 020 8459 2530 and a member of our estate and letting agent team will be happy to help.