The private rented sector in England is governed by an increasingly complex array of legislative and regulatory requirements, a breach of which can carry significant financial penalties or even cause a landlord to conduct a criminal offence.
When you let property in the private rented sector there is a considerable amount to think about. You will need to ensure that you are compliant with all laws and regulations, that you get yourself and your property ready and that you find the right tenant. However, there are some specific requirements that should be taken into account if you are planning on renting out a leasehold property.
If you are planning to let out a property in the Private Rented Sector, there is a considerable amount of work that you will need to do to ensure that you are compliant with legislation and that your property is safe and ready for tenant occupation. Our checklist is designed to help you get things in order.
Where a property is let under an assured shorthold tenancy, there is a legal requirement under the Housing Act 2004 for landlords to place a tenant’s deposit into a Government backed tenancy deposit protection scheme. There are two types of scheme – custodial or insured. It is always the landlord’s responsibility to comply with the law.
The Institute of Economic Affairs has issued a damning report on the impact of taxation on the Private Rented Sector (PRS) entitled "Taxation without Justification".
Notwithstanding how important the private rental sector is to the provision of housing in the UK and the fact that 80% of private tenants express a level satisfaction with their homes, the PRS has been adversely impacted by seismic changes to legislation and taxation over recent years. Landlords are being forced to re-evaluate the economics of the industry, with many considering increasing rents to buffer the impact of considerable government intervention.