Budget sub-letting clause causing concerns

Private residential landlords will be wary of new Government legislation in discussion as the details in the small print could give tenants the right to legally sub-let their property. A rise on insurance costs could be on the cards for landlords as it will become harder for insurance providers to monitor who is residing in each property. For example, student tenants may cause more of a headache than working professionals. Going forward landlords will find it difficult to monitor the tenants of each home as they will no longer have full control of who resides in their properties. There are potential legal ramifications as there may be higher underwriting rates when they factor in the potential extra damages caused by tenants who are sub-letting each property. These would cause great concern as sub-letting will more than likely not be referenced professionally, resulting in very few details about their regular payments. One of the worst-case scenarios would be if an original tenant left the property, leaving the sub-letting tenant in full control. This could cause a plethora of potential outcomes, each of which able to cause a substantial headache to the landlord. There would also be worries over the immigration status tenants, and whether they are legally allowed to reside in the country. This ruling doesn?t seem to benefit any party and we?ll be hoping the Government will review the potential ramifications of these changes and re-think this move.

Quick reg (franc)