The Residential Landlords’ Association has suggested that a period of economic and political confusion can be expected in the month ahead, following the result of the EU referendum.
David Smith, policy director at the RLA, feels that new legislation will have to be drawn up, to either replace or add-on to existing rules enforced though the EU.
Mr Smith also feels there will be, ‘a period where some laws which technically apply will be enforced in a lacklustre fashion on the basis that they are shortly to be repealed.’
In a warning to buy-to-let landlords, Smith also said that immigration, a key player in the leave campaign, could be subject to a third parliamentary act in as many years. Smith feels, ‘it now seems likely that there will be a third such Bill in order to fill gaps in border controls left by leaving the EU. This may also involve further regulation on the private rental sector.’
What’s more, Mr Smith said that potential changes to do with tenancy deposit protection, alongside consultation on HMO licensing, could be put on the back-burner.
He also warned that further legislation involving energy efficiency could also need to be replaced.
Concluding, Smith said, ‘also needing to be looked at will be the Consumer Protection From Unfair Trading Regulations which also rely on and EU directive.’
Advice for landlords
Landlords should remain vigilant but not panic in light of the referendum result. Remember to carry out the basic checks, referencing and safety obligations that will not change given further legislation.
Take out sufficient landlord insurance, enlist the help of a reputable letting agent if you are worried about time constraints and always research the area in which you are looking to invest.
The spiralling demand of would-be renters means that business in the buy-to-let sector is unlikely to be deterred by wider uncertainty.
New legislation is also unlikely to be imminent. As such, continuing to uphold best practice is a certain to bring you the best returns!