Concerning new research has revealed that Right to Rent is causing buy-to-let landlords serious amounts of worry. This is particularly prominent in regions of the UK with a high population of immigrants.
The investigation conducted by PropertyLetByUs indicates that conducting Right to Rent checks is one of the biggest causes of stress for buy-to-let investors. This came ahead of dealing with tax issues, dealing with tenant complaints and void periods.
Only rent arrears and sorting property repairs were found to be more stressful than immigration assessments for investors with landlord insurance on a property.
Landlords in regions with high immigration numbers, such as London and the South East, the West Midlands and North West, were found to be suffering most with Right to Rent.
In addition, some landlords are worried that they are paying too much for all necessary reference checks, in order to meet compliance requirements.
Separate data from the Residential Landlords Associaton shows that in February 2016, when the Right to Rent checks became law, 90% of landlords in England and Wales had received no information about their new obligations.
Investors found to be breaking Right to Rent rules could face fines of up to £3,000.
Jane Morris, managing director of PropertyLetByUs said: ‘Landlords are under huge pressure with constant new legislation, new mortgage lending rules and increased taxation. Right to Rent is making matters worse. While the Government argues this will help crack down on illegal immigrants, it is placing far too much responsibility on the shoulders of landlords.’
‘Anyone would think the Government dislikes landlords, with what appears to be a relentless attack on the buy to let market. The undisputed fact is that landlords provide essential private and social housing for a growing band of tenants, who simply can’t afford to buy,’ she continued.
Concluding, Morris noted: ‘It is undoubtedly making tenants’ lives even more miserable than they already are – the same can also be said for many landlords.’
Landlords concerned about Right to Rent should make sure they read our comprehensive guide. More key information can be sourced through our resource centre.