Extract from Bridging and Commercial - 25 June 2019
Landlords are “struggling to keep pace” with legislation and regulation changes in the UK’s rental market, according to the latest research.
Bridging lender Market Financial Solutions (MFS) surveyed 400 UK landlords who let one or more residential properties to tenants.
The research found that 30% of UK landlords did not understand the changes to HMO licensing introduced in October 2018, while 28% were not aware of the abolition of Section 21, which came into force to prevent unfair tenant evictions.
- Over a third were against the abolition of Section 21 (37%), compared with 16% who felt it was a positive move.
- Some 27% of respondents were uncertain about the tenant fees ban, while 19% said they understood the reform, but were unsure how it would affect them.
- Nearly half of landlords (44%) were against the banning of letting fees, with only 23% in favour.
- Meanwhile, 48% were against changes to BTL mortgage relief, while 16% were in favour of the reform.
Paresh Raja, CEO at MFS , said: “The legislation and regulation governing the UK’s rental market is constantly evolving, and today’s research clearly shows that landlords are struggling to keep pace with the change.
“From HMO regulations to the abolition of Section 21, these are significant reforms that, for the most part, are rightly designed to protect tenants.
“Nevertheless, there’s evidently frustration among landlords who feel they are being unfairly targeted, particularly when it comes to the stricter taxes being introduced.
“It’s essential that anyone renting out a property — even if they would not consider themselves a landlord — understands all the new reforms and takes action to ensure their properties meet the necessary standards and their finances are structured in line with the new reforms.”