Subscribe Feed (RSS)The Regulation bell tolls for buy-to-let landlords
May 5th, 2009 by Karelia | Filed under Home Search Agent.Musings of a London Home Search Agent
The Times led this morning with the story that the government is considering introducing a £50 licencing fee for all buy-to-let landlords. The proposal follows and independent review last year for the government, in which leader Julie Rudd, a research fellow into Housing Policy recommended a ‘light touch licencing system’.
Searching, as we are, for fabulous homes available for short lets in W11, W8 and W1 at present, this seems like yet another piece of red tape which will dissuade people from letting to us. Since we work predominantly in the £3,000 a week plus bracket, we have top-notch Clients who expect breath-taking homes. Frequently we are finding that the homes which really suit them are just developed properties which the developers had intended to sell but who let to our lovely tenants for a short time, to take a breather from the market.
We’ve also been known to approach Clients or contacts we know with suitable second homes in the capital, on the off-chance that they will be happy to let to named Clients. So for us personally, this is just one more piece of red tape which will make our job on the lettings search side, more difficult.
The licence was conceived to protect tenants from unscrupulous landlords, given problems in some areas in the private sector such as over-crowding. However well-intentioned I can’t imagine this is going to make much difference. I’m sure I’m not the only impoverished graduate who signed up for a 3 bedroom flat with 2 mates and immediately sublet our lounge and TV room to other friends. The kitchen was large enough to hold a ceilidh, so would have definitely made up for the lack of living space as from memory I think we would have all ended up paying about £60 a week in Pimlico, when all of us were paying £100 – £150 separately.
Unfortunately, the whole thing fell apart because the landlord suddenly realised what a goldmine he had, so renegued on the deal to refurbish and develop.
Anyway, I digress. People with little disposable income will frequently put up with sharing with many people rather than pay more for personal space. A friend’s Polish ex-lover springs instantly to mind. When she met him, he shared his bedroom in a 3 bedroom house with 3 other people. Presumably there could have been 12 housemates altogether, but he was happy as the rent split a dozen ways doesn’t add up to much.
However well-intentioned the planned licence is, it will hinder more than help. And with the dearth of short-let supply in Holland Park, Notting Hill and St John’s Wood at the moment, it’s another thing this Home Search Agent could really do without.
Tags: Buy-to-let, buy-to-let licence, Home Search Agent, top end buy-to-let
