Law Management Blog

Just another Blog for Lawyers

Landlords fearing regulations in 2010

leave a comment »

A list of landlords’ worries for the year ahead has highlighted existing regulations as a number one concern, and, with more regulations possibly on the way, 2010 could be a cautious year for the letting market.

According to Paragon Mortgages, 58% of landlords said they were worried about the level of regulation required in relation to the running of their property businesses during the year.

With almost 50 Acts of Parliament ring-fencing the private rented sector, and 70 sets of regulations governing the total sector, the government’s recent announcement that a national mandatory registration scheme for landlords could become a possibility has done little to alleviate fears.

“It is not surprising that regulation tops the list of landlords’ concerns for the year. They already have to comply with a myriad of regulations, which seem to be regularly added to or amended by the Government,” said Paragon Mortgages’ Managing Director, John Heron.

In addition, HM Treasury (HMT) is currently consulting on whether the Financial Services Authority’s (FSA) remit should be extended to regulate the buy-to-let sector. This is likely to tighten buy-to-let product availability and increase the cost of mortgages, which will have knock-on impacts for both residential property investors and tenants and “must be avoided”, according to Mr Heron.

“If HM Treasury legislates to give the FSA the power to regulate the buy-to-let market, then buy-to-let mortgage product availability may decline and it could become more expensive to borrow. Any extra costs are likely to be passed on to the ultimate end user – the tenant – and could price the private rented sector out of the reach of some of the more vulnerable households.”

Several new regulations have been introduced in recent years, including Energy Performance Certificates, tenancy deposit protection schemes and Houses in Multiple Occupation Licensing. And, with other landlord concerns including retaining tenants (32%), finding tenants (31%), tenant disputes (24%), and meeting mortgage payments (12%), 2010 could prove a pivotal year in the letting business.

Advertisements

Written by Andrew Hodges

January 19, 2010 at 5:17 pm

Posted in Comment, LinkedIn

Tagged with , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: