Property News Archive

Warning over too much red tape in lettings

Wednesday 20th May 2009

Increasing costs and rising red tape will deter new landlords from entering the buy-to-let market.

Landlord Assist, a tenant eviction and rent collection company, said that the Government's proposals to charge landlords a £50 annual licensing fee could be the last straw.

The company said there is already sufficient legislation in place to ensure standards within the rented sector are upheld.

It added that currently a landlord needs, for each property, a gas safety certificate at an approximate cost of £75, an electrical safety inspection at £125, an Energy Performance Certificate at £100, a letting agent's tenant finding fee of nearly £500, inventory charges approaching £100 and mandatory deposit protection, costing approximately £30.

Some landlords will also require an HMO licence at about £800 and a fire certificate at an approximate cost of £400, and all this before receiving any rent. Costs could add up to £2,130.

Graham Kinnear, managing director of Landlord Assist, said: £Landlords are already facing reams of legislation in a challenging economic climate.

"More should be done to encourage landlords to enter and remain in the market."