The study, conducted by PropertyLetByUs.com, shows that Right to Rent is the number one cause of stress for over a third of BTL landlords, ahead of dealing with tax and inland revenue, raising finance, handing tenant complaints and void periods.
Only rent arrears and sorting out property repairs are voted as more stressful than the new immigration checks.
Landlords in areas with highest level of immigration like London and the South East, the West Midlands, the East of England and the North West are suffering the most under the new legislation. What’s more, landlords are concerned that they are paying over the odds for all the reference checks that they now have to make, to ensure compliance.
Research from the Residential Landlords Association (RLA) shows that in February 2016, when the new Right to Rent came into force, a staggering 90% of landlords in England and Wales had received no information from the government on their legal duties under the new rules.
The research also found that 72% of landlords did not understand their obligations under Right to Rent and 44% will only rent to people who have documents that are familiar to them. Since 1 February, landlords are legally obliged to make sure their tenants have the right to be in the country and report those who do not to the authorities. Landlords found breaking the Right to Rent rules will face punitive fines of up to £3,000.
Jane Morris, Managing Director of PropertyLetByUs.com comments: “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 BTL market. The indisputed fact is that landlords provide essential private and social housing for a growing band of tenants, who simply can’t afford to buy. With forecasts from PwC predicting that 7.2m households will be in rented accommodation by 2025, landlords will continue to play a pivotal part in the supply of housing for a growing UK population.
However, it is not just landlords that are suffering under the Right to Rent legislation. Several charities working in the West Midlands have warned that people they represent were now struggling to find accommodation and some had even become homeless. It is undoubtedly making tenants’ lives even more miserable than they already are - the same can also be said for many landlords.”
