Government changes to housing law have raised concern among some landlords that the government’s proposed ban on clauses which prevent short-term subletting may lead to landlords having to apply for house in multiple occupation (HMO) licences – or landlords may have to check the immigration status of subletting tenants.
The proposals were contained in Chancellor George Osborne’s Budget in March. There is a shortage of affordable housing across the UK and in some cities rents for properties have escalated as a result.
Allowing rental properties to be sublet at least in the short-term may go some way to resolving the problems of homelessness, lack of affordable housing and high rents.
However, if the proposal becomes law, some properties may be subject to overcrowding – and it would also be harder for landlords to keep track of who is actually living in a property.
Maintaining multiple occupancy properties may also prove more costly, with more regular refurbishment and maintenance needed if more than the designated number of tenants are living at a property.
The Budget proposes that clauses that “expressly rule out” subletting would be outlawed to enable all properties to be sublet.
Clauses prohibiting subletting also frequently appear in leases for flats and leasehold properties.
The ban on subletting initially may apply to fixed-term tenancies only – but may be rolled out across all tenancies, meaning landlords would not have the right to oppose a tenant subletting the property on a long-term or short-term basis unless there were other factors involved.
The government said the change would mean landlords “always have to consider tenants’ requests reasonably” – giving more power to tenants and potentially helping to reduce the cost of renting if there is space in a property that can be sublet.
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