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Budget surprise for rented sector – all tenants to be allowed to sub-let
After the Chancellor sat down, it emerged that there are plans to make it illegal to prevent private tenants from sub-letting.
The small print of the Budget – which often proves crucial – reveals the intention to make it illegal for tenancy agreements to include clauses that prevent sub-letting.
While the wording is not particularly clear, it could be seen as a green light for the often controversial practice of rent-to-rent.
Page 51 of the Budget Red Book outlines measures to “make it easier for individuals to sub-let a room”.
The Government says it intends to legislate to “prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short term basis, and consider extending this prohibition to statutory periodic tenancies”.
The move came under strong attack from Alan Ward, chairman of the Residential Landlords Association.
He said: “The measures on sub-letting are a nightmare in the making and smack of ‘back of the *** packet’ policy making.
“Key questions remained unanswered such as who will be responsible for a property if the tenant sub-letting leaves the house but the tenant they are sub-letting to stays?
“Similarly, given the Government wants landlords to check the immigration status of their tenants, who would be responsible for checking the status where sub-letting occurs?
“Whilst the RLA awaits further detail on this measure, it is difficult to see landlords supporting it.”
