Thursday, Aug 30, 2007
Why bother when you're in it for capital growth
Firstrung: Buy to let landlords fail to register with tenancy deposit scheme
The National Landlords Association reports that the majority of landlords have yet to register with a government-approved tenancy deposit scheme...Whist it is estimated that around 150,000 landlords have made the move to register with a scheme, it is clear that a large majority have yet to do so. Given the new legislation has been in place for almost five months, the number of landlords who have yet to register with a scheme could be a cause for concern. While landlords with tenancies that started before the scheme was launched on 6 April do not need to protect deposits until a new tenancy is created, there may be other, more worrying, reasons for the relatively slow take-up.
Posted by converted lurker @ 06:53 PM (475 views) Add Comment
7 Comments
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1. Tightscot said...
I've been renting since March 2005 and needed to move to another area recently. Approaching a rental agency (non-ARLA, non-NAEA) I was required to pay out best part of £200 to be told that, despite having a highly paid job offer to hand, substantial capital behind me, and glowing references from current/previous landlords and agencies, my credit reference wasn't good enough and I'd have to pay 6 months rent in advance to the landlord. As the house was on the market (and had just dropped in price), as well as up for rent, my reaction was one of suspicion and I pulled out of the deal... Reading about Australian tenants losing their pads after the owner defaults set me to wondering how much protection UK tenants have?
2. enuii said...
This is just like the amnesty thingy for off-shore income / investments which had a similarly low take-up and is probably due to people recognising the total incompetence and inefficiency of anything to do with HM Govt and their inability to enforce just about anything.
3. paul said...
Easy - mandate fines and imprisonment for offending landlords. That'll get them off their lazy arses.
4. enuii said...
There is strength in the number of refuseniks and not enough enforcement resources, court time, or prison places. It won't happen and will just be eventually forgotten about. If they can't stop eastern europeans living 12 or more per rented terrace then they won't be able to enforce this.
5. Si said...
I came across a landlord that refused to use the deposit scheme. Completely confused me and I pulled out. I simply don't understand why she refused. Tax reasons maybe? to get my interest? complete mystery.
6. Foggy said...
come on its obvious....if landlords register then they will be visible to the inland revenue
7. Wario said...
It has to be what enuii says at [1], with a side order of really, really not wanting to break cover, (to Big Government's Eye of Sauron; obviously us little people know who they are already), for several no doubt thoroughly above-board reasons. It'll be dressed up as "oh, deposits, just too much red tape" and "what a great philanthropist I am".
Who knows, it might turn out to be a loss leader, attracting customers in a plunging market! How clever they are!