A tenant eviction company is highly critical of the government plans to allow private tenants to be able to sub-let.

Within the budget there was a small clause about sub-letting within the section “support for the sharing economy”.

It included the following wording: “make it easier for individuals to sub-let a room through its intention 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.”

 

They said: “This appears to have slipped in under the radar which, if it goes ahead, will throw up a magnitude of problems in the buy-to-let industry.

“We have never seen so many sub-letting cases going to court because of unscrupulous tenants trying to cream a profit from a property they have rented.

“We experience continual problems with tenants taking out tenancy agreements and then, in some instances, not even moving into the property themselves, but putting up partitions and sub-letting to as many people as possible. They draw up separate agreements and trick sub-tenants into thinking they are the landlord. By the time landlords find out, damage to properties from over-crowding can run into thousands, and the tenant who holds the legitimate tenancy agreement is nowhere to be found.

“The detail is yet to be revealed but, in my opinion, there should have been a period of consultation with the industry before this was announced. This is not the way to fix the housing shortage, and in fact will have quite the opposite effect if more and more landlords are exposed to the risk of nightmare sub-tenants.  Giving landlords even less control over their own property by preventing them from instilling clauses which prevent sub-letting could drive more good landlords out of the marketplace.”

The firm are taking part in a Channel 5 documentary about the levels of sub-letting and its inherent problems, due to be broadcasted in the next couple of months.

 

Much of these comments we read with interest however this was a budget statement and NOT law - To introduce such into statute - would conflict with HMO, Fire Safety Order, Selective Licencing, Change of Class Use re Building Reg, Immigration etc etc. Those characters who sublet with ill intent and ignore the landlords rights and the AST and ignore the law will do so anyway. If unsure provided a member call.

 

There are ALREADY defined processes in place for dealing with sublets and what MOST people do not realise is the default position in law is a Tenant MAY sublet unless AST prohibits  - The statement in the budget intimated may prohibit the use of "you may not sub let" clauses