Following the 2015 Budget announcement, a brief outline was given by the Chancellor for how the Government intends to change legislation regarding private tenants and their ability to sublet.
On page 51 of the Budget Red Book, which was published following the Chancellor’s 2015 Budget speech, the intention to allow private tenants to sublet was first raised as part of the wider proposals for the sharing economy.
The document states that the Government wishes to: “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.”
One of the main questions left unanswered by the document is how legislation will impact on landlords and property owners whose tenants might not update them if a property is sublet to other tenants.
Brandon Lewis, who was the MP responsible for housing until 30th March 2015 (when Parliament was dissolved for the next general election) said: “Tenants should be able to ask for permission to sublet their home without expecting a blanket refusal in every case – but landlords should also have the right to know who is living in their property.
“Our proposals would mean a tenant could ask for this permission under the model tenancy agreement, with landlords having the right of refusal offering reasons for that decision and within a reasonable time frame.”
However, due to a lack of clarity on the situation, the Residential Landlords’ Association (RLA) has now expressed its intention to meet with officials at the Department of Communities and Local Government (DCLG) to obtain more information.