A new study has revealed that buy-to-let investors are growing increasingly frustrated with Right to Rent legislation – which holds landlords liable for investigating their potential tenants’ right to live in the UK.
The legislation, which came into force on 1 February 2016, has put British landlords under ‘undue stress and concern’, according to a survey carried out by PropertyLetByUs.
A third of UK landlords told the property website’s survey that Right to Rent was their ‘biggest burden’.
In fact, investors ranked the costly compliance measure ‘more stressful’ than raising finance, elongated void periods, dealing with tenant complaints, and handling HM Revenue & Customs (HMRC) queries.
Rent arrears and arranging property repairs were the only two complications that ranked higher than Right to Rent checks.
Jane Morris, Managing Director of PropertyLetByUs, said: “Landlords are under huge pressure with constant new legislation, new mortgage lending rules and increased taxation.
“Right to Rent is making matters worse. While the Government argues this will help crack down on illegal immigrants, it is placing far too much responsibility on the shoulders of landlords.”
Many landlords cited fines for Right to Rent errors of up to £3,000 as the primary reason they felt plagued by the legislation.
Landlords confused by buy-to-let legislation are advised to consult the relevant experts for advice to avoid costly complications.