Plan to Outlaw Tenancy Sublet Bans Hidden in Budget Detail

Written by RLA

As the dust settled on the final Budget of the current Parliament, there appeared little for landlords to get excited about.  A broad campaign to extend the life of the Landlord’s Energy Saving Allowance (LESA) was left disappointed and the scheme will expire in April of this year. With energy efficiency requirements on the way, this is a blow to private landlords who will now have to rely on the Green Deal Home Improvement Fund (GDHIF).

However, hidden away in the Budget ‘Red Book’ was this worrying paragraph:

“The government intends to legislate on preventing 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 will consider extending this to statutory periodic tenancies. This will, the red book says, “ensure that landlords always have to consider tenants’ requests reasonably.”

Taken at face value, landlords will no longer be able to include clauses that prevent tenants from subletting.  It also raises a string of questions about who will be responsible for legal responsibilities such as the myriad paperwork required, serving of notices and immigration checks (should they be rolled out).

The Budget also confirmed that the Government plans to implement 7 waiting days for Universal Credit in July 2015 and restrict access to Universal Credit for EEA migrants who are out of work.

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The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

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