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Easier subletting and short-term
rentals may drive down standards
Government initiatives to promote
the sharing economy by relaxing rules
on subletting and short-term home
rentals will drive down standards in the
sector, property experts have warned.
Under proposals contained in this
year’s Budget, the Government will
make it easier for individuals to sublet
a room by preventing the use of clauses
in private fixed-term residential tenancy
agreements that rule out subletting or
sharing space on a short-term basis.
The Government will also consider
extending these measures to statutory
periodic tenancies.
In February, Housing Minister Brandon
Lewis confirmed plans to remove
restrictions on Londoners who want to
rent out their rooms on websites such
as Airbnb and Onefinestay, which have
proven wildly popular in recent years.
Daniel Watney, a leading London
property consultancy, warned then
the changes would lead to a surge in
unauthorised lettings. It would encourage
tenants and leaseholders to sublet homes
without their landlords’ consent. In spite
of this, landlords would ultimately be held
responsible for any consequences.
Daniel Watney’s head of residential, Julian
Goddard, fears rather than responsible
owner-occupiers occasionally seeking
to let unoccupied units, the change in
law will be used by those seeking to
exploit tourists and others wanting cheap
accommodation in the capital.
Properties advertised on sites like
Airbnb aren’t subject to the same health
and safety standards as hotels. This
has drawn the ire of many hotel chains
in recent years. Landlords too have to
comply with similar standards.
Currently, under Section 25 of the Greater
London Council (General Powers) Act 1973,
use of residential premises for temporary
sleeping accommodation for less than 90
consecutive nights is considered a change
of use, which requires planning permission.
As a result, thousands of Londoners
may be unknowingly in breach of Section
25, for which the penalty is a £20,000 fine.
Enforcement has been uneven over the
past few years. One case in point was the
2012 Olympics, when many in the capital
sought to profit from the huge influx of
visitors seeking temporary or overnight
accommodation.
The Government wants to remove the
need for planning permission for those
seeking to rent out their home as part
of a wider effort to boost the ‘sharing
economy’, which PwC says could be
worth £9bn to the UK by 2025.
A number of London councils rejected
the changes, worrying over disruption to
neighbourhoods and reducing London’s
limited residential stock even further
by transforming flats and houses into
informal hotels.
As a concessionary measure, the
Government set an annual three-month
limit on short-term lets, although some
councils called for it to be cut down to
just one month.
Julian Goddard, head of residential at
Daniel Watney, said: “Despite laudable
intentions, the unforeseen consequences
could be rather serious. These proposals
go against the grain of the Government’s
recent efforts to better protect landlords
and tenants alike with new safeguards.”
Landlords urged to inspect beyond
boundaries after new compensation ruling
Landlords could be liable for injuries
to their tenants even outside the
property boundaries, after a recent
Court of Appeal case. LetRisks is urging
landlords and agents to regularly
check for disrepair both at the property
and on any areas where there is a
right of access to the property, and
is supporting this by offering a free
review for letting agents.
In the recent ruling in the Edwards v
Kumarasamy (2015), the tenant lived in
a second-floor flat and had been taking
out the rubbish when he tripped over an
uneven paving stone in the path, between
the front door of the block and the
communal bins in the car park. As a result
of the fall, the tenant injured his knee and
was awarded £3,750 in damages.
Michael Portman, Managing Director
of LetRisks, comments: “Property owners
are responsible under the Landlord and
Tenant Act 1985 to ensure that their rental
property is in good repair. This recent
court ruling has thrown into question
where the boundaries of responsibility lie
for landlords, after the tenant successfully
claimed for falling on a path to his block
of flats. There was a legal right of access,
but it wasn’t part of the structure of the
building. This case also goes against the
opinion of many agents that they need
only act when the tenant has notified
them of a repairing issue.
“Landlords are obliged to maintain
any part of the structure or exterior, in
which they have an estate or interest,
and should regularly inspect and
10 Landlord & Buy-to-Let Issue 58 • April 2015
maintain their properties at all times, to
safeguard the tenant.
“To help agents manage the risk for
landlords beyond the boundaries of
the property, LetRisks has introduced
a free service to review the landlord’s
risk and recommend measures to
reduce any potential liability. LetRisks
has also negotiated special rates with
insurers for landlords who may have an
individual flat within a block and require
a specific policy that covers them for
their legal responsibility.”
LetRisks have a UK-based customer
services team who have the expertise
to answ \