Brexit affecting regulation UK rental market;
TOOTH MARKS ON UK LANDLORDS
Talking about over regulated systems, trying to get a license in order to be eligible for new tenants in the house in the UK is a fun and not in any way tedious system. I am of course being sarcastic – DETECT THE TONE!
Ok perhaps some clarity would be appropriate. Please be patient while I type up all the juicy details, correction, while I violently smash at the keyboard in frustration.
Yes regulation is good at times, under regulated markets can lead to great booms and moreover great busts, I’m sure we have all been influenced by at some point during our lives one way or another, unless of course you were not yet alive in 2008 in which case, why are you here? This is hardly the place for a ten year old! Back to school with you… On the contrary over regulated markets have the tendencies to create flat & harsh economies with heavy restrictions on people such as first time buyers etc. etc. Yes, I’m sure by now this is all old news and anyone with some sort of a common sense can detect that a perfect market would consist of a balance between over and under regulation. In the event of arriving to this logical explanation without the aid of this blog, congratulations, here is you economics degree.
Now, back to the original reason I’m here today. Our real estate agent back in Nottingham, England, has let us know that in order to be able to begin the search of finding new tenants for the property, we must first go through approximately a dozen steps just to commence. The first few steps are what seem ‘reasonable’ as they are basically,
a) pay (alot)
b) insurance (pay some more)
c) mortgage details (where the money for all those payments came from)
d) right to reside in the UK [(hurrah Brexit) but again I understand, I suppose]
The next couple of steps are what I deem necessary, overall they consist of the odd EPC (energy performance certificate) here and there. Knowing how much electricity or gas one might need to consume in order to warm a property for 10 months a year is definitely something one needs to know before making a final decision. However the question remains, how is it we must once more provide an EPC when the previous tenants entered the property less than a year ago under the same agents? Perhaps the certificate is on some sort of online database and this entire paragraph is irrelevant, in such a case, I will make sure not to inform you or admit my mistake as in doing so my argument will be less vivid. You have been warned.
Following on, we wrap up this beautiful ‘to do’ list with the final elements of the procedure. Now these are mostly educational, landlord training courses – 6 of em! – behavioural courses, – how to be human for dummies and PAT tests etc. Now yes, I understand, honestly I do, I’ve been a tenant and I’ve known tenants and in both cases there have been instances of gross negligence, abuse toward the person letting in the form of threats and unreasonable requests as well as an overwhelming hatred and fear toward meeting the person that owns the property. BUT FEAR NO MORE! LANDLORD TRAINING IS HERE TO COUNTER THIS ONGOING NIGHTMARE!
Paying 85 pounds and going through a couple of hours a day training for the completion of an online obligation leading to a certificate will obviously make you a better landlord, especially if you have been a cruel, cold, apathetic monster till now. But who am I to judge, I suppose any form of standards that could lead to a general improvement will impact the markets in a positive manner. This, I presume, was the overall theory upon applying these regulations.
However, the issue doesn’t remain within the steps themselves, oh no, the issue spreads further, rooting to depths even geologists have yet to discover… Where you ask? Well, for me the issue is the absolute uncertainty, unclarity and lack of support this procedure offers. Trying to establish a healthy link between landlords and tenants is one thing, demoting the rental market through extra tax payments etc. for the overall uplift of first time buyers another, but penalising home owners through complicated labyrinths of bureaucracy, intentionally limited info and approx £1000 worth of hidden charges is a completely different story.
Having to go through 10s of different websites, one at a time, each time setting up new passwords and usernames, while searching for something otherwise unclear is very much, a frustrating process. Doing this and paying for each step only enhances its provocation, while finally, applying for a license, when abroad, with a vacant property in the UK and a brand new council tax bill of £1203.68 as the house is no longer occupied, does send shivers down my spine! If only we were warned accordingly of these changes in the system prior to terminating the lease with our previous tenants…
Now, back to the basics. Greece, lets be more specific, Crete, even more specific, Chania, does have a complicated and at times old fashioned legal system as well as time consuming application system, but behind all these restrictions and boundaries, there are always professionals taking care of the interests of our clients, enhancing the processes while making sure each element is covered to the absolute detail, bothering the owners with questions or requests only once to twice during the entire cycle of renting or buying.
While both markets have their pros and cons, at least we can provide security and a peace of mind to our clients. Offering a smooth and fundamentally secure service is as important as offering a warm, beautiful property. Hopefully this will linger and pop up next time you receive a letter titled, ‘list of requirements’ followed by a bill and an engaged telephone line…
Brexit affecting regulation UK rental market