Landlords quit the property market as new laws take hold
Letting Agents - 25/09/2006 16:10:45
Landlords are quitting the property marketing in their droves as new property laws begin to have an effect, letting agents around the country have claimed.
Around 30 per cent of letting agents questioned by the Royal Institute for Chartered Surveyors (RICS) claim that landlords are selling their properties in order to escape having to cope with house in multiple occupancy laws.
On top of that, a further 15 per cent of letting agents claim that landlords are being forced to structurally rebuild their properties to comply with the law.
A house of multiple occupancy applies to bed-sit style properties or single properties that have been divided into two with tenants sharing communal amenities.
Under the new laws, landlords are being forced to ensure their properties comply with health and safety regulations and have the required amount of fire escapes.
Jeremy Leaf, RICS spokesperson, said: "The decrease in houses with multi-occupation will help to cut down on rogue landlords but will cause problems by reducing the number of properties available.
"As landlords decide to withdraw from the sector they will create an additional burden on the state to house the most vulnerable tenants."
Mr Leaf claims that students and immigrants would be hardest hit as urban properties become scarce and the rental costs go through the roof.
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