The relationship between landlord and tenant is rarely put under more pressure than when the issue of deposits is discussed. Unscrupulous landlords have left many tenants feeling deeply suspicious of the whole question of repairs and deductions.
Read more on The Tenancy Deposit Scheme…
The succession of recent interest rate rises is starting to have an impact on the [tag]buy to let[/tag] market. The inevitable consequence of this is that some lenders are tightening their criteria for new borrowers. This means that unless a new entrant to the buy to let market can come up with a large deposit they are going to find problems balancing their rental incomes against higher loan to value mortgages.
For some time the government has been trying to introduce legislation to help protect tenant’s deposits from landlords who retain money unfairly. In the past there was no central scheme specifically set up to arbitrate a dispute between a tenant and landlord where damage to the property is alleged to have occurred.
On 6 April 2006 mandatory HMO licensing came into force across England. If you let a property which is occupied by three or more tenants, who form two or more households, and they share a bathroom, kitchen or toilet, then it is likely that you are venturing into HMO territory.
Buy to Let lenders have started adjusting their lending criteria as the long awaited buy-to-let price war hots up. Lenders, including The Coventry Building Society, have recently announced changes to their rental calculations. A few short years ago rental cover of between 130% to 150% was the norm, now The Coventry have reduced theirs to 120% with some lenders dropping cover to just 100%.