The landlord: ‘Penalties must be severe or many will just not register’

Keshav Thukaram, 39, describes himself as a “typical buy-to-let landlord”. He has let out a two-bedroom flat in Wimbledon, southwest London, for the past four years and says he has a good relationship with his tenant. He recently co-founded the website smartlandlord.co.uk.

He said: “It’s a good thing for the Government to be serious about the private rented sector because first-time buyers are struggling to buy and there is a huge social housing waiting list.

“The only way we can meet the country’s housing requirements is for the Government to establish a positive approach to the rental market and do away with the negative reputation that buy-to-let investors have earned. It’s great that these measures prove there is a commitment to making the sector more professional.

“Being a landlord should not be seen as a hobby any more; landlords have to take the role more seriously. It can take years to build up a sound buy-to-let business. However, I am concerned about how easy it will be for landlords to obtain a licence if this measure is introduced and how much it will cost. They already have a licensing system in Scotland, but it was badly implemented. In some cases, landlords who applied for the licence did not get it. Also, how will the Government enforce these regulations?

“What penalties will they impose if landlords do not sign up? If the penalties for failing to register are not high, then many private landlords might just not bother.

“Depending on what all this costs landlords, it could put more at risk of financial trouble or repossession as property prices are still falling, rents are stagnant and many landlords are struggling to remortgage because of high interest rates and, in some cases, negative equity. It’s possible that some might not be able to bear the extra cost.

“If landlords are forced out of business, it is hardly going to help with the Government’s objectives.”

The tenant: ‘We were scrutinised, but knew nothing about our landlord’

Becky Beth Ashton, 21, a final-year student at the London School of Economics, was recently thrown out of the North London flat that she was sharing with two others after her landlord was repossessed and the lender sent bailiffs to the door. They are now being housed in the university halls of residence.

She had no idea that her landlord was in financial difficulty and fully supports any measures that the Government introduces to protect other vulnerable tenants. She said: “The system is one-sided and biased in favour of landlords at the moment. As tenants, we had to undergo stringent credit checks and because we are students the landlord wanted references from our parents. Without clean records, the landlord would not let us sign the contract. But there was no way for us to request similar information about the landlord’s circumstances.

“Everything was done through a letting agent, so we assumed everything was above board.

“After my experience, I would definitely check a landlord register before renting a flat again.”

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