Proposals for shared rented homes 'a tax on landlords'

Posted: 01 Feb 2010 10:18:26 GMT

New proposals, which will require buy-to-let owners to apply for planning permission if three or more unrelated people are living in one of their properties, are a "tax on landlords", one expert has stated.

Chris Horne, editor at Property Hawk, says: "It will create a huge amount of uncertainty for landlords looking potentially to buy property to rent out to multiple lets, resulting in a reduction in supply of letting property."

The plans, outlined last week by housing and planning minister John Healy, are hoped to tackle the issue of unsafe and substandard accommodation.

Mr Horne adds that the proposals, set to come into force by April, mean that landlords may be deterred from purchasing buy-to-let properties because they will not know whether they are likely to get planning permission to rent out to multiple tenants.

Similarly, the Residential Landlords Association reacted in a negative manner with Alan Ward, chairman of the group, calling the plans "deplorable and draconian".

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