The rental market in Stockport is a vibrant one. There is a suitable demand for rental accommodation in the town, and many investors have decided Stockport is the ideal area to develop or enhance their lettings portfolio. Given the rising prices in the south of the country and the current transport options in Stockport, it is no surprise that this area has welcomed many landlords and investors.
However, it is vital landlords are aware of regulations. There have been many changes to the industry in recent times, forcing landlords to review their working practices to comply with new rules. The Tenant Fees Act came into force on the 1st of June, and this has caused changes for local landlords and tenants.
Tenants should pay less when moving into rental property
The Act aims to lower the costs faced by tenants at the beginning of the tenancy, and then throughout the process. The removal of hidden charges from the letting process makes it easier for tenants to budget. There are concerns that landlords must now absorb expenses that would have been shared between tenant and landlord, and there have been calls for the Act to be monitored to ensure landlords aren’t being penalised.
There is a change to the security deposit that tenants provide at the start of the tenancy. This is now capped at five weeks’ rent when the annual rent is £50,000 or less. If the year rental payment is £50,000 or more, a cap of six weeks’ rent will apply.
Local council has commented on these changes
There has also been a change to holding deposits, capped at one weeks’ rent. These changes have been welcomed by the local council, who believe the changes will provide tenants with more significant support and transparency when renting.
Councillor Sheila Bailey is the Cabinet Member for Sustainable Stockport, and she spoke about the changes, saying: “High deposits and letting fees can make properties harder for people to afford and are often hidden – making prospective tenants unaware of the true costs of renting a property. This new Act is really positive news and will ensure that renters in the private sector get a fair deal and are protected from paying excessive charges.”
While many people look to buy property in Stockport, the demand for rental property is also strong. The Tenant Fees Act impacts the property market, and it is vital landlords and tenants are aware of the new regulations.
With convenient transport links to the centre of Manchester, and significant developments taking place, Stockport is the ideal place to buy, live or invest. As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/