Date: 09/04/2006

The property market is undergoing some radical changes and the future for the serious buy to let investor looks positive.

In April 2006, Houses in Multiple Occupation (HMO) now require a mandatory licence from the local authority. From July 2006, under the Housing Act 2004, it will be compulsory in the UK to keep tenants’ deposits safeguarded by a tenancy deposit scheme.

It will mean both Landlords and Agents will be more regulated and should help the few unfortunate people that sometimes loss their deposit unfairly. The HMO licence will raise the standard of accommodation for people living in HMOs such as students.

James Scollard from CLIFFTONS comments “The extra hassle of deposit schemes, licencing etc will drive some landlords out of the market and may deter new entrants. It will help the serious professional landlord, improve the image for the rental market and increase demand within the rental sector. This additional regulation is excellent and will benefit everyone.”

With a good economy, low unemployment and low interest rates, the property market is still very solid, with the average age for first time buyers now being 34, growing population and landlords selling due to the new regulations means the supply will be low and rental demand is ever increasing.

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