Paragon Mortgages warn accidental landlords

9 April 2009
 

Landlords who are letting property so they do not sell their home at a big loss are helping support the supply of housing according to Paragon mortgages.
 

They also warn the same landlords that they should make sure they understand the regulation and legislation that effects them in the buy to let sector.
that many of these landlords may be ignorant of the large number of regulations involved in letting property. There are many acts of parliament governing the private rented sector and many buy to let investors face fines for not complying with these legislative acts.
 

John Heron, Paragons MD, warns ‘The onus is on the landlord to make sure they comply with all regulations and they are liable if something goes wrong, even if they employ the services of a letting or managing agent. Ignorance of legislation is not a defence.’
 

‘People that are letting out property they have been unable to sell are unlikely to have a detailed understanding of the legal requirements they have to comply with. For example, do they have an Energy Performance Certificate for the property or do they have a Gas Safety Certificate? What have they done with the tenant’s deposit and have they got adequate insurance in place? Failure to comply with certain regulations could not only result in heavy fines, it could also mean a custodial sentence.’
 

It is also very important that insurers and mortgage providers are aware a property is let.