Buy-to-let investors must factor in another risk in yield calculations with news the government is proposing compulsory protection of tenants' deposits in the Housing Bill currently going through Parliament.
Housing minister Keith Hill says 20% of tenants have suffered from landlords withholding deposits without good reason, hence the proposed new legislation. The Bill intends a single government sponsored protection scheme, however, it may be that professional and trade bodies can provide schemes of their own if government approved. The Bill also offers councils powers to take over the running of an estimated 300,000 long-term empty residential properties across England, including powers to deduct costs of renovating properties to liveable standards. Research into the problem of empty...
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