"Perhaps not quite applicable to the licence issue but here is a tale from Sweden where I now live. In Sweden, as I private landlord you can sign an agreement with a prospective tenant to agree the amount of rent to be paid. There is a lack of rental properties in Stockholm so finding tenants is not a problem. But, let's say you agree on a figure of £1000/month which might be £200 more than what other similar properties cost. However, your tenant really wants to live there and signs up to that price. They can live there for some time and then may dispute the amount and can claim back the difference as the rent is deemed to be above the regulated rented market price. So, the landlord ends up having to pay back the £200 x however many months even though the tenant signed a legal agreement to pay the full whack.
Sweden is essentially a socialist/capitalist country and when it comes to property rental and people do not pay as high rentals as in the UK. There are all sorts of authorities which set what rental prices should be - not market driven although becoming more so. However, in the centre of the city there is a mixed sector. Pulic sector workers can still afford to live in the city and these is less social separation than in many British cities. Less crime as well...."
Thanks for these observations Lesley. I'm sure the British private rental sector could learn a lot from other models around the world. Feel free to post your international experiences of renting or letting residential property in other countries.
Landlord insurance - an informed choice
Seems the Sweeds have some funny ideas anyway.
ReplyDeletehttp://www.theregister.co.uk/2010/02/01/cruel_revenge/
It would seem to me that if accommodation is so short a tennant would be wise to consider their options if they were to try that one. I suspect along with their refund would be a letter of notice. Also is there a statute amount of time they could claim back the difference?
It would be interesting to know more about how the Swedish system works. One observation from Lesley is that there are 'no shortage of tenants' seeking rental accommodation. In other words is there a shortage of supply? If there is I wouldn't be surprised. I wouldn't like the prospect of having agreed a rent with my tenant to be told that it was too high and then have to refund the difference. I suspect neither do a lot of potential Swedish landlords. The result is they get out and sell up. What you end up with is a lack of supply and rising rents that are artificially kept low. This is exactly what happened in the UK as a result of the Labour Party's policy of regulated rents introduced during the 1960s & 70s.
ReplyDeleteThat's pretty much how it was in the UK during 1977 - 1988, why do we need to look at Sweden? They probably copied it off us!
ReplyDeleteI was not defending or advocating the Swedish system by the way. Just presenting a different perspective. It shocked me when i read about it and in the broadsheet and then asked my husband about it.
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