We rent out my ex-residence since DH and I moved away. It's got 3 bedrooms but one is quite small. New tenants moving in this week (using all 3 bedrooms) on a one year AST.
A week ago the EA told us about the council's new requirement for a licence for registration for smaller flats - it's only in some councils.
We have to get a licence before the end of this tenancy which lasts 5 years and the cost (£1000) is obviously OK to take out of 5 years' rent.
However the third bedroom is too small for an adult sharer under the licence. I think they'll give us the length of this tenancy as leeway to sort it out.
But the EA must have known the regulations were coming in and yet took our/the tenants' money for what is essentially an illegal tenancy.
And we can't let it out to three sharers (we'll be fine with a couple/family but they of course will draw less commission
) after a year or so, so the 5 years licence will be very expensive for a year.
Seems mighty convenient for the EA.
Not sure what we can do but anyone think a stern letter from the solicitor would help?
Would the AST be null and void because it's not covered by the licence?