1 - Electrical Safety Inspections
These requirements came into force on 1st June 2020. All properties must have their electrical installations inspected every 5 years. These reports must be retained and provided to the tenant. You can read more about this in the below link from the NRLA.
Electrical Safety Inspections
2 – Evictions Ban
While the current eviction ban ended on 21st Sept, this had been extended for 4 weeks. Landlords will now be required to give their tenants 6 months notice to leave a property. This will give tenants further protection over the winter months.
From 8th July 2020 to 31st March 2021 rates of Stamp Duty Land Tax have been reduced to help stimulate the market. This means any 1st time purchases up to £500k will pay no stamp duty. Landlords and investors will also benefit from reduced rates with only 3% payable up to £500k.
Stamp Duty Land Tax
4 – Section 24 now fully in force
The tax relief that landlords can now offset against finance costs is now reduced to 0%. This means no finance costs can be offset impacting higher rate taxpayers significantly. Anyone with a mortgage will only be able to benefit from a 20% tax credit. Therefore, Landlords will need to look at more efficient ways to manage their portfolio and turn a profit.
Landlord tax relief
Since Oct 2008 all rented properties have been required to have an EPC, with new ones required every 10 years. Since April 2020 all properties for new and existing tenancies must have a minimum EPC rating of E.
Energy Efficiency Standards
6 – Section 21 changes
The govt has proposed to abolish no fault evictions. This means Landlords will have to give specific reasons to regain possession of their property.
No fault evictions
Tips and reminders
As a Landlord, it’s imperative you keep up to date with all industry changes to ensure you stay within the law when managing your property investment. In some cases, change provides an opportunity to better your business, so keeping on top these updates and navigating the ever-changing market will ensure you stay at the top of your game.
“In a chronically leaking boat, energy devoted to changing vessels is more productive than energy devoted to patching leaks.” —Warren Buffett
- If you are a Landlord, research all requirements to let a property. if you are not sure ask specialist suppliers or your agent for advice and direction.
- As a Landlord do not take the risk and turn a blind eye to your legal obligations to letting your property, if in doubt ask.
- As an agent ensure you and your staff are fully up to date on all industry and regulatory changes. This will ensure you do not fall foul of anything that could give rise to reputational risk.