Published: 23/02/2023Are you a Landlord of a property in England?
The past few years have seen an increase in legislation and taxation for private Landlords and it is certain that this will not be reversed. However, rental demand is still strong, and rents are increasing year on year across the UK. Rightmove’s Rental Trend Tracker showed that across the UK rents increased 9.7% across the UK with the SW England seeing 5.4% and Wales seeing 7.1%.
Carbon monoxide monitors
Since 1st October 2022 these must be installed in any room where there is a fixed combustion appliance, including a gas boiler and anywhere there is a working fire (even if it is excluded from the tenancy), this includes fireplaces, any gas appliances and log burners. It is a legal requirement that you ensure that these alarms are working properly on the start date of the tenancy and throughout the tenancy . You are required to repair or replace alarms if you are informed that they are faulty.
All smoke alarms and carbon monoxide alarms have a ‘shelf life’ so make a note of their expiry date and diarise to change them prior to this ending.
Renters Reform Bill
It is expected that this will go before Parliament this year. The Bill aims to simplify tenancy structures. It will also see the abolition of ‘no fault’ section 21 evictions which has been a concern of Landlords, however, it is also aims to strengthen section 8. The introduction of a new property portal will ensure there is transparency for tenants and increase safety standards.
Energy Efficiency Upgrades
We are still waiting on further information about this, but it is expected that the minimum grade for letting will increase to band C for new lets and renewals expected from April 2026 or 2027 with the backstop to be 2 or 3 years later. The high cost cap will increase to between £5000 – £10000. However, it is still recommended that Landlords wait for confirmation of which dates will be included against the high cost caps on more expensive works such as solid wall insulation.
There is assistance available for tenanted properties that meet certain criteria.
Higher capital gains tax
The tax-free allowance for landlords selling a property will be reduced significantly from April 2023. This means you could pay more capital gains tax, so if you want to avoid it, and you are thinking of selling, better to sell sooner rather than later. There will be further cuts in 2024, meaning your tax relief when you decide to sell will be halved.
In 2022 demand for rented accommodation was tremendous. This year demand is still very strong. Fewer people can afford to buy due to the cost-of-living crisis and the hike in interest rates. It’s expected that Landlords will increase rents in order to cover costs but also to reflect the huge demand. Owing to this ongoing imbalance between the number of people who are looking for a home, and the number of properties to rent available, Rightmove predicts average asking rent for newly available properties will rise by a further 5% in 2023.
For further information on the above contact Jemma Corbett on 01600 712916 or Jemma.firstname.lastname@example.org