22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
Is your property portfolio Energy Performance compliant? It can feel like every time you turnaround the government is introducing a new bill that will impact the profitability of the rental market. The government is constantly balancing policy with customer safety, and it feels like private landlords often end up with the sticky end of the stick. Keeping up with new regulations is a constant source of irritation and, more often than not, cost. This latest proposal has come out of the Department of Business, Energy and Industrial Strategy in a consultation document released as part of a government initiatives to de-carbonise buildings in order to mitigate the effects of climate change. The proposal sets out that it wants EPCs on private rental properties to be Band C (or above) by 2025 for new tenancies, and by 2028 for all tenancies. Ok, it’s a few years off but the financial impact of making this happen could be huge if you have an older property with ageing appliances and heating systems. Legislation placing requirements on letting agents is already in place. This includes provisions contained in the Energy Performance of Buildings (England and Wales) Regulations 2012 (hereafter ‘EPB Regulations’) and in the Consumer Protection from Unfair Trading Regulations 2008. The difference now is there is a hard deadline for change. It’s time to consider a renovation strategy for your property that will help you spread the cost and maximise rental income. Being ahead of the game can reap rewards in the amount of income you can generate from your property. A well-presented, compliant property will deliver higher rental values and better-quality tenants. Even if you only have one property it’s important to think ...
Or does it? The government are saying that in light of the new increase in COVID-19 cases that the ban will remain under constant review. Even if the ban is lifted permanently the back log of cases in the courts is huge and bearing in mind they will have reduced capacity due to working to COVID-19 guidelines there really is little for Landlords to be enthusiastic about. Priority is being given to cases where rent arrears exceed 12 months rental (9 months rental where the rental income accounts for more than 25% of the Landlords income). Other priority cases are squatters, domestic violence, fraud, deception, illegal sub-letting and property abandonment. Two important points to remember... If you have an ongoing case you MUST remember to reactivate it with the courts. Failure to do so will lead to your case being dismissed.If you simply want to reoccupy your house or sell it you must give your tenants a minimum 6 months’ notice not the usual 2 months. (The tenants statutory rights will always prevail over anything that is written in a current contract) It looks like the second wave is coming, so please stay safe. ...
The Rental Market In general, the rental market seems to be recovering well with some of the big Portals like Rightmove and Zoopla reporting record high activity levels. However, there is still a lot of available property with central London hardest hit. Stamp Duty Holiday A specialist Buy to Let Mortgage Broker has advised Landlords to take advantage of the new Stamp Duty ‘holiday’ and buy now before it finishes on 31st March 2021. Investors will still pay the extra 3% but with properties under £500,000, but that is all you will have to pay! It’s a great time to add to your portfolio. Capital Gains Tax The Chancellor has ordered a review of CGT and many Landlords are worried that they will once again be a target of the governments need to recoup some of their huge recent pay outs. PropertyMark, which includes the NAEA (National Association of Estate Agents) and ARLA (Association of Residential Lettings Agents), have asked the Government to think very carefully before disincentivising Landlords. Eviction Ban The eviction ban ends in August which will be great news for some Landlords. However, if you started a case before August 3rd, 2019 then you must ‘reactivate’ it. You must inform the courts that you still wish to proceed, or the case will simply be discarded. The courts will have an enormous backlog and will prioritise Domestic Abuse cases and Anti-Social Tenant cases. It always has been PPM’s advice that you try, wherever possible, to resolve a dispute without going through the courts. Please feel free to ask my advice on any tenancy issues you...
What Has The Pandemic Taught Us and How Has The Market Changed?
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