What does Brexit and recent changes in the private rentals industry mean for UK landlords?
Brexit is underway and no matter how you feel about it, it’s sure to have an impact on buy-to-let landlords and the UK property scene as a whole. After years of uncertainty, the British property market is beginning to adjust to the changes that will occur now the United Kingdom is going through the process of leaving the European Union. Also, various pieces of new legislation, such as new energy efficiency rules, changes in tax relief status and bans on tenant fees, require landlords with UK properties to be up to speed with more information than ever before.
But what does Brexit mean for UK landlords? The immediate news is that the housing market looks set to flourish from here on in. Most markets dislike uncertainty, so the simple fact that Brexit is now happening, after three and a half years of an unsettled political climate, means there is a clear path ahead. This has led to an increase in house sales as both buyers and sellers take advantage of the return to stability. Subsequently, buy-to-let investors are beginning to become more willing to increase their housing portfolio.
However, the recent stalling of the property market wasn’t only due to Brexit, it was also affected by the changes to buy-to-let stamp duty rules, mortgage interest tax relief cuts and the ban on charging tenant fees. It’s also worth being aware of upcoming tax changes that come into effect in April which means buy-to-let landlords will have to settle any capital gains tax within 30 days of completing a sale - as opposed to previous rules which gave up to 22 months.
Not only this, Minimum Energy Efficiency Standards (MEES) are also being implemented in April, meaning unless properties reach these ratings they cannot be rented to tenants, unless an exemption is sought. Similarly, new electrical safety standards for the private rented sector are going through parliament, and if approved will be implemented in June 2020.
Many landlords are not aware of all these changes and are likely to be hit with heavy fines unless they both brush up on all this new legislation and ensure their properties come up to scratch. We know this can seem like a major undertaking, so it’s worth speaking to our team at homes4u about how to navigate all these changes. You can take the stress out letting your properties by having an award-winning team with over 30 years of experience look after your tenancies.
With this in mind, we at homes4u have set up a free event on Saturday 14th March designed to give helpful information for everyone involved in the rental industry, whether you’re a first-time landlord; looking to grow your property portfolio; or already have multiple properties. There will be four leading industry specialists speaking at this seminar, each followed by a Q&A so you can understand more about these major changes to the letting industry.
For more information and to register for a free ticket go here.