Legal Update 2023
Renters Reform Bill – Scrapping Section 21 Notices
This is still a proposal, nothing more, nothing less. The only thing seen so far is a white paper, outlining the Governments intentions which can be questioned on many fronts. It is still likely to be four to five years away before implementation, without taking into consideration a General Election which will have to take place by January 2025. So, if a landlord does ask what is happening, then I would probably say with reasonable confidence that nothing is happening this side of 2025. It is appreciated that the Government have said it will be introduced within 18 months (in their words before the next election), but it is more than likely that this does not happen.
Energy Minimum Rating – Band C or above
In truth there is nothing really in motion on this subject, apart from lots of froth and virtue signalling by politicians of all colours. The cost of getting to C or above for residential rental property will be colossal. It is not clear who is prepared to foot the bill of such works. It is unlikely to be the taxpayer (through grants) and there is a limit to how far rent increases can be pushed by landlords seeking to recover their costs. In terms of the landlord asking a question, nothing is set in stone, but it would be beneficial for a landlord to spend money getting a property to the highest possible rating, as it will make the property more attractive to current and new tenants.
Fire Safety Regulation 2022
A minor part of the regulations will come into effect for some landlords on 23rd January 2023. This in most cases will be ensuring occupiers have sufficient information about fire safety, and the processes to undertake in the event of a fire. With Phase Two of the Grenfell Tower Inquiry now finished, we are awaiting the final report, which may conclude that more work needs to be undertaken in relation to fire safety.
Energy Price Guarantee
This will increase from the current £2500 to £3000 from 1st April 2023, which means the typical household, should not pay more than this amount in 2023/24 (if they are using average consumption in an average sized house). Please be aware that that Energy Price Guarantee will end on 31st March 2024, and we will then revert to the originally used OFGEM price cap. This is currently running at £4279 per annum which in theory is the true cost of supplying us with fuel. (The Government are subsiding our use of energy currently)
Landlord Taxation
From 2026, all landlords with an income of more than £10k (before deductions) will need to submit all their tax returns quarterly and online. In effect this means 5 tax returns a year. This is all part of the Governments *Making Tax Digital* policy. In addition, Landlords allowance for Capital Gains when selling, will be reduced from 12k to £6k this year, and then to £3k from 2024.
