Your weekly lettings market update
Lettings News Round up – 14th April 2023
Hello,
Lots of announcements in March to take note of which may affect your property investment and lettings compliance requirements in the future. A new How to rent guide to give to tenants was released, capital gains tax allowance changing in April, new EPC regulations could be pushed back to 2028 and anti-social tenants facing a 2-week eviction notice. Read on for more details;
Changes to eviction notice periods for anti-social tenants
The government has announced that it will give landlords more power in the face of anti-social tenants - including reducing the notice for eviction of an anti-social tenant to just two weeks. The proposals are detailed in its Anti-Social Behaviour Action Plan, and are expected to be included in the Renters' Reform Bill, when it's introduced to parliament.
Delay to the changing EPC requirements
The Telegraph has reported that plans to increase minimum energy efficiency standards in private rented homes to an EPC band C on new tenancies by 2025 and for all tenancies by 2028 may be delayed. The expected new deadline is simply 2028 for all tenancies - this has yet to be confirmed.
Changes to capital gains tax from 6 April
Landlords selling their properties need to pay capital gains tax, which is calculated based on the difference between the amount the property cost originally and its value when sold. Some of this profit - Annual Exemption Allowance (AEA) - can be tax-free. However, the tax-free limit is going to decrease from £12,300 to £6,000 in the 2023-2024 tax year, from 6 April 2023. This means landlords will be paying tax on more of their profit. This amount will decrease again for the following tax year, dropping to £3,000.
New edition of the "How to rent" guide published
At the end of March 2023, the government published an updated version of the How to rent guide for tenants. This edition includes details about the new carbon monoxide and smoke alarm requirements and recent digital improvements to right to rent checks. It’s essential for any new tenants to receive the latest edition of the guide before the start of their tenancy, and for any renewing tenants too. Section 21 notices may be invalid if the guide wasn't shared with tenants at the right time.
Rental prices
Average rental prices continue to increase as you will see from the below graphs. Demand still outweighing stock and no sign of this changing.
Next Lettings update from me coming 20th April so look out for it and make sure you follow our socials and podcast. Details below
If you need any advice or help with anything lettings, then get in contact with me and I will be more than happy to help.
Thank you
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