New Landlord Regulations: What You Really Need To Know
The government has changed the regulations surrounding rentals in the private sector so often that 1 in 4 landlords admit to being confused. Keeping on top of all the changes can be costly and stressful. If you don’t have a letting agent helping to guide you, it can be easy for things to fall through the cracks.
Recent surveys of landlords have shown that a worrying number are unaware of some important changes that are coming up. Depending on your situation, missing some of these deadlines can lead to hefty fines. Some landlords are so worried that many are considering selling their rental properties and getting out of the buy to let market altogether.
What Changes Do You Need To Be Aware Of?
There are three changes that all landlords should be aware of:
- The new smoke and carbon monoxide alarm requirements
- Deadline change for Capital Gains Tax filing
- Planned increases to minimum EPC ratings.
Smoke And Carbon Monoxide Requirements
In November 2021, the government changed the regulations around smoke and carbon monoxide detectors. Landlords now have more obligations to their tenants. Before the changes, landlords had to fit smoke alarms throughout rental properties. The old rules required carbon monoxide detectors in rooms with solid fuel burners, such as fireplaces.
Following the changes, they now have a responsibility to fit carbon monoxide detectors in any room with a fixed combustion appliance. This means rooms with gas boilers will now need a carbon monoxide detector. However, gas cookers are an excluded appliance, so they do not need a CO detector.
If an alarm is faulty, then it is now the landlord’s responsibility to repair or replace it.
Change To Captial Gains Tax Filing
In the past, after selling properties, many landlords were surprised by the unexpected need to file and pay Capital Gains Tax on their properties. Many were unaware of the requirement before selling their properties and were struggling to get it sorted within the 30-day time limit allowed. Since Autumn 2021, the government has doubled the deadline. This means that you now have 60 days from selling a residential property in the UK to file your Capital Gains Tax information.
Expected Changes To Minimum EPC Rating
Since winter 2020, the government has been consulting on changes to minimum EPC ratings for rental properties. Currently, the minimum rating is E. In the consultations, the government are suggesting an increase to C by 2025.
This is a significant increase and will place a financial burden on many landlords, especially those with older properties. Knowing that the changes are coming gives landlords a chance to start preparing. If you are doing work on any of your properties, you may want to consider bundling in work on energy efficiency.
If you have not had a recent EPC assessment, you may want to get one. An up to date assessment will let you know where you stand. An assessor can also help identify what needs doing to meet the new standards. Contact us to arrange a meeting with one of our specialist assessors. We can help you get ahead and avoid being caught out when the changes come in.
