A Regulatory Update in 2020
As a property professional, there are a lot of different things that you need to stay on top of. This is in order to meet your legal requirements. Furthermore, with the legal implications of property paperwork, you cannot afford to take your eye off the ball.
The Coronavirus causing much damage to the health and economy of the UK. This makes it easy for property professionals to forget about the new laws coming into force in 2020.
In this article, we thought we would assist property professionals by summing up all the changes that have occurred in 2020.
MEES for Energy Performance Certificates
The MEES regulations set a minimum energy efficiency level for private rented properties in England and Wales. The regulations came into effect in April 2018 with a grace period of two years.
All rented properties must meet the MEES, which is currently a rating of “E” on a valid EPC. This must be done no later than 1 April 2020. This means all landlords and agents must check their current EPCs to ensure they are compliant.
If the EPC has a rating or F or G, landlords have 2 choices. They must either carry out the necessary improvement works or apply for an exemption certificate.
Capital Gains Tax Relief
If any profits are made through the sale of a property that is not the seller’s principal home is liable for Capital Gains Tax (CGT). Current law allows owners the ability to seek a tax break. This was in the form of lettings relief if at some point, they lived in the property.
From April 2020, landlords are only able to claim lettings relief if they actively share the property with their tenant. In addition, landlords will be liable for the full amount of CGT owed on a sale within 30 days.
This is a considerably shorter period than the existing ‘next tax year’ leaving landlords with a significant cash burden.
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020
This regulation will require an EICR to be carried out by a qualified person every five years.
Landlords and agents must obtain a report of the results and supply it to new tenants. All landlords and agents must stay on top of this as the regulations will directly affect new tenancies starting from 1 July 2020. It was also effect existing tenancies from 1 April 2021.
Note that many types of tenancies will be excluded from the new regulations (such as student accommodation, social housing), but ASTs (assured shorthold tenancies) of are almost certainly going to be included.
Read our eBook for more 2020 Regulatory Changes
We have put together a handy eBook containing many of the 2020 regulatory changes. To download our book, please click here to be taken to our ebook page. You can also visit our facebook page for more updates.
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At Assessment Hive, we can help with all your assessments and certificates. Our assessors can visit and provide reports within just 24 hours. If any issues are discovered during an assessment, we can get it fixed quickly and easily. What’s more, if any reports do fail and need remedial action, we won’t charge you again for the pass certificate. We’re simply here to make being a landlord less stressful and more profitable.