1. Reforms on eviction
The Renter’s Reform bill is on the cards, and it proposes reforms like abolishing Sec 21. This will do away with the clause that allows landlords to end rolling tenancies just by giving a 2-month notice without assigning reasons. It also proposes a lifetime deposit to replace security deposits and publicize the rogue landlord database.
2. Improved energy efficiency
All new properties would need to achieve Band C energy performance certificates by 2026. There was a plan to have a cap of 10,000 pounds for upgrade costs, but at present, there are no updates on this.
3. Green mortgages are trending
Green mortgages for energy-efficient properties are trending. It is a niche market that is going to increase thanks to cheaper rates for property investors. Banks are also willing to offer loans with lesser rates for such properties.
4. Tax changes
31st January is the deadline for the self-assessment tax form 2020-21. While filing the returns, landlords can only offset 20% of the payment for mortgage interest. Earlier, landlords had 30 days to report and pay the capital gains tax bill after selling a to-let property. Now the time is increased to 60 days.
5. Pet-friendly is in
A problem tenants faced was landlords who refused to entertain pets. If you are a landlord, you must know that the Model tenancy agreement makes it impossible to ban tenants with pets without cause. For example, if your property is too small to have a pet, then you can deny, else, you need to entertain tenants with pets.
6. Short-term lets are not so easy
In Scotland, short-term lets through the likes of Airbnb are no longer going to be easy. Licensing would be required. Once the licensing schemes are drawn out, landlords need to apply for licensing to avail of short-term lets.
7. Carbon monoxide norms
When homes use fires for heating or gas boilers, there is the risk of carbon monoxide leakage. To alleviate this risk, there are now new rules in place. Carbon monoxide alarms are now compulsorily required whenever a new appliance is installed.