As a landlord, it’s always important to try and be as prepared as you can for the future. Over the last few years, there have been some significant changes within the lettings sectors and this year looks no different.
Here are some of the things landlords should be aware of in 2023.
Changes in the Rental Market 2023
Fire Safety Changes
The beginning of the year saw changes to the Fire Safety (England) Regulations 2022 brought on by the Grenfell Tower Inquiry. These amendments will impact landlords with lettings in higher-rise and multi-occupied properties.
Fire safety is an obvious obligation for every landlord, so you should be up to date with these changes that came into force on 23rd January 2023. The main aim of this update is to improve the fire safety of blocks of flats in ways that are ‘practical, cost-effective for individual leaseholders and proportionate to the risk of fire’.
Capital Gains Tax Changes
From April 2023, the Capital Gains Tax tax-free allowance is being reduced from £12,300 to £6,000. This actually comes before a further reduction in April 2024, when the allowance is halved again to just £3,000.
This will have an effect on landlords selling their properties, especially buy-to-let properties. With higher costs on the horizon, many might want to look for other options to save themselves some money.
Rental Reform Changes
There has been multiple discussion held about the rental reforms and it is predicted they will be introduced this year, so it’s best to be prepared. Scrapping Section 21 evictions, introducing a Decent Homes Standard for private rental properties, and encouraging increased pet ownership among tenants are just some of the proposed changes.
Although it’s unlikely these reforms are to be introduced in 2023, it’s wise keep an eye out for any further developments. It seems scrapping Section 21 evictions is the top priority and there’s already been a consultation on introducing a Decent Homes Standard for private rentals.
Energy Efficiency Changes
From 2025, the minimum Energy Performance Certificate (EPC) rating is set to be increased for rental properties from “E” to “C”. Existing tenancies have until 2028 to comply with these changes, if not, landlords will be served with a penalty.
It is the landlord’s responsibility to find out how they can improve their property’s EPC rating and deliver the necessary improvements. By being aware of this, landlords will be able to budget efficiently in order to make these changes in the short-term to avoid losses in the long-term.
Property Cleaning Services for Landlords 2023
It is important for every landlord to keep up to date with regulatory changes that affect their rental properties and tenancies. Being prepared and keeping up to speed with amendments and announcements will give you peace of mind that you know what’s to come.