March Regulatory Round-up - landlord compliance

There is so much compliance in being a landlord nowadays, so here is our regulatory round-up - the latest main developments that you need to be aware of, along with the bestknown timetables of other proposed changes and regulations.

This is intended as a guide to help you stay on track, as always consult with experts such as accountants and financial advisors before making any decisions

ALERT LEVEL: TAKE ACTION

DEADLINE LOOMS FOR ATED REVALUATIONS

Under the government’s Annual Tax on Enveloped Dwellings (ATED), companies must revalue UK residential properties every five years. The next deadline for this is April 1st, 2023, and companies must tell HMRC if they have a property that is worth more than £500,000. The valuation, which can be done by the owner or by a professional valuer,must be based on the value of the property on April 1st, 2022 and sets the rate for the annual payment until the next revaluation year. Properties worth between £500,000 and £1 million incur a charge of £4,150, which increases to £28,650 a year for properties valued between £2- to £5 million.

HOLIDAY LET BUSINESS RATES

From April, new eligibility rules for business rates will apply to self-catering properties in England and Wales. If your property does not match the new criteria you will be eligible for paying Council Tax, though depending on the rateable value, there may well be a benefit for holiday let owners who qualify for small business rates relief.

DEADLINE FOR SCOTTISH SHORT-TERM LET LICENSES

April 1st is the deadline for existing landlords of properties in Scotland to apply for short-term let licences. From October 2022 it has been mandatory for all new landlords renting out properties on a short-term basis in Scotland to apply for the licences.

EVICTION BAN EXTENDED, RENT CAP – SCOTLAND

The Emergency legislation brought forward in Scotland under the Cost of Living (Tenant Protection) Bill 2022 to freeze rents and establish an eviction ban until March 21st, 2023 was passed on October 6th and became an act on October 27th. The protections for tenants have been extended meaning (subject to parliamentary approval, at the time of writing) from April 1st capped rent rises to 3% (PRS) will be permitted.

ALERT LEVEL: BE AWARE

WELSH RENTAL OVERHAUL NOW IN EFFECT

The Renting Homes (Wales) Act 2016 came into effect on December 1st. The grace period for compliance comes to an end on May 31st.

MAKING TAX DIGITAL

Previously coming into effect in April 2024 has now been punted back down the road for landlords until 2026. Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) previously would have required landlords earning more than £10,000 to use MTD-compatible software to keep records and make four quarterly submissions and a final one to HMRC a year.

RENT TO RENT RULING

A landmark Supreme Court Ruling at the start of March has set a legal precedent that should effectively ensure rent-to-rent operators, as opposed to property owners, are held responsible for compliance.

ALERT LEVEL: WATCHING BRIEF

DAMP AND MOULD REGULATION

The government has tabled amendments to the Social Housing (Regulation) Bill to introduce ‘Awaab’s Law’, which will require landlords to fix reported health hazards within specified timeframes. A consultation will be launched later this year to set the timeframes. There have been calls for the proposed regulations to be extended to the PRS.

THE RENTER’S REFORM BILL

Michael Gove late last year reaffirmed his commitment to The Renter’s Reform Bill this year. The bill outlines wide-ranging changes to the private rental sector across England including the end of Section 21 evictions, the introduction of a privately rented ombudsman and the creation of a landlord register.

EPC CHANGES

Under proposals from the government all new tenancies will require an energy performance rating of C or above and existing tenancies from 2028.

REGISTRATION SCHEME FOR SHORT-TERM HOLIDAY LETS

In early December Prime Minister Rishi Sunak confirmed during PMQs that the government is committed to introducing a registration scheme for short-term holiday lets in England.

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