April: Landlord law regulatory round-up

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.

(The below is intended as a guide to help you stay on track, as always consult with experts such as accountants and financial advisors before making an decisions.)

NEED TO KNOW SCALE: TAKE ACTION

HOLIDAY LET BUSINESS RATES

From April 1st, new eligibility rules for business rates have applied to self-catering properties in England and Wales have come into force. 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

Existing landlords of properties in Scotland should now have applied 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 licenses. The deadline was April 1st.

EVICTION BAN EXTENDED, NEW RENT CAP – SCOTLAND

The Emergency legislation brought forward in Scotland under the Cost of Living (Tenant Protection) Bill 2022 to freeze rents and eviction ban until March 21st, 2023 was passed on October 6th and became an act on October 27th. The protections for tenants have now been extended meaning, as of April 1st 2023, rent rises have been capped in the PRS sector to 3%. Read more on p16.

NEED TO KNOW SCALE: BE AWARE

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 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 responsible for ensuring rental regulation compliance.

WELSH RENTAL OVERHAUL NOW IN EFFECT

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

NEED TO KNOW SCALE: WATCHING BRIEF

SOCIAL HOUSING BILL IN FINAL STAGES

The Social Housing (Regulation Bill) is now in the final stages awaiting a date for consideration of amendments prior to Royal Assent. The law will require social housing managers to gain professional qualifications and allow the reglator more powers to to enter properties with only 48 hours’ notice and make emergency repairs with landlords footing the bill.

RENTAL REFORM BILL – ‘COMMONS IN TWO MONTHS’

Housing minister Michael Gove has said that the Renter’s Reform Bill, which is set to abolish Section 21 evictions, is going to be introduced to Parliament within two months. Read more on p6.

EPC CHANGES

According to reports, landords will now have until 2028, as opposed to 2025, to upgrade their properties to EPC for all tenancies.

HOLIDAY LET REGULATIONS

Gove also stated in a Commons debate at the end of March that the government will be “bringing forward some planning changes to the Levelling-up and Regeneration Bill which are intended to ensure that we have restrictions on the way in which dwelling homes can be turned into Airbnbs”. Unlike the Renter’s Reform Bill which has yet to enter the Commons, the Levelling-up and Regeneration Bill is currently on the committee stage in the House of Lords.