UK PROPERTY MARKET - February 2023 regulatory round-up

There is so much compliance to 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 best-known timetables for other proposed changes and new regulations.

ALERT LEVEL: TAKE ACTION

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 became an act on October 27th. In recent weeks the protections for tenants have been extended including (subject to parliamentary approval) from April 1st 2023 rent rises will be capped to 3%. Read the rest here.

The measures are now “intended to be extended to September 30th” with the option for them to be extended for a further six-month period.

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.

ALERT LEVEL: BE AWARE

HOLIDAY LET BUSINESS RATES

From April, new eligibility rules for business rates will apply to self-catering properties in England and Wales will come into force. If your property does not match the new criteria you will be eligible for paying Council Tax.

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 licenses. 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.

MAKING TAX DIGITAL

Previously coming into effect in April 2024 has now been kicked back down the road for landlords until 2026. Making Tax Digital will require 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.

ALERT LEVEL: WATCHING BRIEF

DAMP AND MOULD REGULATION FAST-TRACKED?

Proposed legislation in memory of a toddler who died in social housing after being exposed to serious and untreated mould and damp is going to be “tabled as soon as possible” according to reports quoting Housing minister Felicity Buchan. “The proposed law aims to make sure that landlords respond to complaints about damp and mould quickly and with the proper regard to risk to health,” Buchan told MPs in the House of Commons, adding they are working proposals “as soon as possible”.

THE RENTER’S REFORM BILL

The reappointed Secretary of State for Levelling Up, Housing and Communities 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 and the creation of a landlord register. The bill is making its way through parliament and is expected to become law by Spring 2024, but it could be sooner.

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

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