Though being a landlord is a fantastic way to make money, whether it’s something that you do full time or as way to increase your main income, it isn’t a role that comes without stress. Renting a property may seem simple, but there’s a lot to consider. With landlord and tenant laws in the UK constantly evolving, it is often difficult for landlords to stay up to date with relevant legislative changes. As a landlord, it’s important to stay on top of the law as failing to do so could result in fines and legal proceedings.
Recent Changes for Landlords and Tenants
- Landlords Can Claim Less Tax Relief on Their Mortgage Interest – Previously, landlords could claim a significant amount of tax relief on their mortgage interest at their marginal rate. However, this has recently changed. As of April 2017, landlords are only able to claim a maximum tax relief of 50% on their mortgage interest. This will be reducing even further in 2019, down to 25%, and it will reduce once again in 2020.
- Landlords Could Be Made to Join a Compulsory Arbitration Scheme – If current plans are to go ahead, landlords in the UK could be made to join a compulsory arbitration scheme and this could be a legal requirement. This is part of larger plans to improve the way in which problems between landlords and tenants are solved. If problems between the two cannot be solved, the scheme will provide tenants with a way to raise issues and disputes.
- New Minimum Energy Efficiency Standards Are in Place – Back in April 2018, new minimum energy efficiency standards were brought in. However, a lot of landlords where not aware of this change. Only properties with an energy performance certificate of E or above will meet these new minimum energy efficiency standards. If a property does not meet the standards, the landlord will not be able to renew or apply for a new tenancy until changes are made. If a landlord continues to rent a property without meeting these minimum energy efficiency standards, they are at risk of being fined.
These changes may seem small initially, but failing to make the necessary changes could result in bigger problems for both you and your tenants. Though being a landlord does come with its complexities, help is always available. At Audley Chaucer, we’re able to offer all kinds of advice to landlords. To find out more, get in touch.