It’s crucial that Landlords stay up to date with legislation and regulation changes within the property industry in order to ensure their tenants are safe, avoid any costly penalties and maximise the return on investment.
With 2022 in full swing, here are the key dates landlords need to be aware of this year.
1. Tax Relief Credit Changes
January 31st is the deadline for online self-assessment tax returns for the 2020-2021 tax year. It is also the first one whereby the new mortgage interest tax relief credit applies. This means landlords can now only offset 20% of their mortgage interest payments when filing their tax return.
2. Rules on Allowing Pets
In January, the government launched a new Model Tenancy Agreement meaning landlords could no longer issue blanket bans on tenants having pets in England. Landlords must now object in writing if they receive a pet request from a tenant and should only reject tenants with pets if there is ‘good reason’.
3. Energy Price Cap Increases
In February 2022, the government is expected to announce how much the energy price cap is likely to increase by which will be effective from 1st April 2022 causing energy bills to rise accordingly. Landlords should be mindful of this, especially those with HMO’s as this could affect profit margins.
4. Right to Rent Checks
Until April 5th 2022, temporary right to rent checks can still be carried out over video calls and tenants can send scanned docs or photos for checks using email or over mobile apps.
5. Extra Time for Capital Gains Tax
In the Autumn Budget, the Chancellor announced changes to the filing deadlines for reporting and paying capital gains tax (CGT) when selling a property. The change, which has now come into force, means sellers have 60 days to report and pay CGT when selling a buy-to-let property, rather than the 30 days.
Other things for landlords to look out for in 2022…
6. Eviction and Lifetime Deposits
In 2019, the government discussed abolishing Section 21 – a clause that means landlords can end rolling tenancies with only two months’ notice without giving a reason. Section 21 is part of the Renters’ Reform Bill which also includes plans to replace tenant security deposits with a ‘lifetime deposit’ that moves with the tenant. Due to the ongoing pandemic, a final decision has is to be made, however, the government says it will publish a white paper on the proposals in the new year.
7. Energy Efficiency Rules
Although it is still not clear, the government is set to roll-out plans to improve energy efficiency in the private rented sector in 2022. Currently, landlords have until 2026 to ensure all newly-let properties have a band C energy performance certificate and existing lets have until 2028 to meet the requirement. Landlords should be mindful of this if their property is currently rated lower than band C and carry out the relevant refurbishments to increase the rating.
8. Green Mortgages
With a strong focus on energy efficiency, the Bank of England is starting to subject UK banks to ‘climate-related stress tests’ with some lenders already incentivising property owners to be ‘greener’. Green Mortgages can provide more attractive deals for properties rated ‘C’ or above on the EPC. That means landlords with less energy efficient properties will be potentially paying higher premiums in comparison.
9. Inflation and Buy-to-Let Mortgages
Buy-to-let mortgage rates fell in 2021, but with inflation likely to remain high and with any further increases of the Bank of England’s base rate - landlords may experience higher mortgage rates in 2022.
Are you looking to start or scale your property portfolio in 2022? At Ramsay & White, our award-winning team can help you secure the best property finance to make your investment a success.
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After completion, we provide continued support to all of our clients, answering any questions you may have and help with any of your future property finance needs.
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