HAPPY NEW YEAR!

OUT WITH THE OLD...

What's new for the decade?

Are you Efficient?

ONLY 3 months left to comply with new EPC Rules. From 1st April 2020, the Energy Performance Certificate (EPC) rules that came into force in April 2018 will expand to include ALL existing tenancies, not just new ones. 

That means if you have a property rented with an EPC rating of F or G, you could face fines of up to £5000. Hence, you have less than 3 months to make any necessary improvements and get your property reassessed with a score of at least E or above. If you have made improvements since your last certificate, it will need to be upgraded to show the improvements made. 

The improvements required could be considerable, and we expect our Property Fix team to be very busy near the deadline. So we'd recommend booking any work as soon as possible if this applies to you. 

Are you Tax Aware? 

At the end of this current tax year, 2019-2020, mortgage interest tax relief will be completely phased out. Since 2017, the amount of relief allow for expenses has reduced annually by 25% meaning from this April, no interest costs are allowed as expenses. This will no be 20% across the board!

Zero Deposit? But you get 6 weeks security...

Zero Deposit is an affordable alternative for tenants when moving and effectively provides landlords with a guarantee purchased by the tenant, meaning they still have "skin in the game". 

This provides an equivalent of 6 weeks security for a landlord, remains in place for the duration of the tenancy and is partnered with the dispute service. Tenants still have to be referenced and pass affordability, so we stay in control of the quality of applicants. If they do not meet their obligations at the end, Zero Deposit step in and pay up. They then chase the tenant for any monies, as it is insured through them. 

The advantage to this is that the product is as safe as cash with more cover, speeds up the rental process for tenants, has less bureaucracy and dispute resolution is governed in the normal way.

So long Section 21 Evictions?

It is probably realistic that changes to the Section 21 no fault evictions will be rubber stamped this year after the Conservatives pledged to end the current process. Any new implementation may take years to progress but it is worth noting now. Any eviction will then have to be reinforced by the use of Section 8 and its many and possibly newly updated grounds for use? 

Generally, the Lettings industry is and will become even more regulated and the need for a strong technically minded team of Management experts such as Urban Residential is crucial for optimum investment. 

DID YOU KNOW?

• Deposits are capped at max. 5 weeks rent (below £50k per annum) and you can no longer take an extra deposit for pets if it takes it beyond the above!
• Right to Rent checks were ruled discriminatory last year and are currently being reviewed.
• From 1st April 2020, it will be illegal to let or lease a residential or commercial property with an EPC rating of F or G!
• Since the Tenant Fees Act in June 2019, the maximum Holding Deposit that can be taken is 1 weeks rent and should be held for no longer than 15 days.