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Landlords can expect a steady stream of regulation as the Government remains focused on this sector of the property market. Amazingly, there are now over 160 laws that affect landlords.
As a market leader in London lettings, we keep fully up to date with all relevant legislation and are used to dealing with everything on behalf of our landlords.
We make sure that all our staff are well informed about all the latest law and best practice, so please speak to any one of our offices if you have any queries.
Here’s a handy guide to some of the latest legislation.
Right to rent
Under the Immigration Act 2014 and the 2016 amendments, all landlords have a responsibility to check that their tenant has a legal right to reside and work in the UK. As part of our detailed vetting of tenants, we carry out this check at the start of every tenancy and again throughout the duration of their occupancy. We ensure our employees are continually updating their knowledge of such regulations to make sure that our landlords do not fall foul of this law.
Tax
Until April 2017 all landlords have been able to claim tax relief on any mortgage interest payments. However, the Government have made the decision to gradually cut back mortgage interest tax relief over the next few years, so by 2020-21 the maximum tax relief a landlord will receive is 20%.
Maximising occupancy and therefore rental income has never been more important and our managers are experts at ensuring 100% occupancy for our clients. Our property managers have been advising our landlords how to keep their properties in great shape, ensuring we attract the best quality tenants at a good price.
If you have any questions about how these changes may affect you, then please speak to your local manager or property manager.
Licensing
As part of the drive to improve standards in the private rented sector we have recently seen an additional licensing scheme introduced by Ealing Council. If you own or manage a privately rented House in Multiple Occupation (HMOs) in Ealing that is two storeys or more, it is now a legal requirement to obtain a property licence. Ealing council have also introduced a selective licensing scheme in certain areas of the borough where all properties will require a licence to let. Our property managers have been in contact with all of our clients in this area to provide support in applying for these licences.
If you are concerned that your property may require a licence, please contact your local office who will be able to advise you.
Energy efficiency
Any tenanted property must soon have a minimum Energy Performance Rating of E as measured on their Energy Performance Certificate (EPC). From April 2018 we will not be able to grant a new tenancy or renew an existing tenancy if the energy efficiency of a property is graded F or G, as detailed on an Energy Performance Certificate.
We have very few properties affected by this legislation and are working with any landlords needing help. As energy costs increase, tenants are starting to take more notice of a property’s running costs, and heating and lighting are inevitably the main focus. In our efforts to maintain properties and ensure they make a good rental return in the long term, energy efficiency is just one of the many areas that we are happy to look at for landlords in maintaining and improving their property. If we can help in any way, then please contact any of our offices.
Housing White Paper proposals
Potential ban on tenants sharing costs with Landlords
At Dexters we have always tried to keep any charges to tenants as low as possible to make sure that we attract the highest number of potential tenants for your property. We make sure any financial contribution from a tenant has been transparent before they consider renting through us and relevant to the work we carry out on their behalf.
Unfortunately, some agents have based their business model on tenants paying a much larger share of the charges and we believe this poor practice is due to the lack of any proper regulation in the industry.
We are regulated by RICS, members of ARLA and adhere to the highest standards in the industry, including the London Rental Standard. Therefore, whilst we do not agree that a ban on all charges to tenants is the correct answer, it is a welcome first step towards licensing and regulation.
We will keep you fully informed as and when more information becomes available from the Government.
Client money protection
We are pleased that the Government has announced that it intends to take action to make client money protection mandatory for all lettings agents. However, this still falls a long way short of proper regulation of lettings agents and full protection of all Landlord money and tenants' deposits. In our view far too many agents look credible yet are operating illegally.
At Dexters we protect all client money with the RICS Clients’ Money Protection Scheme.
Mandatory electrical safety checks
We agree that an electrical inspection should be carried out every five years in all private rented properties and would welcome legislation making this mandatory. Our property managers regularly inspect every property we manage and make recommendations to our landlords, including improving the presentation of the property and ensuring the safety of our tenants.
Our property managers are strategically located across London allowing them to visit the properties they manage easily and regularly. They are on hand to help and guide any of our landlords. Whether you are a first-time landlord, an experienced investor or a freeholder looking for a block manager, we can definitely help.
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