This week, we're looking ahead to 2023 and what it could have in store for landlords like you.
Here are three major things we believe landlords need to watch out for:
1. Renter's Reform Bill will offer tenants greater protection
The biggest changes in the private rented sector are still expected to go ahead this year. The Government has continually outlined it's commitment to the bill and getting it pushed through before May, in which case, we could see the various new legislation come into law before the end of the year.
This will include bringing an end to Section 21, no more blanket bans on letting to tenants with pets, or families with children or on benefits. Notice periods for rent increases will also double and tenants will be able to challenge increases they feel are unfair.
2. Capital gains tax cuts
With 1 in 5 landlords looking to offload at least one property this year, it's important to watch out for the capital gains tax changes. Right now, you can sell a property and take £12,300 profit tax free. After 6th April, this will be more than halved to just £6,000. And after April 2024, it will be halved again to just £3,000 tax free.
If you're planning on selling a buy-to-let property, it is best to do so in Q1 rather than wait until later this year
3. 3 in 4 tenants are worried about paying their rent as we enter the recession
It was reported towards the end of last year that over 75% of tenants were worried about how the cost of living would impact their ability tio pay their rent each month. With the cost of living crises showing no signs of stopping, it will be vital to have some form of rental insurance or guarantee on your monthly rent.
If you're worried about, or have any questions on the issues discussed in this email, please click below to book in a time to speak to our team.
