2022 has so far seen some major changes laid out for the private rented sector, mainly in the Queen's Speech on May 10th, and the Renter’s Reform Bill in June.
Whilst none of these changes have dates set in motion as to when they will come into effect, there are still plenty of key dates to put into your calendar for the remainder of this year & the next.
Here’s what’s on the agenda:
August 26th - Next energy price cap announcement
The current increase in the energy price cap in October is expected to take it to £3549. However, with Liz Truss announcing new measures for households to help with their energy bills, the average yearly energy bill paid for by the homeowner will be £2,500, with the Government set to make up the difference.
September 30th: End to COVID right to rent checks
Right-to-rent checks could be completed over video, with photos of documents rather than the originals also being used in tenants referencing throughout the pandemic. These measures will remain an option until the end of September.
This has been done to give agents & landlords more time to select their ID validation technology providers as we go into the upcoming year. The previous date for this to happen was at the start of the current financial year in April 2022.
October 1st:
New regulation on carbon monoxide & smoke alarms to come into force in England & Wales
Expected to come into force from October are new regulations regarding carbon monoxide & smoke alarms. Previously, properties with any room used as living accommodation that had solid-fuel-burning combustion appliances were required to have an alarm in them. This will now be updated to any room that has a fixed combustion appliance such as gas cookers.
These regulations will also now apply to social housing as well. Landlords will also need to replace or fix faulty alarms as soon as “reasonably practicable”
New energy cap will take effect
We mentioned earlier that the energy price caps will be announced in August. On October 1st they will take effect. With the bill now being at £2500 per year for the average household due to the Government making up the difference to the £3549 cap, it will be important for you and your letting agent to manage your tenant’s financial situations and ensure they can continue to make payments on time
December 1st: Renting Home Act 2016 (Wales)
In December regulations in Wales will come into effect that aim to make it easier & simpler to rent a home. This involves landlords giving notice 6 -months prior for no-fault evictions, and no no-fault evictions can be served in the first 6 months of the tenancy.
April 1st 2023: Second Home Tax Loophole to Close
There are many second homeowners who can claim business rate relief on their second property, but they will now need to rent it out for a minimum of 70 days per year and have the property available to rent for a minimum of 140 days per year to keep access to the relief, rather than pay council tax on the property.
To Be Confirmed:
Minimum Standards For Energy Efficiency
It is widely anticipated that all new tenancies for private rented properties will require an Energy Performance Certificate (EPC) rating of C or above from April 2025, although this is yet to be confirmed and still in discussion. Currently, properties can be available to let if they have an EPC rating of E or above.
We know that from 2028 this increase will apply to all tenancies. This new legislation would also increase the capped amount that landlords would be required to invest to achieve higher ratings, from £3,500 to £10,000.