UK landlords urged to keep up with policy changes or risk fines
Landlords in the UK private rented sector are being urged to make sure they are keeping up with changes to the law and policy in the market, to make sure they are not putting themselves at risk of incurring a fine.
Direct Line for Business looked at the changes that owners of buy-to-let properties have had to deal with over the last few years, and found that as many as 1.75 million landlords are seeing an impact on their operations.
The biggest change, it said, has been the Stamp Duty levy, which added three per cent on top of the typical property tax for anyone who is buying a home to let. The research found that anyone who is now buying a home at the average property price in the UK will be spending £8,000 on Stamp Duty, which is more than three and a half times what it would have cost them previously.
However, while this has been a rather well documented change, there have also been others that landlords operating in the private rented sector may not be as aware of. These include the alterations in mortgage tax relief, which can see landlords spend more on income tax, the fact that tenants are able to request improvements to their properties for energy efficiency reasons, and the abolition of wear and tear allowance for landlords.
Direct Line for Business said landlords need to make sure they aware of all of these changes, as well as the implications it will have on their own operations, so that they don't face a fine for failing to adhere.
"Being a landlord in the current climate can be a profitable business, especially if there is a demand for rental properties as we’ve seen in recent years. However, with so many changes taking place, and with more on the horizon it’s essential for any landlord to be fully up to speed with legislation, as the penalties for breaking the law can erode any potential profits," said Christina Dimitrov, business manager at Direct Line for Business.
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14-September-17General Lettings News