Top 9 facts for Landlords in 2021
With the start of 2021 bringing many changes to the property market, the Buy-To-Let market has undoubtedly seen some changes.
Below are our top 9 facts that we feel Landlords should know in 2021!
The government’s new debt respite scheme came into effect on May 4th 2021. The scheme covers a range of debts, including rent arrears and enables people struggling financially to have some breathing space. People who are struggling to repay their debts due to the current situation will be able to benefit, with the government expecting over 700,000 people to apply for this scheme.
The scheme gives breathing space for struggling people and gives them legal protection from creditors taking action. This does mean that Landlords need to stop any enforcement action and not charge any late payment fees, penalties or charges subject to their existing tenancy agreement.
The scheme lasts for up to 60 days and can be started by a debt advice provider or a local authority.
The pandemic has also seen an extension to the Eviction ban until May 31st 2021, with exceptions being made for anti-social behaviour, illegal occupation, fraud or rent arrears of more than six months and cases of domestic abuse in the social sector.
This has come into effect by the government to help tenants in both private and social rental sectors to be able to stay in their homes and have enough time to find alternative accommodation.
As things currently stand, landlords can start eviction proceedings by issuing either a section 21 or section 8 notice once the ban is lifted.
As a landlord, you do not need to give a reason to evict tenants under a section 21 notice, but you must provide a warning period. You can only issue a section 8 notice if there are legal grounds, for example, if tenants are in rent arrears.
A free mediation service has also been set up to help landlords and tenants resolve disputes without having to go to court in a bid to help more people stay in their homes.
In a bid to improve the safety of tenants in rented accommodation, the government has introduced new requirements for landlords in order to demonstrate that a qualified electrician has tested any electrical installations such as wiring and electrical sockets.
Previously, landlords only had to provide an Electrical Installation Condition Report for every property they owned for new tenancies.
This new report has to be carried out every five years, with a copy given to the tenant within 28 days of it being issued.
Stamp Duty Holiday extension has also meant that landlords looking to invest in the property market will benefit from a substantial saving. However, landlords are still liable to pay the 3% surcharge on any additional properties they buy.
The Stamp Duty Holiday means that no standard rates will be paid on properties up to £500,000 if completion is by June 30th or £250,000 if competition is by September 30th. From October 1st, standard Stamp Duty rates will apply in addition to the 3% surcharge for any additional properties purchased.
2020/2021 saw the mortgage interest rate tax relief replaced with a 20% tax credit on mortgage interest. Although this change came into effect on April 6th 2020, the tax impact will have been felt from April 2021.
For landlords registered as a business and have a turnover of more than £85,000, a digital tax account will be required as part of the HM Revenue & Customs (HMRC) Digital Tax initiative.
Landlords can carry out Right to Rent checks by online methods such as video due to the current pandemic. However, the government has suggested that from May 17th, in-person checks would be required. For previous checks, 8 weeks would be given for in-person checks to be carried out.
Under the amended model tenancy agreement unveiled by the government on January 28th, consent for pets will a default. This means that landlords who do not wish to have pets in their properties will have to opt-out.
The government feels that this will be fair on tenants who have well-behaved pets and that for many years it has made it difficult for people to find pet-friendly accommodation.
From April 2021, lettings agents need to protect clients’ money, such as tenants deposits, into a client money protection scheme. Part of this legislation has also meant that lettings agents have to display a valid certificate in their offices and online, confirming they comply with the current legislation to ensure that their client's money is protected at all times.
Whether you have an existing property portfolio and are looking for property experts to manage your portfolio, or are looking to become a landlord and want advice, speak with our dedicated team today by calling them on 0116 266 99 77!
#PropertyNews #PropertyInvestment #Landlords #LeicesterPropertyMarket #Seths