Autumn statement wish list for change in the lettings sector
Over the past few years, new legislation has come in at pace for landlords. This, combined with rumours of potential Capital Gains Tax (CGT) increases set to be announced in the Autumn Budget and new rules laid out in the proposed Renters Rights Bill, is causing uncertainty across the sector.
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Hide AdHowever, despite the doom and gloom that surrounds these things, there are actually plenty of reasons to be positive and I think the rental market can adapt to the new changes and come out stronger.
To help this happen and to provide a boost for the sector, I’d like to see the Government announce the following measures in the Autumn Budget:
A review of the Renters Rights bill. The new Renters Rights Bill is unclear in its current form and is making landlords nervous about how easily they will be able to gain possession of their properties in the future.
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Hide AdAs such, I’d like to see a review of the Bill being announced to make the rules both clearer and fairer.
If this is done correctly, it will mean that landlords are held to higher standards, forcing bad landlords out of the market and improving the quality of rental housing available.
One of the biggest concerns has been around the scrapping of no-fault evictions, but a landlord still has grounds to remove a problematic tenant. I’d like to see this part focused on in the Budget, with a fair solution being provided that works for both tenants and landlords.
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Hide AdHigh property standards and security for tenants are a must, but landlords also have to be certain about how they can gain possession of their properties if they need to.
A hold on CGT: Holding CGT at its current level will ensure landlords don’t leave the sector and it will entice others to enter. It will also motivate them to invest in their properties to ensure they meet new, higher standards steadily being brought in.
Several new rules due to come into force over the next few years will result in expenses for many landlords, so a hold on Capital Gains Tax could help balance this out and ensure the sector remains an attractive one to be in or enter.
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Hide AdTax relief on energy efficiency measures: New eco rules are due to come into effect by 2030, and all rental properties will be required to have an EPC rating of C or above.
Achieving this level will mean upfront costs for landlords, particularly those who own older or listed properties. The proposed rules will result in higher quality homes, which is brilliant, but I think the Government should provide an incentive to help landlords meet these targets. Tax relief on energy efficiency-related improvements would be a fair, effective way to do this.
Landlords provide a huge number of much-needed rental homes for people, and the Government needs to ensure that the rental sector works for everyone.
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Hide AdIf it can take an holistic view of the market and consider the needs of landlords and tenants in the Autumn Budget, it has the potential to transform the lettings sector and ensure there are high-quality properties available to rent at a fair price.
People will always need homes to rent and landlords need to be motivated to provide them.