Are tenants just paying for their landlord’s mortgage or are there other costs involved in running a lettings business?
This is one of the most common narratives in the debate between tenants and landlords.
The long-awaited consultation into the banning of letting fees, as announced by the Chancellor in the Autumn Statement 2016, has now been opened.
The consultation can be downloaded below, or click here to view it.
Proposals for a ban
Cutting Red Tape
The Government has announced a review of ‘unnecessary regulatory barriers placed on businesses by local authorities.
George Osborne’s revelation, in the Summer Budget (2015) that landlords would no-longer be able to claim tax relief against their finance costs at their marginal rate of Income Tax took the market by surprise.
The NLA has estimated that in excess of 341,000 landlords will be directly impacted by the change. With many more unaware of the effect that the Chancellor’s policy will have on their future business opportunities.
The Home Office has today (20th October 2015) announced the roll-out of the Right-to-Rent Scheme across all of England.
From 1 February 2016 all private-landlords letting property in England will be required to check the immigration status (or right-to-rent) of prospective tenants before agreeing to establish a new tenancy.
Announcements concerning the implementation in Scotland, Wales and Northern Ireland are expected at a later date.
Secretary of State for Communities and Local Government, Greg Clark, is to introduce a new Housing and Planning Bill to Parliament today (13 October 2015)
According to the Order of Business (the daily agenda for the House of Commons) describes the legislation as a:
“Bill to make provision about housing, estate agents, rent charges, planning and compulsory purchase”
The full Bill can be found here however the following is a quick guide to its contents.
The Scottish Government has published the Private Housing (Tenancies) Bill which sets out the legislation required to introduce their previously announced proposals to increase security of tenure for private tenants.
Publishing the bill, Housing Minister Margaret Burgess said:
With one day to go until a raft of measures introduced by the Deregulation Act come into force landlords will be glad to know that the department responsible is nearly ready to publish guidance informing them how to comply.
That’s right, with less than 24 hours to go the NLA has a draft copy of guidance (which was expected last week) which should be published shortly to coincide with the commencement
Announced as part of the Summer Budget, the Government has published its consultation on proposals to scrap the 10 per cent ‘wear and tear’ allowance and introduce tax relief for the replacement of furnishings in let property.
The consultation, which will run for 12 weeks until the 9th of October 2015, outlines proposals to replace the existing allowance with a relief that enables all landlords of residential dwelling houses to deduct the costs they actually incur on replacing furnishings in the property.
The European Commission is considering whether to relax VAT rules for energy efficiency in buildings, after EU judges ruled a British lower rate for materials such as insulation and solar panels illegal.
According to Energy and Climate Commissioner Miguel Arias Cañete EU Commissioners met recently to discuss plans to remove barriers to investment, one of the three pillars of the executive’s flagship Juncker Investment Plan.