At Belvoir, we like to collate the latest in laws, regulations and updates that are relevant to our landlords and tenants. Find out what’s happening in the world of property and the housing market below.
The Introduction of a “Fairer Rented Private Sector”
In June 2022 the Department for Levelling Up published its white paper: “A fairer private rented sector“. The aim is to halve the number of non-decent rented homes by 2030 by implementing a government backed 12-point plan of action.
This includes things such as; giving tenants the right to request a pet in their property, which the landlord must consider and cannot unreasonably refuse, introducing a new Property Portal to make sure that tenants, landlords and local councils have the information they need and speeding up a landlords’ ability to evict those who disrupt neighbourhoods through antisocial behaviour and introduce new grounds for persistent arrears and sale of the property.
You can read the full whitepaper here.
Statistics Show Rents Are Rising At The Fastest Rate Recorded
Since the pandemic started, rent outside of London has increased by 19 percent (£177), reaching a new high of £1,126 per month. According to data from Rightmove, average monthly rent is up 3.5 percent from the previous quarter and 11.8 percent from the previous year.
Therefore, they are currently increasing at the quickest yearly rate since statistics have been kept, which was 16 years ago.
Because rents are rising at the quickest rate ever seen, this can present a hurdle for prospective first-time buyers wanting to save while renting. Nationally, average monthly rent payments have increased by 17% since two years ago.
In Great Britain, the price of homes for first-time buyers has surpassed a previous high of £224,943. Therefore, the average 10% deposit required now is £22,493.
This is £2,560 more than the required deposit of £19,934 from two years ago. The average first-time buyer’s deposit only increased by £807 between July 2018 and July 2020.
For prospective first-time buyers looking to save while renting, they face the challenge of record rents that are rising at the fastest rate ever recorded. Average monthly rental payments are 17 per cent higher nationally than they were two years ago.
HMRC changes tax deadlines for first-time landlords
HM Revenue & Customs has decided against altering the date by which first-time landlords must notify the IRS of their ITSA or income tax self-assessment due.
Currently, a self-employed person or a first-time landlord must notify HMRC of their income tax self-assessment liability no later than six months following the end of the tax year in which they become liable for tax.
It also provides the person time to fill it out and submit it by the statutory deadline, which is the following January 31. This gives HMRC time to issue a Unique Taxpayer Reference if the person does not already have one.
Recently, HMRC had suggested substitutes including shortening the existing six-month deadline to two, three, or four months or utilising the commencement date of the firm to establish a notification responsibility.
HMRC has already backed off any changes and reaffirmed the six-month timetable will remain.
Launch of the first rent-to-own programme in the UK, supported by Nationwide
The first open market rent-to-own programme in the UK has been introduced for first-time purchasers who are unable to obtain conventional mortgage financing.
In accordance with the plan, Kettel purchases freehold single-family homes outside of London for between £125,000 and £400,000 and charges first-time purchasers 2% of the purchase price, which will go toward their eventual down payment. In order to fix their rent, savings, and eventual purchase price, the company then rents the house back to them for an initial three-year renting period while they save for a deposit.
If the renter decides against buying, they keep their savings, less a relisting charge, and the unsold properties are used by investors to construct a long-term PRS portfolio.
How Belvoir Can Help
Unsure about any of the latest updates to concern landlords and what they mean? Get in touch
with us – our experts can help give you peace of mind and smooth over anything you are unsure about.
