Election Aftermath: Key Property Sector Changes

We have a new Government who have promised an “overhaul” of the Private Rented Sector. What do Landlords and Lettings Agents need to look out for?

The Renters Reform/Renters Rights Bill
This was still in the House of Parliament prior to the snap election. Labour had called for an immediate abolishment of Section 21 evictions as confirmed in the King's Speech.

The Leasehold and Freehold Reform Act 2004
This has now become law; however, the provisions are yet to come into force. It seems that we may have to wait until the end of the year for any changes to come into effect. 

Capital Gains Tax, Stamp Duty Land Tax
It is unclear what changes the Government proposes to the current CGT and SDLT rates and this was not addressed in the King's Speech.

Bidding Wars
The Government has pledged to end bidding wars in the sector, as well as capping upfront payments to secure properties.

Energy Efficiency Targets 
Labour plans to move forward with the tightening of energy efficiency standards requiring landlords to meet a minimum rating of C in their properties by 2030. 

Rental Increases and Rental Caps
A number of landlords may be considering increasing rents within the next year. Landlords should be aware of the Government's proposals to place caps on rental increases and should exercise caution and follow the correct procedure. A range of documents are available in the Property Documents for use when considering a rent increase.

Regulator of Social Housing Standards
A number of social landlords have failed to meet the new consumer standards which came into force earlier this year. The Housing Ombudsman has named almost 30 local authorities and social housing providers of maladministration.

Private Landlords and agents should be aware of their continuing obligations to ensure properties are safe and habitable. A range of documents are available to assist with this. 

Awaab's Law to Extend to Private Rented Sector
The Government plans to extend Awaab's law to the private rented sector. Landlords and agents should be aware of the current position relating to Damp and Mould and associated templates can be found in the Property Documents. 

Changes to second homes and Airbnb in Wales
Under new Welsh Government Legislation, each local planning authority will have the powers to require property owners to obtain planning permission before changing the use of a main home into a second home or short-term holiday let. The proposed changes would come into effect from September this year.