Landlords constantly face changing laws and legislation.
What could change this year, and what to keep an eye on?
Landlords have been facing an increasing amount of laws and regulations over the past few years, including the 3% stamp duty surcharge, changes to mortgage interest tax relief, tenant fees, and energy efficiency requirements. However, at the moment, there are not many confirmed lettings laws set to come into play in 2023, though there is a possibility that rental reforms will be introduced. Here are the top three changes that landlords should keep an eye out for in 2023:
Changes to Fire Safety
Landlords with homes in a high-rise or multi-occupied buildings need to be aware of upcoming changes to fire safety legislation, which will be implemented on January 23, 2023. The Fire Safety (England) Regulations 2022 will enshrine most of the recommendations made by the Grenfell Tower Inquiry in its Phase 1 report, aiming to improve the fire safety of blocks of flats in a practical, cost-effective, and proportionate manner. Responsible persons must share information about the building's external wall system with their local fire and rescue service (FRS), provide the FRS with electronic copies of floor and building plans, and keep hard copies of the building's floor plans.
They must also install wayfinding signage in all high-rise buildings, establish a minimum of monthly checks on lifts, and inform the FRS if a lift or firefighting equipment is out of order for longer than 24 hours. Responsible persons must also carry out quarterly checks on all communal fire doors in multi-occupied residential buildings over 11 metres in height and annual inspections on flat entrance doors. Lastly, they must provide residents with relevant fire safety instructions and information about the importance of fire doors.
Renters' Reform Bill
The government has been planning widespread rental reform for some time, and 2023 could be the year when it finally comes into play. The Renters' Reform Bill will need to pass various parliamentary hurdles before it can become law, and some parts of it are likely to face opposition, which could slow down progress. However, Housing Secretary Michael Gove has said that reforms will be introduced next year, and the Bill should at least make its way to the first stage of parliamentary scrutiny.
Changes to Capital Gains
Tax-Free Allowance Chancellor Jeremy Hunt recently announced plans to more than halve the Capital Gains Tax tax-free allowance from April 2023, down from £12,300 to £6,000. From April 2024, it will halve again to £3,000. This will impact the profits landlords can make when they sell a home, which could encourage them to sell before the changes come in or hold off selling for the time being. In conclusion, landlords should be aware of the upcoming changes to fire safety legislation and keep an eye out for the Renters' Reform Bill and changes to the Capital Gains Tax-Free Allowance in 2023.
Landlords must stay informed and comply with all relevant laws and regulations to avoid any legal issues and ensure the safety and satisfaction of their tenants.
If you have any questions about changing legislation, call us at 0208 741-8495 or email Office@londonestates.net; we would love to help.
Written by John Rigg
