The Tory victory in Election 2019 has seen the Pound and share prices surge, but what does a win for Boris Johnson mean to landlords?
Taking recent policy measures, the likelihood is new laws are on the way to strengthen tenant rights, improve the standard of private rented homes and to confirm tax changes for landlords.
Landlords can expect two policies that went to consultation earlier in 2019 to quickly come into force.
Section 21 no-fault evictions face a ban to be replaced by revamped Section 8 notices.
So-called Section 21 evictions allow landlords to take back homes without offering an explanation to tenants. Many fear rogue landlords issue the eviction notices to get rid of perceived problem tenants.
Section 8 evictions generally follow a breach of contract by a tenant, like not paying the rent or badly treating a property.
The new process is expected to follow the model already in use in Scotland, where landlords can only evict a tenant for a specific reason listed in the legislation. The list includes taking a home back to sell or to move into.
Consultation has also ended on tenant passporting or lifetime deposits.
The idea is to make moving home cheaper for tenants by removing the need to raise hundreds of pounds for a deposit on a new home when money is already locked into a deposit on the home they are leaving.
In the pipeline
Other reforms in the pipeline are:
- A law that bans the letting of homes with an Energy Performance Certificate rating of F or G from April
- The final phase of limiting tax relief on mortgage interest payments for higher rate taxpayers. Instead of claiming relief at 40% or 45%, landlords will receive a 20% tax credit on loan interest payments regardless of their marginal rate of income tax
- Private Residence Relief changes are likely to increase capital gains tax bills. An 18 month CGT exempt period when selling a property a landlord has lived in as a home shrinks to nine months from April
- Lettings relief is scrapped that offers a tax break of up to £40,000 on the sale of a former home rented out to tenants from April unless the landlord shares the property with a renter.