It’s happened again

It’s hard to identify the positives for Landlords, as they’re hit again in the Budget, and elsewhere. But, as before, they have proved to be an extremely resilient group of individuals.

In recent years, this sector has faced tax rises, increased regulations, and higher mortgage rates. And now we’ve had the Autumn Budget, along with other recent initiatives.

Renters’ Rights Bill

This is currently going through parliament, with representation from those concerned about the implications of the Bill.

It encompasses elements such as ending Section 21 ‘no fault’ evictions, and allowing tenants to keep pets, provided they have insurance to cover potential damages.

Elsewhere, there’s Awaab’s Law to, understandably, tackle damp and mould in rental properties.

EPC targets by 2030

The government also expects landlords to improve the Energy Performance Certificate (EPC) ratings of their rental properties to a C rating, or above, by 2030.

Whilst Portfolio landlords are more likely to have made the improvements, there are still about 2.9m properties that would need to be upgraded, at an average cost of £8,074 each.
(Source: Rightmove October 2024)

The Budget

Yet again, Landlords are viewed as a relatively easy target, and one where little allowance is made.

Not only was no extension put in place for the existing set of Stamp Duty rates (they end on 31 March 2025), but the 3% surcharge faced by those purchasing an additional home (that isn’t their primary residence), was replaced by a 5% one.

On average, this may add in the realms of £4-8,000 to the purchase cost. And this measure has been implemented immediately, and not from April next year.

So, aside from the extra costs applicable to an ongoing property purchase, it may also have implications for the property-buying chain.

On the upside, the feared increase in Capital Gains Tax for the sale of an additional home didn’t materialise, and the rate remains at 18% for normal rate taxpayers, and 24% for higher rate.
(Source: HM Treasury, October 2024)

Rental take is still rising

That said, across the UK the average monthly rent was a healthy £1,327 (up 3.4% annually). The highest return was Greater London at £2,211, with the rest of the UK averaging out at £1,119.
(Source: Homelet Rental Index report, October 2024)

We’re here to help…

So, if you’re coming off a fixed rate deal, or simply want to have
a chat about future financing options, then please do get in touch.

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your property may be repossessed if you do not keep up repayments on your mortgage.