The Covid-19 pandemic has brought unprecedented stress for people across the globe. Regardless of your industry, personal or financial situation, the pandemic has caused chaos and stress for people everywhere- and the property industry is no exception. Landlords have faced a series of challenging time when it comes to their properties and tenants, regarding changing rules and regulations. As we enter 2022, We Buy Any House have listed a few changes for 2022 for landlords in the UK.
A Change in Eviction Reforms and Deposits:
In 2019, there was a lot of government discussion surrounding the abolition of Section 21- which is essentially a cause that enabled landlord to cease ‘rolling’ tenancies with only two months’ notice. What made this clause somewhat worse, is that landlords were not legally required to give their tenants any notice. The proposal to abolish Section 21 became part of the Renter’s Reform Bill, however its progress became delayed repeatedly by the ongoing Covid-19 pandemic. When the bill is eventually passed, it will encourage the notion of security deposits on rental properties, which will act as a ‘lifetime deposit’ that essentially moves in with the tenant.
Tax Relief Changes and Tax Return Deadlines:
As of the 31st of January 2022, you will no longer be able to apply for the online assessment for the 2020-2021 tax return. If you miss the deadline, then you may have to pay a fine. The reform essentially means that landlords can only offset up to 20% mortgage interest payments.
Energy Efficient Rules:
Climate change has become an increasing concern in the UK (and rightly so), and government officials are now spending extra time to ensure that all sectors are doing their part in order to ensure we work towards a cleaner and more energy efficient climate. Due to this, in the rented sector of the economy, landlords will have to make sure that all newly rented properties achieve a minimum of band C on their energy performance certificates (EPC), up until 2026. The rules suggest that landlords should spend maximum £10,000 on upgrades.
Inflation and Buy-to- Let Mortgages:
Already this year, buy-to-let mortgages have fallen ever so slightly, but the pending increase in interest rates and rising inflation set by The Bank of England could bring about lots of change throughout 2022. The looming rise in increase rates will affect how much it costs lenders to borrow money, and higher mortgage prices may be a turn off for potential borrowers. However, lenders may choose to use alternative measures in order to attract investors- perhaps by offering them deals that are fee free or cashback incentives.
Bear in Mind the Rental Market is Recovering:
Over the past two years, the property market has faced unprecedented uncertainty. The naturally quick turnover in the renting sector has meant that landlords are caught between decisions. Some predict that landlords will either stick to the properties they have or sell and move on. However, if there is no further investment, this could drastically affect the rental market, and prices could rise by 4.5% by the end of 2022. This is due to the fact that after the pandemic, there has been a rush of people who are keen to move back to cities after spending time working from home remotely.
This article was written by a quick house sale company We Buy Any House. If you’re wondering “how can I sell my house fast?”, head to the We Buy Any House website for more information relating to all property related enquiries.