Changes in 2015 and 2016 that will affect your property investment in Clapham, Brixton and surrounds
Well it's certainly been an eventful year. We've seen a lot of regulatory and taxation changes - we're already seen the results of these in the form of panicked twittering and facebookerings.
2016 will be no different I'm sure!
So what is causing such a commotion? Well property investors are up in arms about a few things recently, some good, some bad. Let's have a quick reminder of the changes in the recent past, along with announcements for 2016.
Deregulation Act 2015
This covered a few things, but here are the highlights
- You can't serve S21 if:
- there are outstanding repairs
- you are sooner than 4 months into a tenancy
- the deposit isn't protected
- you haven't served the tenant with a "how to rent" booklet
- you haven't given the tenant a valid gas safety cert or EPC
- You don't need to re-serve the Prescribed information to the tenant(s) upon renewal
- Energy efficiency: Compulsory for landlords to make improvements at tenants' requests in order to make the home more energy efficient; and by 1 April 2018 ALL landlords must upgrade the energy efficiency of the rental properties which are rated F and lower to a minimum of E by April 2018 or they will not be allowed to let until such time improvements are made.
- Tax Changes: Interest relief being reduced to the basic tax rate. Phased in over for tax years starting with year ending March 2017, with the full effect being felt YE 2020.
- Stamp duty surcharge of 3% added to buy-to-let and second homes. Buying as investment? expect to pay more stamp duty. Primary homes exempt.
- Right to Rent: Mandatory ID checks for all tenants. Onus on the landlord to determine immigration status
So, it's been an exciting year, but with recent announcements I'm sure 2016 will be an eventful one. I've spoken to many of my fellow investors and they are of the opinion (as am I) that rents will rise astronomically in order to cover the increased running costs. Having said that, the recent changes to push for repairs to be carried out as well as homes to become more energy efficient will certainly improve the quality of homes to rent in the PRS.
What's your view? Feel free to comment below.
If you are looking for your next investment or advice on property and more, feel free to drop me a line on firstname.lastname@example.org.