Navigating the Rental Landscape: Key Changes for Landlords in 2024
In the dynamic world of UK property investment, 2024 brings a host of significant changes and developments, presenting landlords with a shifting landscape to navigate and legislation to prepare for.
1. The Final Year of Lower Stamp Duty
Following Chancellor Kwasi Kwarteng's announcements in September 2022, including an increase in the residential nil-rate tax threshold, a significant development regarding stamp duty has emerged. Initially perceived as a permanent adjustment, the raised threshold is now subject to a sunset clause, quietly introduced by Jeremy Hunt in his Autumn Statement later that year. This clause stipulates that the increased threshold will revert to its original amount of £125,000 by March 2025. Consequently, landlords may anticipate a surge in property transactions towards the end of 2024 and the beginning of 2025, as buyers seek to benefit from the lower stamp duty rates before they expire.
2. The Renters Reform Bill: Details Awaited
Expected to become law in 2024, the Renters Reform Bill promises significant changes to landlord-tenant relationships. Despite its lengthy 164-page draft, crucial details remain pending confirmation. Key points awaiting clarification include the operation and cost of the proposed PRS Ombudsman, specifics of the Decent Homes Standard for private landlords, functionality of the Rented Property Portal, and the timetable for abolishing Section 21. As the Bill progresses through Parliament, further amendments and clarifications are anticipated.
3. The Leasehold and Freehold Reform Bill
New legislation entails ground rent not exceeding one peppercorn per year, essentially setting it as nil. Additionally, the extension of lease terms to 990 years simplifies the process of lease extension or freehold purchase, removing the previous requirement of owning the property for more than 2 years to benefit from these changes.
4. Energy Efficiency Upgrades Remain Important
While the proposed energy efficiency change of Minimum Energy Efficiency Standards (MEES) was quietly scrapped by Rishi Sunak in September 2023, energy consumption remains a critical consideration in 2024. Although changes like MEES may be deferred, it's advisable for landlords to continue making positive changes to improve the energy rating of their investments.
5. Short-Term Lets Regulations Expected
Anticipated legislation for short-term lets may include higher taxes, limits on the number of short-term lets in a specific area, and licensing schemes. Though details are yet to be confirmed, landlords should prepare for potential restrictions in this area.
In conclusion, landlords face a landscape of evolving regulations in 2024. With proper guidance and proactive measures, they can navigate these changes effectively. For further discussion, feel free to contact Jack Naylor at 01273 326614 or via email: Jack@ethoslettings.com.