Read what lies ahead for landlords in 2020.
If you had to sum up 2020 in one word (without using
“unprecedented” because it has been overused) what would it be?
Weird? Abnormal? Or what about unheard-of? Okay,
maybe that is two words, but you catch our drift.
Whatever adjective you choose, it is a safe bet that
you will not forget the first six months of 2020 in a hurry.
But as things slowly edge towards getting back to
normal, it is wort
h taking a moment to look beyond the pandemic.
As we gear up for the second half of the year, there
are other issues specific to landlords that are also important to
consider.
Legislative changes
It is vital you stay on top of any new rules or
regulations that might have come into place over the past few months – or
indeed may be on the horizon.
The situation with Covid-19 understandably absorbed
most of our attention, but in the background, lots of other things have been going
on.
Make sure any important legal changes do not slip
under your radar.
Breach the law and the excuse “I was busy watching
the daily press briefing” will not cut it.
In England and Wales, for example, check up on the
changes to Minimum Energy Efficiency Standard (MEES) that were introduced in
April. The MEES now applies to all private lets meaning that if your property
has an energy rating of F or G you cannot rent it out (the fine for doing so
could reach £4,000).
If you want to feel reassured that you have got a
handle on all your legal requirements, get in touch with us. It is our job to
know when new guidance is published and when laws are introduced.
Tax changes
A change which came into effect in April while we
were all adjusting to life in lockdown relates to changes to tax relief.
These changes have been phased in over several
years, but the final stage kicked in on April 6. Landlords will now receive a
tax credit based on 20% of mortgage interest payments.
This is different to a few years ago when they could
deduct their mortgage interest from rental income before calculating tax.
Changing tenant
priorities
If you are looking to let a property in the next few
months, take time to reassess its major selling points. Do you need to change
your marketing strategy?
Whereas, once proximity to public transport may have
been the top drawcard, now the sunny courtyard or the large living Tunbridge
wells could be the real winner.
Even though many people will be returning to offices
soon, flexible working is here to stay.
Expect more people to work from home at least some
of the time – hence where they live will be more important to them than ever.
So, consider how you can make your property more
appealing to someone who works from home.
Are there small changes you could make inside or out
that would make it more marketable?
Ask us for advice about trends in TUNBRIDGE WELLS.
A quick note
Last week the government finally released guidance
on the
finer details of the Electrical Inspection Condition Reports (EICR) system, which
is due to start in England and Wales next month.
This was then promptly withdrawn due to “inconsistencies”. We’re
keeping our eyes peeled for a revised version of the guidance any time soon.
Here at Martin & Co , we want to help landlords
get through the rest of 2020 and thrive in 2021 and beyond.
If you have any questions about the rental property
market in TUNBRIDGE WELLS, get in touch.
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