Buy-to-let landlords need to be ‘fully up-to-speed with legislation’

Buy-to-let landlords need to be ‘fully up-to-speed with legislation’

Todays other news
The Government has been criticised for ignoring warnings about the...
There is less than a year to go until sole...
There are no rental obligations for landlords linked to Government...
Landlords have been given a new borrowing option after Coventry...
The Mortgage Works (TMW) has altered its limited company lending...


With a high number of laws affecting buy-to-let landlords and changing frequently, it is now more important than ever to keep up to date with the rules and regulations governing the private rented sector, according to Direct Line for Business.

A raft of new laws have been introduced in recent years affecting those who have invested in the buy-to-let market, including the introduction of the 3% stamp duty surcharge, the phasing out mortgage tax relief, scrapping of the ‘wear and tear’ allowance, tenants’ right to request energy efficiency improvements, the Houses in Multiple Occupation and Residential Property Licensing Reforms, Right to Rent laws, and then there is the proposed letting agent fee ban.

All these measures affect those who own rental properties, which is why Direct Line for Business is now urging private landlords to brush up on their knowledge of the new legislation to avoid potentially being hit by fines.

Additionally, the Energy Efficiency (Private Rented Property) Regulations for England and Wales, set to come into effect from April 2018, also mean that landlords must ensure that properties they rent in England and Wales reach at least an Energy Performance Certificate (EPC) rating of E before granting a tenancy to new or existing tenants.

Any failure to adhere to this new law could result in a fine of up to £5,000 or 10% of the rateable value of the property. However, analysis by Direct Line for Business reveals that updating the energy efficiency of a property can result in cost-savings of up to £1,000 per year.

On a more positive note for landlords, recent research conducted by Direct Line for Business found that landlords across the UK expect to see a hike in rents of 4% in 2017. 

On the average annual rental income of £10,740 this represents an increase of £386.64 throughout the year.

Christina Dimitrov, business manager at Direct Line for Business, commented: “Being a landlord in the current climate can be a profitable business, especially if there is a demand for rental properties as we’ve seen in recent years.  However, with so many changes taking place, and with more on the horizon it’s essential for any landlord to be fully up-to-speed with legislation, as the penalties for breaking the law can erode any potential profits.

“We understand that one of the challenges for landlords is having the correct legal documents in place. To make it easier for landlords, Direct Line for Business offers a legal documents service to all policyholders, which can help with the creation of vital legal documentation needed when renting a property. ”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Landlord Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
The Mortgage Works (TMW) has altered its limited company lending...
Sanctions include Fixed Penalty Notices of up to £400 or...
He allowed an organised crime gang to set up a...
The forum is organised with the National Residents and Landlords...
The most vulnerable tenants may pay the highest price...
The service has expanded across the UK...
A tax rise coming in just five weeks’ time will...
Recommended for you
Latest Features
landlord numbers have fallen almost 1,000 between August 2024 and...
The fallout from the tariff drama could come together in...
Here’s how to reduce heating costs without compromising on comfort...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here