May has barely started and there have already been announcements that could affect both landlords and letting agents. With mortgage companies announcing a rise in their rates and Companies House changing their pricing, it is important for letting agents and landlords to be aware of all the updates coming up this month.
And don't forget, you can download newsletter templates for your landlords to inform them of big changes ahead.
Following the closure of Scotland’s rent caps at the end of March 2024, the Government has introduced new proposals and regulations for the private rental sector, with the Housing (Scotland) Bill.
Originally introduced in April, the Bill is divided into six parts focusing on elements such as rent control, eviction procedures, tenant rights, and homelessness prevention.
The Scottish Goverment has launched a public consultation on the Bill and some key areas of focus, which will close on 17 May. These key areas are:
You can submit your views on the Bill before 17 May here
Two integral bills for the private housing sector have entered the House of Lords in April and will be debated this month.
The Leasehold and Freehold Bill is currently in the Report stage of the House of Lords process, with only one more reading to go before it enters the final two stages.
This bill will help landlords and tenants and aims to improve and promote fairness for the growing number of leaseholders in England and Wales.
The Renters (Reform) Bill entered its second reading on 1 May, with three more stages left to go in the House of Lords.
First introduced in May 2023, this bill will affect letting agents, landlords and tenants strengthen and reform the private rental sector.
Once both Bills have passed in the House of Lords, there will need to be a consideration of any amendments made to the Bill, before it can achieve Royal Assent and become law.
While it is not clear how long it will take for both Bills to be passed through the House of Lords, it is going significantly quicker than its time in the House of Commons. Letting agents should be aware of both bills and when they will become law, as it’ll cause major ripples in the private rental sector.
On 2 May, local authorities around the United Kingdom will be holding elections for their Government. This will be the most accurate snapshot of what the UK population thinks of their local and general government before a possible General Election in 2024.
Some of the elections include:
With 388 local councils in England and about 20,000 councillors, the local government has control over housing, council tax and transport in their local community.
Find out more on Conservatives and Labour’s housing proposals and plans
Local Housing Allowance (LHA) is used to calculate housing benefits for tenants from private landlords.
This is dictated by the Department for Work and Pensions and is based on the private market rents being paid by tenants in a Broad Rental Market Area (BRMA).
From the start of April 2024, the government plans to raise LHA which will benefit some of the poorest families on universal credit or housing benefit and will gain around £800 a year.
The amount of local housing allowance is dependent on the area where the property is based. You can find out the rates by postcode or local authority here.
From 6 April 2024, landlords who own properties in their name will have a smaller Capital Gains Tax.
Capital Gains Tax applies when someone makes a profit from selling a property that isn’t their main home. This includes selling buy-to-let properties, business premises, land, and inherited properties.
As mentioned in the Spring Budget, the tax will be reduced from 28% to 24%. This means that if landlords are really selling up, they will be charged less by this tax.
Find out the five key letting agents should know from the Spring Budget
Residential properties are exempt from VAT. However, an increase in the VAT registration threshold may soon affect landlords with holiday accommodation and short-term lets.
As announced in the Spring Budget this year, the VAT threshold will increase from £85,000 a year to £90,000, starting on 1 April 2024.
This means that any landlords earning under the £90,000 threshold will not have to register for VAT, and can earn more without being taxed.
The Leasehold and Freehold Bill will enter the committee stage in April. Since being unveiled in November 2023, this bill has caused a lot of controversy within the private rental sector.
In March 2024, it was reported, following a consultation, it was reported that Michael Gove, Secretary of State for Levelling Up, Housing and Communities, may abolish the introduction of "peppercorn" rates, a key element of the Leasehold and Freehold Bill.
The Committee stage of the Bill should iron out the current issue on ground rents and how transparent service charges will be in the future.
Find out more about the Leasehold and Freehold Reform Bill
On 6 September 2022, a rent freeze and moratorium on evictions was introduced to all private rental properties in Scotland as a way to stabilise the housing market following the pandemic. At the end of March, this rent cap and moratorium will be changing.
As part of the Cost of Living (Tenant Protection) (Scotland) Bill 2022, the Scottish Government capped rent increases at 3%, or 6% if the landlord has requested a higher increase for additional costs.
From 1st April 2024, private landlords can start to propose a rent increase between 6% to 12%, only in cases where the current rent is below the open market rent. If the tenants believe the increase is too high, they can apply to Rent Service Scotland (RSS) for them to decide what the rent should be.
Download our poster of key upcoming dates in Scotland for 2024
In the lead-up to what will be a big year for UK politics, the Chancellor of the Exchequer will be presenting his spring budget to parliament on 6 March.
Jeremy Hunt, Chancellor of the Exchequer, will present the Conservative’s key policy announcements, as well as the Office for Budget Responsibility (OBR) forecasts.
As part of the background research for the budget, the House of Commons Library has reported that fixed-rate mortgages started to increase in February 2024, meaning “that financial markets are not expecting as many rate reductions from the Bank of England in 2024 as previously thought”, affecting rental increases.
Find out the key takeaways from the Autumn Budget 2023
The House of Lords Industry and Regulations Committee began its inquiry to determine whether there should be a new industry regulator in February of this year.
A further session will resume on 5 March and will include evidence from The Property Institute, Propertymark, The Property Ombudsman and National Trading Standards.
In February’s session, the Industry and Regulators Committee discussed conflicts between tenants and agents, and the current issues for leasehold and freehold within England.
As part of the Immigration Act 2014, landlords and letting agents have a legal responsibility not to home tenants who don’t have the right to live in England. Those who knowingly rent their properties to lawful immigration status holders can face a civil penalty.
On February 13, these fines will be increasing significantly. For first-time breaches, fines will increase from £80 per lodger and £1,000 per occupier, to now a maximum of £5,000 per lodger and £10,000 per occupier. Repeat breaches can now face a maximum fine of £10,000 per lodger and £20,000 per occupier.
To check a tenant's immigration status correctly, landlords must view original immigration documents, make copies and keep them for 12 months after the tenancy expires. Letting agents must check that all tenants who occupy their properties have a legal status to live in the UK.
This Right to Rent scheme fines can be served to landlords or letting agents and is only currently mandatory in England and for properties within that country.
Communities who experienced ‘exceptional localised flooding’ by Storm Henk (2 to 12 January) will be able to apply for funding through the Flood Recovery Framework.
Over 30 flood warnings were given from Storm Henk which damaged around 2,000 properties and caused over 150 million of insured losses.
The government is providing available help for:
The government plans to deliver a £5.3 billion investment to protect properties to prevent future flooding damages. Support and further details on eligibility are available through your councils.
Find out how to prepare your rental property for storms and flooding.
With the news that Mark Drakeford stepped down as the Welsh Labour leader in December 2023, an election will start in February to determine the new leader of the Labour Party.
In December, two candidates received enough nominations to get on the membership ballot, Vaughan Gething MS and Jeremy Miles MS, and are now in the running to be the new leader of the Welsh Labour Party.
Jeremy Miles is currently serving as Minister for Education and Welsh Language, and Vaughan Gething is acting as Minister for the Economy of Wales.
Ballots will open on February 16, and close on March 14, with the new Labour Leader to be announced on March 16.
Greater Manchester Mayor, Andy Burnham launched the Good Landlord Charter on January 8 to bring together landlords and renters to improve the standards of homes in the the private rental sector, as well as social housing.
As part of this Charter, landlords with properties in Greater Manchester are invited to take part in a focus group to discuss how to make homes more affordable, safe, inclusive and well-managed.
The consultation period will close on February 26, and the focus group will be on Tuesday 20 February. If you are a landlord who owns a property in Greater Manchester, you can register to attend here.
Originally introduced in November 2023, the Leasehold and Freehold Reform Bill will apply to England and Wales to “improve consumer choice and fairness in leasehold to crack down on unfair practices in leasehold’.
The government will also look to introduce a ground rent cap through this bill.
The Labour Party has put forward amendments to the Leasehold and Freehold Reform Bill during the committee stage in January. The amendments include a Leasehold Reform Bill within Labour’s first King’s Speech if the bill doesn’t go ahead in the Conservative government. They have also pledged to adopt proposals from the Law Commission to make it easier for leaseholders to buy or extend their lease.
The Bill will continue to develop over the next few months.