The situation is evolving as we move towards 2022, with an expanding market, shifting legislation, and the ongoing Covid-19 pandemic — so what’s next for landlords in 2022? To stay ahead of the competition, landlords must keep up with all of the current advancements in the rental industry.
In addition, in today’s ever-changing property market, having a property valuation to determine the value of your home in the neighbourhood is critical.
New Anti-Covid rules
The government has issued new recommendations to help prevent Covid-19 from spreading in rental homes. If you, your leasing agent, or contractors need to visit a tenant’s home, make sure it’s adequately ventilated. During visits, the renter should leave windows or doors on opposing sides of a room open, according to the guidelines.
Check that little vents or grilles at the top of windows are open and unlocked as well. If someone in the household exhibits Covid-19 symptoms, you won’t be able to access the property for repairs or safety checks. The sole exception is if the repairs are necessary to address a direct safety concern for the inhabitants or the general public.
Six-month eviction notice rule extended in Wales
During the epidemic, landlords were instructed to give tenants six months’ notice before evicting them. In Wales, those rules have now been expanded. The rule went into effect in July 2020 and was set to end on December 31, 2021.
However, the Welsh government has decided to extend it until March 24, 2022. All sorts of evictions are covered by this provision. Only cases involving domestic violence or anti-social behaviour are accepted.
Get ready for new energy efficiency regulations.
New energy efficiency regulations for rental homes in England and Wales are anticipated to be implemented by the government. According to the new regulations, all rental units must have an energy efficiency grade of C or higher. Your properties must have at least an E rating under current guidelines.
The government is anticipated to allow landlords until 2026 to comply with the new rental agreement regulations. Any existing tenancy agreements will have to be met until 2028.
The price ceiling on how much you must spend to make each property energy efficient has also been raised from £3,500 to £10,000. Landlords are expected to spend an average of £4,700 per home, according to the government.
New regulations make it more difficult to ban pets
New regulations have been enacted to make it more difficult for landlords to impose a blanket ban on dogs on their premises. The government has changed its sample tenancy agreement to indicate that you can only refuse well-behaved pets if you have a good reason, such as a shortage of room.
While the government encourages landlords to utilise the standard tenancy agreement, it is not mandatory. As a result, your tenants will still require your written consent to keep a pet.
Carbon monoxide safety regulations have been strengthened
Landlords are required to install carbon monoxide monitors under new legislation that went into effect last year. Where new or existing appliances, such as gas boilers or gas fireplaces, are installed, the detectors must be installed.
Carbon monoxide detectors must also be repaired or replaced if they are defective. The goal is to better protect renters against carbon monoxide poisoning by accident.
Mortgage interest tax relief
From April 6, 2020, mortgage interest tax assistance will be phased down. It was replaced with a 20 percent mortgage interest tax credit. However, you won’t see the change until you file your 2020/2021 tax return.
Self-assessment returns for 2020/2021 are due on January 31. So, if you haven’t filed your tax return yet, you have until then to figure out what the changes mean for you.
Extra time for capital gains tax filing
On the tax front, there is some good news. When you sell a rental property, you will have extra time to pay capital gains tax. When selling a buy-to-let property, landlords now have 60 days to notify and pay capital gains tax.
The time is double what they had to accomplish it in previously, which was 30 days. In October of last year, the Chancellor announced the modification in the Budget.
Increasing the number of local licencing programmes
In 2022, landlords may be required to comply with new local licensing schemes. If you rent out Houses in Multiple Occupation, you already require a licence (HMO). In some places, some municipalities may require landlords with other types of property to obtain a licence.
Despite the fact that a government evaluation of selective licensing discovered several flaws in the system, it recommended that it be used. Since the study, many local governments have implemented new licensing schemes. In 2022, this tendency is projected to continue.
What’s going on in the rental market these days?
The rental market had a strong year in 2021. Rent hikes were at a 13-year high, according to our most recent Rental Market Report. The increase was fueled by a surge in renter demand as residents returned to major cities’ central districts.
In addition, there were insufficient properties to match the increased demand. This upward trend is likely to continue in 2022, with significant demand expected. In 2022, rents in the United Kingdom, excluding London, are expected to climb by 4.5 percent. Rents in London are expected to increase by 3.5 percent, surpassing pre-pandemic levels.
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