SPRING BUDGET: Summary for Landlords in England

landlord
Mar 08 | 2021

SPRING BUDGET: Summary for Landlords in England

  The hotly anticipated Spring Budget has arrived and Landlords are able to breathe a sigh of relief - at least for the time being. The relevant provisions are summarised as follows: - Stamp Duty Land Tax holiday (for properties in England and Northern Ireland up to £500,000) is extended until 30th June 2021; - Business rates holiday until end of June 2021 (and discounted rates thereafter) - An increase on Corporation Tax on company profits is delayed until April 2023, when it will increase to 25% (relevant to both incorporated Landlords and letting agency businesses) - Capital Gains Tax exemptions are frozen at their 2020-21 levels until 2025-26; - For Landlords of commercial premises, a £5 billion Restart grant for shops and other businesses; - The £20.00 a week uplift in Universal Credit (worth an extra £1,000.00 a year) will be extended for a further six months, and the Furlough Scheme is extended until end of September 2021. Notwithstanding the glimmer of some good news above, industry opinion has criticised the lack of support for Tenants in the Budget - and the inevitable impact this will have on their Landlords. Whist the Universal Credit and Furlough Scheme will enable Tenants to plan ahead, the fact remains that there has been a lack of support for Tenants during the Covid-19 pandemic, many of whom risk losing their homes and / or damage to their credit scores due to rent arrears. This is likely to have a significant effect on the Government's plans to turn Generation Rent into Generation Buy. The extension of the Stamp Duty Land Tax is a real boost for homeowners but Tenants appear to have been forgotten in the process. We cannot foresee what will happen in six months time, particularly when such emergency measures such as the Universal Credit uplift and Furlough Scheme may end, and Tenants are likely to be feeling the effect of the Covid-19 pandemic for months ahead. There are calls for the Universal Credit uplift to become permanent, as well as noises being made regarding more social housing and investment in housing benefit. It is thought these types of measures will provide security and safety for Tenants and confidence to seek work which will help to prop up the economic recovery for the difficult times ahead of us. For more formation on the services we can offer Landlords, please visit our Landlord Services page or call us on 0330 123 1131.  Joanna McBride - Solicitor Further information relating to the Budget 2021 can be found here.

Pets and Renting

housing, tenant
Mar 02 | 2021

Pets and Renting

Just 7% of private landlords advertise their properties as pet-friendly.

If you are renting your property, it is always important to read about changes in legislation, such as the 'Dogs and Domestic Animals (Accommodation and Protection) Bill 'Jasmines law'. The Act states that a Landlord is legally bound to accept pets in a property.  The Act, although not yet in force, will soon make it discriminatory for a Landlord to advertise their properties as not accepting any pets. However, if a Tenant writes to a Landlord asking why they are not permitted to bring their pet into the property, a Landlord has 28 days to provide his/her reasons.   In order for the Landlord not to be found discriminatory, he/she must prove that they have reasonable grounds for not permitting the pet. This obviously is a two edged sword, firstly 40% of the public have a pet (so the Landlord is missing out on a large population of the rental market) and some Pets are not well cared for, and therefore could cause damage. In January 2021, the Ministry of Housing announced changes to the model tenancy agreement, thereby making it easier for tenants to have pets. Our thoughts are: with 40% of the British public owning a pet, if it is well behaved, then we are on board with the changes in legislation.  It is however very important that the Landlord ensures that all relevant checks are made prior to a tenant occupying the property, that if they are using an Agent, it is an Agent they can trust to make regular inspections, and, they consider having a guarantor, but ensure the agreement is water tight. If you need a tenancy agreement, a guarantor agreement, or have any property issues, then our friendly team are waiting for your call. Please call us on 0330 123 1131 or visit our Landlord Services page for further information. Catherine Hartland-Watkins - Partner

Renting Homes (Wales) Act 2016

housing, landlord
Feb 01 | 2021

Renting Homes (Wales) Act 2016

Significant change is almost upon us here in Wales with the hope that the provisions of the Renting Homes (Wales) Act 2016 will be coming into force before April 2021.  The main provisions of the Renting Homes (Wales) Act 2016 include:
  • Tenancies and licences will be replaced with two types of "occupation contract" and standard terms will be introduced;
  • Landlords will be grouped into two groups - Community Landlords and Private Landlords;
  • Tenants will be known as "Contract holders" and new provisions will exist for Joint Contract Holders;
  • Rented properties must be fit for human habitation. Landlords must keep the structure and exterior of the property in repair and keep installations for the supply of water, gas or electricity, for sanitation, for space heating, and hot water in repair and proper working order;
  • Landlords will not be able to evict a contract holder just because they have complained about the condition of the property (retaliatory evictions)
  • A new procedure for Landlords to obtain possession of a property that has been abandoned.
It is important to note that when the provisions of the Renting Homes (Wales) Act 2016 come into force, it will apply to all existing tenancy agreements as well as future "Occupation Contracts". Private landlords need to take heed of a wealth of changes to tenancy laws and take all relevant necessary action.   Despite the provisions of the Renting Homes (Wales) Act 2016 Act not yet having come into force, the Welsh Parliament is already considering amendment in the form of the Renting Homes (Amendment)(Wales) Bill and addressing Section 21 eviction proceedings (commonly referred to as the "no fault" possession claim). The Covid-19 pandemic has led to emergency legislation in this area, leading to the Welsh Parliament having to shift focus and identify emerging evidence and changing trends in the housing sector since the Renting Homes (Wales) Act 2016 Act received Royal Assent.   The Housing Minister has reported that eviction proceedings should only be used as an "absolute last resort" and landlord should be proactive and seek to work with the tenant to address issues rather than evict at the outset. Rent Smart Wales is a useful resource for landlords and tenants and can be contacted despite the limitations caused by the Covid-19 pandemic.   The Renting Homes (Wales) 2016 Act and Renting Homes (Amendment)(Wales) Bill are significant as they represent the country's first primary legislation in housing law. Housing law practitioners must take extra care to ensure that the correct legislation is being applied to a particular case, depending on the location of the Property.   We look forward to working with Landlords dealing with the new legislation and the inevitable challenges that they will face. We offer FREE no-obligation initial expert landlord advice where we can discuss your situation. Please contact us today on 0330 123 1131 or contact us via our Landlord page www.newboldsolicitors.com/services/landlord-services/landlord-solicitors/   Joanna McBride - Solicitor

DIY Wills

wills
Jan 19 | 2021

DIY Wills

Dying without a Will can cause considerable stress for your loved ones.  In an effort to save money, many people are drawn to preparing either home-made Wills or instructing cheap online Will writing providers. Whilst this seems an attractive offer – it can be risky approach and end up paying a much higher price. What if errors are made?  What if the strict witnessing rules are not followed?  This could result in an invalid Will and risk leaving your family in a financial and emotional mess. Further, your estate could be eaten away by legal costs and unnecessary tax. We offer a friendly, professional Will Writing Service which may not be as costly as you think.  Please get in touch with our friendly team on 0330 123 1131 to find out more, or visit: www.newboldsolicitors.com/services/wills-probate/making-a-will/ Kate Alford – Legal Executive

Thinking about the future – Plan Ahead!

power of attorney
Jan 06 | 2021

Thinking about the future – Plan Ahead!

It is a proven fact that sadly in the UK one person every three minutes develops dementia. Many of us will be affected by a physical or mental incapacity as some stage in our lives. Should this occur; Who will deal with your property and finances?  Who will deal with your personal welfare?   If you wish a particular person/relative to look after your affairs for a long period of time you can grant them a Lasting Power of Attorney (LPA) and they will become your Attorneys. Any person over the age of 18 can make an LPA to cover such eventualities. Consider who you trust to carry out this role? You may appoint more than one Attorney should you wish and even appoint replacement Attorneys. An LPA is a legal document which will enable your Attorneys to make decisions for you should you not be able to do so yourself.  There are two different types of LPAs, one for Property and Financial Affairs and one for Health and Welfare. A Property and Financial Affairs Attorney can deal with opening and closing bank accounts, paying bills, buying, selling and maintaining property. A Health and Welfare Attorney can make decisions such as where you should live, what medical treatment you will require. Unless an LPA is put in place, an application will need to be made to the Court of Protection for a Deputy to act on your behalf.  This process is not only costly, but the process is very time consuming and complex.  So, whilst we all want to think about today, let’s take a little time to plan ahead! If you would like to discuss your requirements for a Lasting Power of Attorney we have a dedicated team available to speak to you, simply fill in the contact form blow, call us on 0330 123 1131 or visit: www.newboldsolicitors.com/services/wills-probate/power-of-attorney/ Kate Alford - Legal Executive [gravityform id="2" title="true" description="true"]

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