All of these issues are important and will affect you directly. Please ensure you read this post.
Believe it or not, these changes are positive for serious property investors and landlords. All of these changes mean that professional/serious investors will benefit, and amateurs/speculators will be forced out of the market.
Mortgage interest tax relief
- George is going to reduce your tax-deductible costs
- You will be taxed on your GROSS rental income, rather than NET income
- If you own 5 or more properties, you may want to explore putting your properties into a Limited Company. Everyone’s situation is different though, so you need to get personal, professional advice.
- Our accountant, ERC Accountants, have provided the attached document with more information.
Starts 6th April 2017
Stamp Duty changes
- If you’re buying a 2nd property (therefore, by default, a buy-to-let property) you will pay an additional 3% Stamp Duty
- The previous starting level of £125,000, is being reduced to £40,000
- Loophole: own 15 properties or more in a company? You’re not affected!
- 1st April 2016
- The Treasury’s consultation closes on 1st February 2016. They will then finalise the finer details and release the information.
- Please get in touch with our team.
Smoke alarms and carbon monoxide detectors
- It is now compulsory for landlords to provide working smoke alarms in rented properties
- Must provide one on each floor
- Carbon Monoxide Detectors are only required in properties with solid fuel-burning appliances, although they are recommended regardless of this legislation
- Burden of proof is on the landlord
- This is also a requirement for the Selective Licensing in Liverpool
Came into force on 1st October 2015
- You mean you haven’t my read my blog on this yet? http://homesure.flywheelsites.com/smoke-alarms
Important notice to fully managed landlords
Although this is solely your responsibility, we will be testing all smoke alarms/Co2 detectors when carrying out our quarterly inspections
- We will supply & fit smoke alarms on the inspection there and then and provide proof for your protection
- You will then be charged £20 for 1x alarm; £35 for 2x alarms; or £50 for 3x alarms. You will get the alarms securely installed; photo evidence of installation; and a certificate to show your compliance.
- If you do not want us to do this, please confirm this in writing
- If you want to order any additional alarms for other properties, please use this form: https://homesureproperty.typeform.com/to/CU37c9
Selective (landlord) licensing
- You MUST register your rented property with the council here:- http://liverpool.gov.uk/business/private-landlords/licences-and-standards/landlord-licensing/
- You register first, and then wait for the council to contact you
- Only applies to properties under Liverpool Council (i.e. not Sefton, Knowsley, Halton, etc.)
- You must comply with the terms and conditions (window keys, smoke alarms, management contact details, etc.)
- You can get a 50% discount for either registering with ‘CLASS’, or using a reputable/regulated agent (like us)
- Came into force on 1st April 2015
- No licences have been issued yet
- Our Mark Loughnane has been sending out updates, but the updates are now in the hands of the Council. We have no more information than you at this stage!
If all of this is making you want to sell up and get out, please get in touch on 0151 722 22 22 to discuss your options.
- Value your property to sell on the open market
- Sell it ‘off market’ direct to investors
- Look at alternative renting styles to increase your income