New Legislation - What you need to know
Landlords must ensure that they comply with all legal requirements. Below is some of the recent legislative changes that have been introduced.
Right to Rent - This policy is designed to deter illegal immigration and prevent illegal immigrants from renting a property as their only or main home in the UK. Simple documentary checks will be carried out to establish a person's 'Right to Rent' before entering into a tenancy agreement. To avoid any discrimination; these checks will be carried out on all prospective tenants.
Deregulation Act - Section 33 of the Deregulation Act 2015 prevents 'retaliatory eviction'. This is where landlords, when faced with a request for repairs, serve their tenants with a Section 21 notice in order to terminate the tenancy, Section 21 of the Housing Act 1988 offers landlords a means of terminating a shorthold tenancy without having to give a reason or prove fault on the part of the tenant. The new provisions prevent private landlords from issuing tenants with a Section 21 notice if there is evidence that repairs are required to the property.
Finance Bill - Clause 24 of the Finance Bill aims to remove landlords ability to deduct from taxable income their finance costs related to residential property, replacing this relief with a tax 'reduction' equivalent to the basic rate of Income Tax. In practice this will result in those landlords with an income exceeding the upper threshold of the basic rate being taxed a significant proportion of their turnover, rather than profit.