In 2020, there will be a number of changes to legislation that could affect how you, as a landlord, manage and let out your rental property. If you’re a landlord in the UK, read on to find out what changes you should be aware of in the upcoming year, and when they will be happening.
1. New energy efficiency standards
As of April 2018, all properties with new and renewed tenancy agreements had to have a minimum EPC (Energy Performance Certificate) rating of E or above. This piece of legislation will be extended this year – from April 2020, all existing tenancy agreements must also have a minimum EPC rating of E. Hopefully your rental property already conforms to this standard, but if not, now is the time to start making changes. And even if your property is currently OK, be aware that the minimum required rating may rise in the future.
2. Tax relief
As of 2017/18, the process to phase out some tax relief for landlords began. The tax relief landlords used to be able to claim covered mortgage payments, fees and interest on loans used to purchase furnishings. This tax relief has been gradually reduced over last few years, to be replaced by a basic tax reduction of 20% on either financial costs, profits or adjusted total income (whichever is smallest). In 2020, the old system will be entirely phased out and the new system put in place. You can find out more details about this on the gov.uk website.
3. Electrical safety checks
According to the government’s Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, landlords will now be required to ensure that every electrical installation in their property is tested every 5 years, at least. The landlord will need to use a qualified person to carry out the tests, get a report about the inspection and give a copy of this report to their tenants within 28 days. Failure to do so could result in a substantial fine. This new rule will come into force in July 2020 for new tenancies, and will expand to cover existing tenancies from April 2021.
Do you have a property to let in Bristol? Gough Quarters can help you with every aspect of renting your property, including the important legal stuff, so get in touch today for more information.
Cover photo by Brooke Lark on Unsplash