Member Article

Could new laws for landlords prove a property nightmare?

Adore Properties MD, Jeremy O’Connor, explores what recent announcements on changes to lettings regulations mean for north east landlords…

Although somewhat overshadowed by an awkward cough and falling decor, the recent Tory Party Conference did bring with it some big statements, particularly in the property sector.

Communities Secretary, Sajid Javid, rattled out a series of announcements that could have significant implications for both landlords and tenants in the coming months.

All landlords and lettings agents must now register with an appropriate organisation to satisfy minimum training requirements and comply with an industry code of conduct. Other announcements include an update on the much-debated ban on lettings fees (it’s coming) and incentives for landlords to offer 12-month contracts.

These measures follow on the back of legislation on buy-to-let stamp duty and investments, mortgage interest tax relief, and energy efficiency regulations, as well as wider data privacy laws (GDPR) which will take effect from May 2018.

With so much change on the horizon, where does it leave landlords, both existing and potential?

Whilst we support many of the announced moves, a clear step in the right direction to rid the industry of unscrupulous landlords, they can also cause confusion and headaches; creating barriers to those looking to invest in buy-to-let options as a pension alternative or similar. Without solid advice and proper guidance even the most well-meaning of landlords could find themselves falling foul of the law.

Changes will also force some companies, who currently rely on fees for up to 25% of their income, to diversify into wider offerings; which is sure to have an interesting effect on the market as they look to find new revenue streams.

Property has always been viewed as a sure investment however, with regulations getting tighter, and the fines for failing to comply getting higher, the need to ensure your properties are managed correctly has never been greater.

This was posted in Bdaily's Members' News section by Adore Properties - Stockton .