CSC Grays is urging buy-to-let landlords, if they have not already done so, to review their property portfolio and consider if their properties and business objectives fit with the government’s proposed legislation.
The changes are not expected to come into force until 2024 and the intervening time gives landlords time to seek professional advice to understand the likely impact of the Bill which will abolish a landlord’s right to impose a Section 21 eviction, see changes to the term, rent, and rent review process, and will introduce a two-tier system of fines and criminal offences for the main areas of landlord compliance.
The Bill will be implemented when it receives Royal Assent and will have two stages with the government expected to provide at least six months’ notice of the first implementation date after which all new tenancies will be periodic and governed by the new rules. When the second implementation date is set, all existing tenancies will also be governed by the new rules.
Guy Coggrave, managing director, CSC Grays, said: “Landlords should be reviewing their portfolios and making sure under the proposed legislation that their properties can comply, deliver a reasonable return on investment, and still meet their objectives. For some now may be a sensible time to restructure or exit portfolios making the most of the current relatively low capital gains tax position, which many well informed commentators believe is likely to increase, particularly if we have a change of government.
“Being equipped with the correct professional advice will give landlords the opportunity to review the value of their property and consider other options such as restructuring their portfolios or investing elsewhere such as in commercial property. For those remaining in the sector, having the right management systems and advice will be essential.”
