Tuesday 25th June 2019

Buy-to-let landlords struggling to keep up with recent legislative reforms

A high number of landlords are struggling to keep up with new policy reforms, new research suggests.

Market Financial Solutions has surveyed more than 400 landlords to find out just how aware they are of new legislative and regulatory reforms that have been introduced.

The study found that 30% do not understand the changes to House in Multiple Occupation (HMO) licensing, which came into effect in October 2018 to stipulate on the minimum sizes of rooms.

In addition, 28% of respondents admitted to not fully knowing what the abolition of Section 21 means, while 27% of landlords were unaware of letting fees ban

When it came to tax, there was also major confusion, with 28% not understanding the reforms to inheritance tax that have changed the tax-free allowance on properties being passed down.

A quarter - 25% - did not know about the reforms affecting tax relief on mortgage repayments, which were implemented in April this year.

The majority of landlords said they were not in favour of these reforms.

Paresh Raja, CEO of Market Financial Solutions, commented: “The legislation and regulation governing the UK’s rental market is constantly evolving, and today’s research clearly shows that landlords are struggling to keep pace with the change.

“From HMO regulations to the abolition of Section 21, these are significant reforms that, for the most part, are rightly designed to protect tenants.

“Nevertheless, there’s evidently frustration among landlords who feel they are being unfairly targeted, particularly when it comes to the stricter taxes being introduced.

“It’s essential that anyone renting out a property – even if they would not consider themselves a landlord – understands all the new reforms and takes action to ensure their properties meet the necessary standards and their finances are structured in line with the new reforms.”

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