Sorry to be the bearer of bad news, but I thought you may want some exciting Christmas reading to look forward to.
I’m sure you’ve heard about some of these changes that will directly affect you, but I just wanted to put all the links/information in one place for you.
ALL OF THESE ISSUES ARE IMPORTANT AND WILL AFFECT YOU DIRECTLY –
PLEASE ENSURE YOU READ THIS POST
Believe it or not, these changes are positive for serious property investors and landlords.
All of these changes mean that professional/serious investors will benefit, and amateurs/speculators will be forced out of the market.
MORTGAGE INTEREST TAX RELIEF
- George is going to reduce your tax deductible costs
- You will be taxed on your GROSS rental income, rather than NET income
- If you own 5 or more properties, you may want to explore putting your properties into a Limited Company. Everyone’s situation is different though, so you need to get personal, professional advice. My/our accountant, ERC Accountants, have provided the attached document with more information.
- Starts 6th April 2017
STAMP DUTY CHANGES
- If you’re buying a 2nd property (therefore, by default, a buy-to-let property) you will pay an additional 3% Stamp Duty
- The previous starting level of £125,000, is being reduced to £40,000
- Loophole: own 15 properties or more in a company? You’re not affected!
- 1st April 2016
- The Treasury’s consultation closes on 1st February 2016. They will then finalise the finer details and release the information.
SMOKE ALARMS & CARBON MONOXIDE DETECTORS
- It is now compulsory for landlords to provide working smoke alarms in rented properties
- Must provide one on each floor
- Carbon Monoxide Detectors are only required in properties with solid fuel-burning appliances, although they are recommended regardless of this legislation
- Burden of proof is on the landlord
- This is also a requirement for the Selective Licensing in Liverpool
- Can you get free smoke alarms in Liverpool?
- Came into force on 1st October 2015
- You mean you haven’t my read my blog on this yet? http://homesure.flywheelsites.com/smoke-alarms
IMPORTANT NOTICE TO FULLY MANAGED LANDLORDS:
- Although this is solely your responsibility, we will be testing all smoke alarms/Co2 detectors when carrying out our quarterly inspections
- We will supply & fit smoke alarms on the inspection there and then and provide proof for your protection
- You will then be charged £20 for 1x alarm; £35 for 2x alarms; or £50 for 3x alarms. You will get the alarms securely installed; photo evidence of installation; and a certificate to show your compliance.
- If you do not want us to do this, please confirm this in writing
- If you want to order any additional alarms for other properties, please use this form:- https://homesureproperty.typeform.com/to/CU37c9
SELECTIVE (LANDLORD) LICENSING
- You MUST register your rented property with the council here:- http://liverpool.gov.uk/business/private-landlords/licences-and-standards/landlord-licensing/
- You register first, and then wait for the council to contact you
- Only applies to properties under Liverpool Council (i.e. not Sefton, Knowlsey, Halton, etc.)
- You must comply with the terms and conditions (window keys, smoke alarms, management contact details, etc.)
- You can get a 50% discount for either registering with ‘CLASS’, or using a reputable/regulated agent (like us J)
- Came into force on 1st April 2015
- No licences have been issued yet
- Our Mark Loughnane has been sending out updates, but the updates are now in the hands of the Council. We have no more information than you at this stage!
- You can read his blog here:- http://homesure.flywheelsites.com/liverpoollicensing
- Official information from council website here:- http://liverpool.gov.uk/business/private-landlords/licences-and-standards/landlord-licensing/
If all of this is making you want to sell up and get out, please get in touch on 0151 722 22 22 to discuss your options.
- value your property to sell on the open market
- sell it ‘off market’ direct to investors
- look at alternative renting styles to increase your income