With the Government continually introducing new policies regarding property and the way it is taxed and managed, a new survey has revealed that many UK landlords are struggling to keep pace with the changes.
Bridging lender Market Financial Solutions (MFS) has conducted research that has found around 30 per cent of landlords do not understand the changes to House in Multiple Occupation (HMO) licensing, while a further 28 per cent are not aware of the abolition of Section 21 eviction notices.
The study also shows that 27 per cent are uncertain about the tenant fees ban, while an additional 19 per cent understand the changes, but don’t know what they will mean for them and their business.
More worryingly, 28 per cent do not comprehend the reforms to Inheritance Tax that have changed the tax-free allowance on properties being passed down, with a further 25 per cent struggling with the reforms on mortgage interest relief.
“The legislation and regulation governing the UK’s rental market are 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,” said Paresh Raja, Chief Executive Officer of MFS.
“Nevertheless, there’s evident 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,”
The nature of the property industry is constantly changing, which can make planning for the future extremely difficult. At RDP Newmans, we have our finger on the pulse of property legislation and can help you to adapt your plans to meet these ever-changing requirements.