Are you up to date with industry regulations and legislations? Seasoned landlord and NLA representative, Richard Blanco, gives a useful regulatory round-up of new legislation, including tax, immigration and mortgage changes.

1. @nationalandlord @PorticoProp#postbrexit

2. TAX CHANGES AND LANDLORD SENTIMENT
• Now In Force
• Replacement of Wear & Tear Allowance
• 3% Stamp Duty Surcharge
• Still To Come
• Withdrawal of Higher rate tax relief on finance costs begins 6 April 2017
• Phased over 4 years, moving 1 in 4 to higher tax band
• Lack of awareness & understanding…..
• 51% say no change, but only 56% understand
• Strong rebound in optimism for own letting business
• 39% to 54% rate good/v good
• 12% Report softening of tenant demand
• 64% expect decrease in profitability because of tax changes
(71% have borrowings)
• 1 in 4 consider moving to Ltd Company
• 33% think Brexit will have a negative impact
• LHA landlords historic low of 16%
#postbrexit

3. LANDLORDS HAVE ADOPTED A MORE NEUTRAL APPROACH
Perceived Impact of Brexit on the PRS (%)
All
Significant positive
impact
Slight positive impact
Will have no impact
Slight negative impact
Significant negative
impact
Q11ai To what extent, if any, do you believe the result of the recent EU referendum will impact the Private Rental Sector?
Base: All (900)
Overall, however, sentiment is still, significantly, net negative, with 3 times as many landlords feeling the vote will
have a negative impact than positive (33% vs 10%).
KEY
METRIC
Profitability:
Net positive
10%
No. of properties
% Positive % Negative
1 7 36
2-3 6 37
4-5 13 32
6-10 13 31
11-19 11 30
20+ 15 27
25Not sure
(7%)
(22%)
(29%)
(14%)
(28%) (Q2 2016 results)
#postbrexit

4. BANK OF ENGLAND BTL REGULATION
• Compulsory stress test of 5.5% (commercial exempt)
• Some lenders increased rental cover to 145%
• New criteria for portfolio landlords
• Will affect maximum loan to value in London
EXAMPLE
• 75% of £620,000 is £465,000
• Rent is £2,400
• Mortgage of 2.49% would be £964 per mth
• Mortgage of 5.5% would be £2131 per mth
• X 145% = £3,090
• Max loan would be £361,128 = 58% LTV
#postbrexit

5. REGULATORY HEADLINES
• 2016 Housing & Planning Act
• Banning orders & database, civil penalties, client money protection, electrical safety checks
• Rent Smart Wales
• Compulsory registration & licensing/accreditation
• Right To Serve Section 21 Notice
• EPC, DPC, GSI, How To Rent
• End of No Fault Eviction in Scotland
• Consultation until 25 Dec
• Lower Welfare Benefit Caps
• From £22k to £23k (£20k outside London)
• Minimum Energy Efficiency Standard
• No F & G from April 2018
• Homelessness Reduction Bill
• “A person in respect of whom a valid notice under section 21 of the Housing Act 1988 (…..) has
been given is to be treated as homeless from the date on which that notice expires”
• Licensing & Article 4 Directions
#postbrexit