Hi
Ref: Ref: Latest News for Landlords
Just reminding members of the main topics that will be of interest to all members. Please note the last paragraph of the court fees going up again.
Discrimination Laws Under the Renters' Rights Bill
New laws under the Renters' Rights Bill will increase landlords' legal obligations regarding discrimination. This includes tighter scrutiny on tenant selection, ensuring no unlawful discrimination based on race, gender, disability, or family status.
Landlords must now document decisions more thoroughly and may need to provide evidence of fair treatment during disputes or audits. We will keep you informed when this Act becomes law.
Buy-to-Let (BTL) Tax Warning
Tax experts are urging landlords to make use of their annual Capital Gains Tax (CGT) exemption—currently £3,000 per person (from April 2024)—before the tax year ends. With the threshold significantly reduced from previous years, failing to sell or restructure property portfolios in time may result in higher tax liabilities, especially for those looking to divest.
Bank of England Holds Interest Rates at 4.5%
The decision to maintain the base rate at 4.5% reflects continued caution over inflation. For landlords, this means mortgage rates remain relatively high, affecting buy-to-let profitability and refinancing strategies. Fixed-rate borrowers will be less affected, but those on variable rates may face ongoing financial pressure.
New Nurses Priced Out of Private Renting
Shelter reports that nearly half of local councils in England are unaffordable for newly qualified nurses to rent in the private sector. This highlights a growing affordability crisis and could influence local authorities' policies on housing support, zoning, and rent control, especially in urban areas with high housing demand.
EPC Rating Compliance Warning
A bank director has warned landlords not to delay upgrading their properties to meet the proposed minimum EPC rating of C. While the government has not yet enforced the rule, properties below this threshold may soon become unrentable. Landlords face the risk of decreased demand and penalties if they do not act proactively.
Alternative Deposit Schemes on the Rise
Tenants are increasingly opting for alternatives to traditional cash deposits, such as deposit insurance or subscription-based schemes. For landlords, this trend presents both opportunity and risk—while it can widen the tenant pool, it may also complicate claim processes for property damage or unpaid rent.
Tenants on Benefits Need More Government Support
Propertymark has raised concerns that welfare reforms could leave vulnerable tenants without enough support. They're urging the government to ensure housing allowances match rental market realities to prevent arrears and eviction rates from rising, which would impact both tenants and landlords.
Luxury London Rentals in Short Supply
The number of luxury homes for rent in London has declined, causing rents in that segment to rise over 30% compared to pre-pandemic levels. Landlords with high-end portfolios are benefitting from increased yields, but affordability and market volatility remain concerns.
Court Fees are Increasing
The UK Ministry of Justice has announced increases to various court and tribunal fees, effective from April 1, 2025, subject to parliamentary approval. These adjustments aim to align fees with inflation and support the operational costs of His Majesty's Courts and Tribunals Service (HMCTS).
Key Fee Increases Affecting Landlords:
- Possession Claim (County Court): The fee for filing a possession claim in the County Court will rise from £391 to £404.
- General Application (On Notice): The cost for general applications made on notice, excluding those under the Protection from Harassment Act 1997 and Court Fund payouts, will increase from £303 to £313.
- Warrant of Possession: Applying for a warrant of possession will see a fee increase from £143 to £148.
- Injunction Application: The fee to issue an injunction will go up from £365 to £377.
- Hearing Fees:
- Multi-Track Cases: The hearing fee for multi-track cases will rise from £1,175 to £1,334.
- Fast-Track Cases: For fast-track cases, the fee will increase from £545 to £619.
These adjustments are part of a broader initiative affecting 171 court and tribunal fees, with most increasing by 3.2% to reflect the Consumer Price Index (CPI) change between March 2023 and March 2024. A smaller number of fees will see a 13.5% increase to account for backdated inflation to March 2022.
The additional revenue generated is intended to enhance service delivery within HMCTS, subsidise services that are free of charge, and reduce the overall financial burden on taxpayers. The "Help with Fees" remission scheme remains available for individuals with lower financial means who may struggle to afford these fees.
Landlords should review these changes and plan accordingly, especially when initiating legal proceedings after April 1, 2025. For a comprehensive list of the updated fees, refer to the official government announcement.
British Landlord Association
Legal Team
01293 855700
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