Buy to let landlords need to be aware of new regulations and government policies that will impact how they operate in 2018.
Mortgage regulations for portfolio landlords
Portfolio landlords, those with four investment properties or more, now need to adhere to the Prudential Regulation Authority’s (PRA) new regulations, which came into force in September.
The new rules mean that a landlord applying for a buy-to-let mortgage on a new property will be subject to the lender assessing the mortgages held on the entire portfolio before being offered a mortgage deal. We can provide landlords with guidance on how to manage their finances and be in the best position to apply for a new mortgage.
Mortgage Interest Tax Relief
Buy to let investors who own their properties directly, will lose more of their ability to offset mortgage interest from their profits before calculating their tax liability. In the 2018/19 tax year, landlords will only be able to offset 50% of their mortgage interest, falling to 25% in the 2019/20 tax year. By re-mortgaging, landlords can look to help to counterbalance the interest costs.
Minimum Energy Efficiency Standards (MEES)
New energy efficiency standards come into force on 1 April 2018. Properties rented privately will need to have an EPC rating of E or above from this point. Fines of up to £4,000 will be imposed if a property fails to meet this minimum energy standard. Landlords should look to get an up-to-date EPC rating now and if it falls below an E, look to take measures to improve the efficiency, such as cavity wall and loft insulation, better energy efficient appliances, replace light bulbs with Light Omitting Diodes and even look to replace old boilers with more efficient central heating systems.
We can assist landlords with a range of services including property maintenance, inventories, holding and managing deposits in a custodial deposit scheme, regular property inspections, sourcing appropriate insurances and protection, advising on mortgage requirements, plus much more.
If you’d like to find out more about our suite of landlord and buy-to-let services, contact us on 01869 248 339 or email email@example.com