To get the most of your current portfolio and any new market opportunities, you need to keep on top of the latest laws and regulations. Legislation is regularly updated, and there are several proposed changes on the cards, so below is everything landlords need to be aware of in 2022.
Tax returns and tax reliefs
Online self-assessment tax returns for the 2020-21 tax year need to be submitted by January 31, 2022. This is the first return that includes the new mortgage interest tax relief credit that enables landlords to offset 20% of their mortgage interest payments.
Capital gains
When selling a buy-to-let property, you now have 60 days to report and pay your capital gains tax, which is double the previous 30-day limit. This was changed in October 2021, giving you a little longer to get your affairs in order.
Energy-efficiency laws
There hasn’t been an update provided by the government at this stage, but a consultation has taken place to assess whether all newly let properties should achieve a minimum of band C on energy performance certificates. If it is confirmed, a deadline of 2026 will likely be agreed.
Stronger rental market
The rental market has slowly stabilised over the past 3-6 months, and this is expected to produce better yields for landlords in 2022. Prices could rise by 3.5% this year in London, as renters begin to drift back to the capital after the slow down of COVID restrictions.
Evictions and deposits
The outcome of the Renters’ Reform Bill is still in the air due to delays caused by the pandemic. A white paper is due to be published soon which should provide some idea as to whether Section 21 will be abolished. The bill could also see the introduction of ‘lifetime deposits’ that move with the tenant, replacing existing rental security deposit schemes.
Buy-to-let mortgages and inflation
With inflation steadily rising and the Bank of England’s base rate also increasing at the end of 2021, investors should keep a close eye on buy-to-let mortgage rates. As mortgage prices will be higher, lenders will likely look at new ways to attract investors by putting together attractive deals and incentives.
Pet-friendly tenancies
The recently launched Model Tenancy Agreement means that landlords can only object to a pet request in writing if they have a ‘good reason’. For example, this could be because the property is too small or ownership is not a practical option, so make sure you are aware of this new change for the year ahead.
Carbon monoxide requirements
New laws were introduced in November 2021 to ensure carbon monoxide alarms are fitted in private and social rented properties that have gas boilers, fires and similar appliances. The alarms must be installed along with any new appliances and faulty smoke and carbon monoxide alarms must also be replaced.
Green mortgages
The financial sector set some ambitious ‘green’ targets at COP26 last year, which could mean there is a bigger emphasis on green mortgages this year. In real terms, this should translate into lower rates for landlords willing to invest in energy-efficient properties. Banks lending at lower rates for landlords investing in sustainable improvements could also start to increase in 2022.
Letting Property in North West London
If you’re looking to let your North West London property in 2022, Regal Estates can help. We have over 25 years of experience in the NW10 lettings market, helping countless landlords successfully let their properties. We offer a range of lettings services from let only and rent collection to full property management or block management. All our services include our advice and expertise in lettings legislation and regulation to help you keep up to date with this constantly evolving industry. For more details on our lettings services in North West London, contact our friendly lettings team today on 020 8459 2530 or email lettings@regalestate.co.uk.