London Property Newsletter March 2021 - Budget and Landlord Regulations
The Budget March 3rd – Key Issues
Capital Gains
There was much speculation that capital gains tax will be increased next month. The Government’s reasoning behind this is that they believe the same tax rates should be applied in both income tax as well as capital gains.
However, Rishi Sunak has avoided making any change in this area for now which has come as welcome relief for Landlords and people with second homes.
Stamp Duty
The Chancellor has confirmed an extension to the Stamp Duty Deadline, keeping relief at £500k until June 30th and then tapering down to £250k by September 30th. After which it will revert to its normal bands starting at £125k.
This is a welcome extension for most home owners but still creates a cliff edge from September 30th. It would be better to simplify this tax and making moving home less restrictive but for the time being the current crisis has been avoided.
Rent Grants
No direct financial assistance was announced for Renters in the budget but the furlough scheme has been extended until September which will provide support for those that benefit from this scheme.
With no additional support for tenants that are already building up arrears but have also continued to benefit from protection from eviction due to the crisis, things can only get worse for them and Landlords with mortgages to pay who are building up their own arrears.
This has got to disappoint both Tenants and Landlords as both can be in stressful situations depending on their current circumstances.
Return of 95% Mortgages
This looks like and effort to stimulate the First Time Buyer market, however, tt would be available to all borrower types – not just first-time buyers – on all properties up to the value of £600,000 from April.
Landlords – Have you checked your property has the correct Electrical Certificate?
The government announced mid last year, that all properties that are rented under existing tenancies need to ensure they have an electrical certificate that complies with the latest 18th edition regulation revision of 2018. This means you need to have an electrical certificate that was done on or after January 2019.
A delay on this has been requested by various agencies to the Housing Minister Chris Pincher, due to the added issue presented by the COVID crisis, but no leeway has been given. We urge all landlords to ensure their Electric Certificate is up to regulations and to be done before the 1st of April.
To read the full article and the Electrical Safety Standards please click here: Alert over Electricity Checks as Government digs over Deadline, Electrical Safety Standards
Our February Success Story
Bergen House SE5
By Nik M
I recommend James and the team without hesitation….
“James and the team were amazing.
Out of all the agents we invited to appraise the property, James was the most down to earth and had the most pragmatic approach to the sale: present the property well, set a good price, generate interest, and drive the price up through competition to balance a quick sale and a good price. That’s exactly what happened, and we sold for over the asking price, which was a great result in a skittish market.”
To Read the full review or to check out our previous review please click here: Fish Need Water Reviews
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Call us on 020 3199 3446 or email us at info@fishneedwater.com
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