It is said that investing in property is one of the smartest investments you can make. Even though house prices are expected to fall up to 10% over the next year across the UK thanks to high mortgage rates and inflation putting a squeeze on budgets, having a property to rent out or eventually sell will more often than not produce steady returns.But over the past few years, there is no denying that things have changed when it comes to being a landlord in Stoke. There are many changes to be aware of and many landlords are now looking to sell house fast as returns have been hit, and it is now much harder to evict problem tenants for example.So if you are thinking of investing in Stoke, let us guide you through the ins and outs of what it means to be a landlord in 2023 and beyond. What are the new landlord rules for 2023?There are a host of new requirements for landlords to be aware of thanks to the Private Tenancies Act, which was introduced in 2022 and came into force in April 2023.To summarise: From 1 April 2023, landlords must provide tenants with a “Tenancy Information Notice” within 28 days of the tenancy’s start. This notice details the landlord’s contact, rent details, and tenancy length. Landlords failing to provide this notice can be fined up to £2,500.If tenancy terms change, landlords have to notify tenants within 28 days. This includes rent adjustments. Failing to provide this notice can lead to fines of up to £2,500.Landlords must offer written receipts for any cash transactions. These receipts should detail the payment amount, date, remaining dues, and other relevant details. Not providing receipts can lead to fines of up to £2,500. Continuous non-compliance might lead to court proceedings.Starting 1 April 2023, tenancy deposits can’t exceed one month’s rent. If a deposit taken before this date was higher, the tenant’s agreement is required to renew the tenancy. Withholding excess deposits without agreement becomes an offence. Breaching the new deposit limits could result in penalties of £500 to £2,500.Landlords now have 28 days (previously 14) to safeguard a tenancy deposit and 35 days (previously 28) to inform tenants about this safeguarding. Failure to protect deposits could result in fines up to three times the unprotected deposit amount. Interest Rates: They went up 13 times in a row, making mortgages more expensive. This means landlords might have to raise rent or pay some mortgage costs themselves.Taxes: Landlords are now paying more due to increased stamp duty charges and changes in mortgage interest relief.New Renting Rules: A new law, the Renters Reform Bill, is coming. It’s going to make evicting tenants harder, but there are some cases where it might be quicker. Plus, fixed contracts for renting might go away, meaning tenants can stay as long as they like, making planning tricky for landlords.Extra Fees: Landlords might have to pay to register under a new system, which could lead to fines if they don’t handle complaints well.Rent Controls: There will be stricter rules on how much and how often landlords can increase the rent. Calculate the “gain” by subtracting the original buying price from the selling price.You can reduce this “gain” by accounting for costs related to buying, selling, and improving the property.Each year, there’s a set amount you can earn in gains without paying tax – this is called the Capital Gains Tax-free exemption. High earners will pay a 28% tax on property gains.If you earn a basic income, the tax varies based on the gain’s size, ranging from 18-28%.
Being a Landlord in Stoke-on-Trent: Your Questions Answered
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