Property Update 2019

Posted by Robinson Allfree on 9th July 2019 -

Here are 5 key things either to remind you of recent changes or to alert you to upcoming ones whether you are a property practitioner, agent or investor -

 

• For transactions completed on or after 1 March 2019, the deadline for paying SDLT and filing the SDLT return has been reduced to 14 days. So, property practitioners, it is even more important to make sure you have your company UTRN and individual NI numbers early on so that there is absolutely no delay post-completion on getting your client's SDLT return submitted!

 

• From 1 April 2019 (companies), or 6 April 2019 (others), all non-resident investors have had to pay tax on gains from commercial property disposals. This has the effect that many companies who are not currently registered for corporation tax will now need to register, just to report the disposal.

 

• Pursuant to the Tenant Fees Act 2019, there is now a ban on tenant fees for assured shorthold tenancies and licences to occupy in the private rented sector. This change means most additional fees are now banned, such as any charges for carrying out an inventory or referencing. Therefore alongside rent and deposits, agents and landlords are only permitted to charge tenants fees associated with; a change or early termination of a tenancy when requested by the tenant; utilities, communication services and Council Tax and payments arising from a default by the tenant such as replacing lost key. Significantly, this will prevent landlords from recovering possession of their property via the section 21 Housing Act 1988 procedure until they have repaid any unlawfully charged fees.

 

• From 1 April 2020, a landlord will not be able to 'continue to let' a domestic property where its energy efficiency rating falls below an E - as shown on the property's Energy Performance Certificate. Pursuant to the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, a landlord cannot currently grant a new Assured Shorthold Tenancy if the property falls below an E. However, from 1 April 2020, MEES will also apply to any subsisting AST - this is likely to catch many landlords out so it is worth planning for this now and bearing it in mind when purchasing a property with a tenant already in situ.

 

• Next year it is likely that we will see a new 1% increase to stamp duty costs for non-UK residents buying residential property in England and Northern Ireland. The charge will apply to any person who is non-resident in the UK, including certain UK-resident companies which are controlled by overseas shareholders. Watch this space!