UK Property - What landlords need to know in 2023

Which rules and regulations around property lettings are changing in 2023? We round up the key dates and details affecting landlords in England this year.

What UK buy to let landlords must know going into 2023

Wimbledon Houses, London, United Kingdom

Renters' Reform Bill

Following the release of the Government white paper “A Fairer Private Rented Sector” in June 2022, it's likely the Bill will be introduced in the current Parliamentary session, ie. by May 2023, and is expected to be passed by spring 2024. Time will then be given to implement the changes. 

The Bill's intention is to redress the balance between landlords and tenants in the Private Rented Sector. Here are the main expected changes: 

  • Abolishment of Section 21 notices - This will end “no-fault evictions”, meaning landlords will have to give a specific reason for wanting their property back; Section 8 notices will be amended (and probably renamed) to include additional grounds for possession, including getting a property back for a landlord’s own/family use, or if a landlord wishes to sell the property
  • End of fixed-term Assured and Assured Shorthold tenancies - These will become periodic, with tenants having to give at least two months’ notice at any time in order to end a tenancy
  • Rent increases limited to once a year - Landlords will have to give two months’ notice of the change in rent – and tenants will be able to challenge this increase
  • Decent Homes Standard applied to the private sector - Homes must be free of serious health and safety hazards and landlords must keep their properties in a good state of repair
  • Introduction of property portals - This will help landlords understand and show compliance with their legal obligations; landlords will be required to join the portal
  • Improved court proceedings for possession & strengthened mediation services - For both landlords and tenants, with the intention of preventing avoidable evictions
  • Bans reversed - Banning families with children and those in receipt of benefits will no longer be allowed
  • Right to keep pets enforced - Landlords will not be able to unreasonably withhold consent when a tenant asks to have a pet, and there will be changes to permitted payments under the Tenant Fees Act 2019 to allow landlords to ask tenants to take out pet insurance

Changes to Energy Price Guarantee & EPC ratings

It's proposed that all new tenancies must have an EPC rating of C by 2025, with all existing tenancies having an EPC rating of C by 2028. A £10,000 cap to get a property up to a C rating (before an exemption may be allowed) is likely. As a guide, the anticipated average spend to go from a D to a C rating will be less than £1,000.

Capital Gains Tax

Reductions in the Capital Gains Tax (CGT) allowance was announced in the Government’s Autumn 2022 statement – CGT is being reduced from £12,300 to £6,000 in April 2023, with a further reduction in April 2024 to £3,000.

Making tax digital for income Self Assessment

Landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income to HMRC. This was due to be introduced in April 2024, but will now be introduced as of April 2026. This will apply to landlords with an income of £30,000–£50,000 from April 2027.

Regulation of Property Agents (RoPA)

RoPA is still being considered by the Government but there's no indication that it's high on their to-do list. As such, it's unlikely to happen in this parliament.

If you'd like to hear more about the changes affecting landlords this year or discover the services we provide, please contact our experienced Lettings Team.

Courtesy: Knight Frank

Knight Frank

Disclaimer: Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, funding organisations, corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. Important Notice: © Knight Frank LLP 2022 This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.

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