With more than 20,000 fires in homes in the UK caused by electrical appliances, the need for electrical safety in residential buildings is vital.
To help landlords and letting agents get started on preserving the safety of tenants in the communal areas of their residential lettings, here’s our guide to maintaining electrical safety.
What does the law demand?
Landlords are responsible for ensuring residents and visitors are in a safe space, including protecting them from electrical faults and fires caused by a fault.
Electrical safety in rented properties is covered by several laws. Most recently, the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 require landlords to:
- Ensure that all electrical safety standards are complied with during any period in which the residential premises are occupied under a tenancy
- Ensure every electrical installation in the residential premises is inspected and tested regularly by a qualified person. This is every five years unless an inspection specifies a shorter period.
- Provide a copy of the electrical safety report to their tenants and local authority if requested
Landlords who don’t comply with government standards will find themselves held accountable and subject to substantial fines.
What is a communal area?
When considering electrical safety in communal areas, landlords need to think in broad terms about what those communal areas include:
- Entrance halls
- Foyers
- Kitchens and bathrooms
- Stairwells
- Landings
- Pathways
- Parking areas
- Gardens
- Parking areas
This means inside and outside spaces with electrical facilities must be maintained equally conscientiously.
What steps can landlords take to ensure electrical safety?
Firstly, be aware of what’s happening in your building by walking through it regularly and looking for changes, such as broken equipment or loose sockets.
Also:
- Conduct regular risk assessments, identifying hazards, and broken or faulty electrical equipment, including items such as emergency lighting and sockets.
- Remove, fix or replace broken or faulty equipment as soon as possible.
- Keep records of all actions taken regarding electrical safety.
Fire is a significant risk from electrical faults, so being prepared is also essential, which means:
- Putting systems in place to check regular fire safety procedures
- Compliance with current fire safety regulations, making sure that the suitable alarms, equipment, evacuation procedures and signage are in place to deal with fire emergencies
- Check that fire doors are working correctly and aren’t wedged open.
- Ensure that communal areas aren’t obstructed or used as storage areas and that evacuation routes are clear.
All of this takes time and effort, but, as for all safety issues, prevention is better than cure; it’s crucial to be proactive when managing potential hazards.
Maintaining up-to-date records means regularly reviewing electrical safety, but it will help you should you need to make an insurance claim.
Do you need help keeping on top of block management?
Maintaining electrical safety in communal areas isn’t just about preventing electrical shocks but also minimising fire risk from faulty wiring or appliances.
When inspecting communal areas, you must understand these risks and that risk assessments reflect the level of due diligence needed to address potential hazards. This means regular and comprehensive block inspections.
As a landlord or letting agent, it can be challenging to find the time to keep on top of regular inspections, but at No Letting Go, our estate and block management services provide a comprehensive solution to maintaining safety standards, with inspections conducted at intervals agreed with the landlord to include:
- Fire and Safety
- Fire Assets
- Communal areas
- Estate and block cleanliness and condition
- Maintenance
We can also produce bespoke reports to meet a landlord’s specific property or tenancy needs.
If you would like to contact us
No Letting Go – partnering with landlords to keep rental properties safe
At No Letting Go, we pride ourselves on the service we provide to our customers. If you would like to discuss how we can help maintain safety in all spaces of your residential premises, our expert team is ready to offer support and advise you so that tenants and visitors can feel safe in your properties.
Our local support and national networks can also help streamline costs and reduce your workload by running inspection schedules, recording inventories and providing professional advice.
To learn more about our services for landlords and agents, contact No Letting Go today.
Insuring your rental property is just as important as insuring your own home, so here is our guide for landlords to get started on the right track when protecting their rental market assets.
What is landlord insurance?
Landlord insurance protects landlords and their properties from the risks that come with renting out a property. It offers specialist financial protection for a range of scenarios. So, when choosing insurance for your rental property, it’s essential to ensure that these scenarios are covered to avoid financial risk and to protect your ability to let a property.
Why do landlords need special insurance?
For the same reasons that homeowners need insurance, landlords also need insurance. But landlord insurance is specifically tailored to meet the needs and potential risks of renting a property.
Landlord insurance isn’t a legal requirement, but many insurers demand an appropriate level of insurance and tenancy agreements may also stipulate insurance needs.
The right insurance cover helps landlords avoid financial risks. Even though you can’t know what’s happening in your property all the time, at least insurance offers peace of mind that any risk is mitigated because you will have the financial means through your policy to deal with any problem.
What can landlord insurance cover?
Landlord insurance is specifically focused on the kind of risks that landlords can be exposed. Some insurance coverage is standard while other aspects are additional, but this is great for landlords because it allows them to create an overarching policy tailored to their needs.
Landlord insurance policies can cover the following:
- Buildings. It’s important to ensure the policy covers the cost of repairs and a complete rebuild.
- Contents. White goods, furniture, furnishings, fittings etc., lost or stolen. Tenants can insure their own belongings.
- Loss of income. Whether tenants fail to pay rent or the property becomes uninhabitable for a period, the loss of any rental income can be covered.
- Liability. Protecting against compensation claims made by tenants or visitors.
- Accidental damage. For example, breaking a window or putting a foot through the ceiling when in the loft.
- Tenant damage. Tenant deposits can cover the cost of some damage, but insurance can make up any shortfall.
- Legal cover. This can help with legal fees if a landlord has to go, or is taken, to court.
- Emergency assistance. For a broken boiler, split pipes, security, etc.
Multiple rental properties can also be insured under one policy when arranged with the insurer, making it easy for landlords to ensure that all of their properties have the right cover.
How much does landlord insurance cost?
The insurance cost depends on several factors, such as the property’s condition, the number of contents, any extras requested, rebuild expenses, etc.
When choosing your cover, it’s just as important to know what is excluded and what’s covered. A policy may seem cheap, but if it covers only some of what you need, it may be a waste of money because you can’t rely on it in the worst-case scenario.
When thinking about costs, also be aware of the excess charge. Choosing a higher excess may make your policy cheaper, but you might need to pay more for making a claim. Are you comfortable having the money when needed to cover the excess charge?
How do I find the right landlord’s insurance?
Find a policy that covers all you need and factors in any loss of rent. Decide the cover required by the value of contents and cost to rebuild. Also, consider the additional extras such as emergency cover or liability insurance.
You can use comparison sites, insurance companies or a specialist insurance broker to find the best deal, but importantly, seek specialist advice if you need more clarity about the coverage you need. Buying the right insurance is critical for reducing the impact of a potential disaster.
Finding the right insurance is just one of the many tasks facing landlords. If you’d like to discuss how No Letting Go’s local support national network could become your inventory partner, streamlining costs, including insurance premiums, and reducing your workload, then contact No Letting Go today.
Before investing in a House in Multiple Occupation (HMO) property, there are lots to consider. This guide will highlight the key issues to help you prepare to take that step.
What is an HMO?
Your property is an HMO (House in Multiple Occupation) if rented out by at least three people who are not from one ‘household’, such as a family, but share facilities like a bathroom and kitchen.
A large HMO is defined as a property that:
· Is rented to five or more people who form more than one household
· Requires some or all tenants to share toilet, bathroom, or kitchen facilities
· Has at least one tenant paying rent (or their employer pays it for them)
Large HMOs must have a licence if located in England or Wales. However, smaller properties rented to fewer people may still need a licence, and you need to check with your local council.
What responsibilities does an HMO landlord have?
In our blog, we have previously provided A beginners guide for HMO landlords, which provides details of the requirements placed on landlords. These are important because the responsibilities are broad in what they cover and specific in terms of what they require.
One example is that suitable bedroom sizes for HMOs are stipulated, so if you are thinking about applying for a licence, you need bedroom sizes that are at least:
· 6.51 square metres for a person aged 10 or over
· 10.22 square metres for two people aged 10 or over
· 4.64 square metres for a child under 10 years old
Again, this can vary between councils, and you need to understand the requirements in the council authority area.
You must also be aware that the local authority needs to be informed if:
· You plan to make changes to an HMO
· Your tenants make changes
· Your tenants’ circumstances change (for example, they have a child)
These specific demands on HMO landlords are in addition to the more apparent responsibilities like complying with HMO legal requirements, ensuring safety checks, providing furnishings, fixtures and fittings, maintaining communal areas and not allowing overcrowding.
The requirements placed on HMO landlords are comprehensive, so anyone considering investing in a House in multiple occupation property must be clear about them first.
What else do HMO landlords need to know?
Besides understanding their responsibilities, HMO landlords must be aware of their implications. No matter what property you rent, there will be challenges to address. But as an HMO landlord, you may need to consider the following:
• It can be harder to find financing for these types of rentals
• You need to find the right property to convert to an HMO
• Set-up costs can be higher
• Managing multiple tenants can be more challenging
• Tenant turnover may be higher
• Running costs may be higher
• Collecting rent from several individuals will likely present more work
• Maintenance costs can be higher
Making HMO management easier
Despite the potential challenges for an HMO landlord, the potential income is a big attraction. With the right support, the time needed to manage an HMO successfully can be substantially reduced.
The range of services, including pre-, mid- and end-of-tenancy services, offered by No Letting Go means landlords can make navigating the challenges of being an HMO landlord easier, ensure legal obligations are met, the investment is being protected and that tenants are content.
No Letting Go
If you would like to find out more about how the No Letting Go team can cut down on time needed to manage HMO and multiple properties, streamline cost and reduce workload, contact No Letting Go today.
Protecting tenants and properties from the risk of fire is an essential legal obligation for landlords. To ensure you are doing all required, here is our landlords’ guide to fire safety in rental properties.
What do landlords need to be aware of?
It is vital for landlords and letting agents to know what is expected of them regarding fire safety in their rental properties. Their obligations are set out in several regulations:
• The Housing Act 2004
• Furniture and Furnishings (Fire Safety) Regulations 1988/1989, 1993 and 2010
• The Regulatory Reform (Fire Safety) Order (2005)
• The Smoke and Carbon Monoxide Alarm (England) Regulations 2015, which has recently been amended to place further obligations on landlords
What is required from landlords?
The government has set out landlord safety responsibilities, stipulating what a landlord must do; these include:
· Following safety regulations
· Providing a smoke alarm on each storey and a carbon monoxide alarm in any room with a solid fuel burning appliance (for example, a coal fire or wood burning stove)
· Check you have access to escape routes at all times
· Make sure the furniture and furnishings supplied are fire safe
· Provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)
These responsibilities provide an overview of what needs to be achieved. Still, they don’t reflect all that needs to be done to ensure that a landlord’s requirements are met, that is, to do what is practically possible to ensure the safety of residents.
Landlords must understand the details set out in the various legislative documents and regulations as these add the detail, for example:
• Electrical safety inspections
• Portable appliance testing
• Gas safety checks
Properties that are houses in multiple occupation (HMOs) have additional fire safety rules such as marked fire exits and the provision of extra equipment, such as fire extinguishers. This highlights the importance of considering the property you own or intend to purchase and knowing the safety requirements.
Ongoing compliance: inventories and inspections
Essential tools for landlords to ensure they continue to meet the fire safety requirements are inspections and inventories. A legal requirement for many rental properties, they also benefit all landlords, who can keep track of the state of their investment.
At No Letting Go, we are always on top of the legal requirements placed on landlords. We can ensure they always stay compliant through comprehensive and regular inspections and completion of inventories.
Not only does this ensure that legal standards are met, but they also offer a piece of mind for both landlords and tenants that they are in a safe environment. We also make sure that landlords are prepared for any changes in legal requirements that may be heading their way regarding fire safety.
Services such as our block management inspections provide an independent assessment and record of fire safety at the property. Importantly, inspections can also be tailored to your property’s needs and provided at agreed intervals to keep on top of fire safety obligations.
No Letting Go
No one wants to take risks with fire safety. To discover how safety inspections can protect your tenants and your property or how our local support or national network at No Letting Go can streamline your costs and reduce workload, contact No Letting Go today.
The government recently announced the Fairer Private Rented Sector white paper, which it says is the biggest shake-up in 30 years in the rights and conditions for tenants in the sector.
Two areas likely to cause some of the biggest shake-ups for landlords are the ban on Section 21 “no-fault” evictions and the extension of the Decent Homes Standard to the private rental sector, which landlords need to be prepared for.
Why is the government introducing changes?
The rental sector has seen sustained and considerable growth, with 4.4 million households (equating to more than 11 million people) now living in rented accommodation. As part of its levelling-up plan, the government want to tackle the inequalities it sees between landlords and tenants and bring rented accommodation up to acceptable standards for all.
A ban on Section 21 no fault evictions
In 2018, Citizens Advice found tenants receiving a Section 21 eviction notice were five times more likely to have recently made a complaint to their council than those who hadn’t. The government wants tenants to feel able to draw attention to bad landlords or sub-standard accommodation and is introducing the ban so that landlords can no longer terminate tenancies without a specific reason.
The government also believes that this change will help reduce the financial burden tenants incur each time they have to move by ensuring they aren’t forced to do so unnecessarily. This is likely to have a significant impact as 22% of private renters who moved in 2019 and 2020 didn’t end their tenancy by choice.
To deliver these changes, Section 21 evictions will be abolished, and a single system of periodic tenancies will be introduced, replacing the current Assured Tenancy or Assured Shorthold Tenancy schemes. Under them, tenants will need to give two months’ notice to end their tenancy, and landlords can only evict in reasonable circumstances, which will be defined in law.
Extension of the Decent Home Standards
The government also wants to halve the number of ‘non-decent’ rented homes by 2030. The requirement for private sector rental properties to meet the Decent Homes Standard, already covering the public sector, is an integral part of achieving this.
To be considered decent, a property must be free from serious health and safety hazards, such as falls and carbon monoxide poisoning, must be kept in a good state of repair and have clean, appropriate and useable facilities. Decent noise insulation is also required. Homes that are too hot or cold, damp or mouldy, will not be acceptable.
With 1.6 million people living in low-quality homes, there is plenty of work to be done in this area. Landlords and letting agents must look carefully at the Decent Homes Standards and review their properties to ensure they meet and retain the required standards.
What do landlords need to do?
Many landlords already take their responsibilities to protect the wellbeing of their tenants seriously, but the changes outlined in the fairer private rented sector white paper mean systems need to be put in place to ensure properties are being maintained and that landlords have collected the information they need to support an eviction.
Services such as mid-term property reports and estate and block management will be vital tools for landlords and letting agents in helping them meet their obligations and prepare for the changes that need to start now.
Protecting yourself with No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, reducing your workload and costs by protecting you from unfair claims, then contact No Letting Go today.
The online letting agent market has changed significantly over recent years. Several well-known names have come and gone, while the sector’s popularity with landlords continues to grow — and the Renters’ Rights Act 2025, which came into force on 1 May 2026, has added a new layer of compliance requirements that makes choosing a reliable, well-informed agent more important than ever.
With the convenience and potential cost savings that online letting agencies offer, here — in our opinion — are some of the best online agencies currently operating.
What exactly is an Online Letting Agent?
Online letting agents work in a similar way to traditional agencies but without the physical high street presence. From advertising the property to photography and reference checking, most online agencies still deliver all the services required by landlords. They’re also often cheaper and come with fewer fees (though these do vary from agency to agency).
So, in alphabetical order, which are our recommended online letting agents? (Please note: All prices mentioned below are for the top/premium/fully managed packages; lower-cost alternatives for hands-on landlords are also offered by all agencies featured. Prices correct at time of publication — always check directly with the agent for the latest fees.)
I Am The Agent
Efficient, cost-effective and straightforward, I Am The Agent offers flexibility and simplicity to landlords. Their service allows you to choose what you want to receive as part of the package.
Price: Check their website for current package pricing.
Letting a property.com
LettingaProperty offer all the services you’d expect of a high street agency but more affordably, and with a self-proclaimed ‘higher service level’. In their ‘Complete’ plan, the agency offers a guarantee that the landlord receives rent on time every month (even if the tenant doesn’t pay) as well as home emergency maintenance cover.
Price: Check their website for current package pricing.
Make Ur Move
Make Ur Move offers a variety of lettings services, ‘from DIY to VIP’. You can easily upgrade your package at any time to complement the level of service you require as a landlord. Their modular approach lets you choose from tenant-find, rent collection, or fully managed options, with Rightmove, Zoopla, and OnTheMarket advertising included.
Price: Check their website for current package pricing.
Mirus
Mirus utilises the skills and expertise of their consultants to offer an ‘unrivalled professional experience’. With a real emphasis on instilling trust and confidence in landlords, this service is driven by a highly experienced team.
Price: Full management fees are 8.4%. Letting only fee is 30% of monthly rental.
Pad
Pad is a fully mobile lettings agent — their tenants verify, offer, sign and pay with the click of a button. They claim to be the lowest cost lettings service and pride themselves on their tech and logistics. They currently operate in London.
Price: Check their website for current package pricing.
Purple Bricks
Now operating under new ownership following its acquisition by Strike, Purplebricks remains one of the best-known names in the online agency space. Their lettings service is currently focused on London and select cities. Fees can be calculated using their online calculator.
Price: Fees can be calculated using their online calculator.
Rentlord
Rentlord is an online platform designed for self-managing landlords, allowing them to manage their portfolio entirely online and making the admin and legal workload significantly easier.
Price: Check their website for current package pricing.
Rent My Home
Rent My Home looks to create a speedy and effective letting process for landlords, with a large emphasis on transparency and a clear, honest package structure.
Price: Dependant on package inclusions.
The Online Letting Agent
The Online Letting Agents work differently from many other online agents. Before sending a lead to a landlord, they gather further information from prospective viewers to ensure they’ll be a suitable tenant — saving landlords time and effort. They also regularly review listings to ensure they’re performing at their best. Currently the highest rated online letting agent on Trustpilot across property, property leasing agent, property rental agent and estate agent categories.
Following the Renters’ Rights Act coming into force in May 2026 — which introduced significant additional compliance requirements — The Online Letting Agent updated their fee structure accordingly.
Price: Tenant find from £99. Part Managed: £199 setup fee, 4.5% pcm (min £55/max £75 pcm). Fully Managed: £199 setup fee, 6.5% pcm (min £75/max £110 pcm). All prices inclusive of VAT.
Visum
Operating since 2004, Visum is one of the UK’s longest-established online letting and estate agents. With a track record spanning tens of thousands of properties, Visum prides itself on its rich industry experience, having been conceived by genuine landlords and estate agents.
Price: Check their website for current package pricing.
No Letting Go – a partner you can rely on
New rules for smoke and carbon monoxide compliance are expected to take effect from 1st October. In our blog, we have previously discussed whether the new carbon monoxide (CO) alarm regulations will have an impact on the buy-to-rent sector. With these proposed changes just around the corner, now is the time to ensure that you will comply with the law.
What do the new CO rules require from landlords?
Landlords and letting agents should already be aware of the obligations placed on them regarding carbon monoxide alarms and smoke detectors.
But from the beginning of October, the Smoke and Carbon Monoxide Alarm (Amendment) regulations will create new obligations that must be complied with:
• Landlords will be responsible for repairing and replacing alarms throughout the tenancy, not just at the start. They can no longer rely on the tenant to repair or replace the smoke alarm or CO detector, and they need to ensure that they act once they have been informed of a fault by the tenant.
• Any room in the property with a fixed combustion appliance, including gas fires, boilers and wood burners (excluding gas cookers), must have a carbon monoxide alarm.
• Landlords must check alarms are in working order on the first day of a tenancy.
• Carbon monoxide alarms will also be mandatory upon installation of any heating appliance (excluding gas cookers).
• The social housing sector will now also be required to fit homes with fire alarms and carbon monoxide sensors.
To ensure compliance with the new regulations, landlords and letting agents will need to have all required alarms and detectors fitted by 1st October when the new regulations come into effect. It will not be enough to have them ready to install.
Now is the time to prepare for the changes
Now is the time to begin the process of making sure each of your properties will be compliant by the deadline. This means not only checking that smoke alarms and carbon monoxide detectors are working and installed as required but that you also have the right processes in place to ensure ongoing compliance.
Equally importantly, you also need the ability to demonstrate that you are fulfilling your duties.
For those responsible for block or estate management, the task of ensuring and maintaining compliance can be time consuming and complex. We have many clients who rely on our Estate and Block Property Management Services to ensure that they are meeting the range of responsibilities placed on them.
We can conduct weekly, monthly and six-monthly property visits, and our inspections include checks on a range of assets, including:
• Fire detection and fire alarm system
• Fire doors
• Emergency lighting
• Sprinklers
• Fire extinguisher
• Automatic doors
For anyone managing individual properties, our check-in services and mid tenancy services can support you and ensure changes in legislation never catch you out.
If you need support to get ready for The Smoke and Carbon Monoxide Alarm (Amendment) regulations 2022, please contact us to discuss how we can help you.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, supporting compliance, streamlining costs and reducing your workload, then contact No Letting Go today.
The foundation of a good relationship between a tenant, landlord and letting agent is when parties understand their rights and responsibilities to each other, establishing a collective responsibility to ensure the tenancy goes smoothly.
If you’re new to renting or haven’t reminded yourself of your rights and responsibilities as a tenant, look at our guide below to know where you stand.
Your rights as a tenant
As a tenant, you have the rights provided for in Government legislation and may also have additional rights defined in your tenancy agreement with the landlord. The rights set by the government are the minimum:
· To live in a property that’s safe and in a good state of repair
· Your deposit is returned when the tenancy ends, providing no damage has occurred to the property – and your deposit is protected if you rent your home on an assured shorthold tenancy that started after 6 April 2007
· The right to challenge any charges you believe to be excessively high
· To know who your landlord is
· To live undisturbed in the property
· The right to see an Energy Performance Certificate for the property
· Protection from unfair eviction and unfair rent
· To have a written agreement if you have a fixed-term tenancy of more than three years
In addition to these rights, if you live in England, when you begin a new assured or short tenancy your landlord is obliged to give you a copy of the How to Rent guide, offering advice on the rights and responsibilities of both tenants and landlords and the rental process in England and Wales.
Your responsibilities as a tenant
In addition to your rights, you also have responsibilities as a tenant, which you must be aware of to ensure you aren’t risking your tenancy. These responsibilities are:
• To take good care of the property, for example, turn off the water at the mains if you’re away in cold weather.
• Pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord.
• Pay other charges as agreed with the landlord, for example, Council Tax or utility bills.
• Repair or pay for any damage caused by you, your family or friends
• Only sublet a property if the tenancy agreement or your landlord allows it.
• Allow the landlord access to the property to carry out repairs if they have given you at least 24 hours’ notice, and they request access at a reasonable time of day unless it’s an emergency and they need immediate access.
If you don’t meet your responsibilities, your landlord has the right to begin legal action to evict you.
Building a positive tenancy
The rental sector is a dynamic one that’s subject to regular changes in the law, such as those proposed by the Renters Reform Bill or the proposed EPC regulations, so there’s a lot for landlords, letting agents and tenants keep aware of.
Good communications and putting processes in place, such as mid-term property reports, ensure that the property is well maintained and all stakeholders know their expectations and can work together to create a positive tenancy relationship – which saves time and money for all concerned.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, contributing towards a smooth relationship with tenants, streamlining costs and reducing your workload, then contact No Letting Go today.
Landlords are raising rents in response to tax changes
It’s been two years since changes to buy-to-let mortgages also changed the way that landlords are taxed. As some had predicted, many landlords have been forced to reconsider their position and think about what the future now holds for them.
How has buy-to-let tax changed?
Before 2017, landlords could deduct mortgage expenses from their taxable profits, including all of the interest they paid for the mortgage on their rental property.
In 2017 this began to be phased out until April 2020. it stopped altogether. This was replaced by a 20% tax credit, which is substantially less for higher rate taxpayers who, under the old system, would have received 40% tax relief.
How has this affected landlords?
These changes in how landlords are taxed have had significant implications for them, with one in three reporting that their portfolio is not as profitable as it was before the changes came in. The same number of landlords have considered selling properties due to the loss of mortgage tax relief.
Apart from the financial impact, the lettings sector is undergoing a raft of changes, with more on the horizon; we recently talked about how the Renters Reform Bill will change things. All these changes and proposals are proving challenging to keep up with, causing 58% of landlords to claim that changing and confusing government legislation is the biggest challenge.
Two options for landlords
In addition to changing legislation, 32% of landlords stated that rising taxes are also a key challenge. To manage the financial impact of these changes, landlords are taking one of two main options – raising rents and selling properties.
25% of landlords said they have increased rents to cover the cost of increasing tax on their tenants, and for landlords with more than 20 properties, this increases to 58% passing on costs.
Around the same proportion of landlords with more extensive portfolios (26%) have reduced the size of their properties to reduce the impact of tax changes. However, the percentage decreases to 13% for landlords with smaller property portfolios.
What does the future hold for landlords?
With more changes to the law on the drawing board that will impact landlords, for example, renting with pets, changes to energy efficiency rating requirements, as well as possible interest rate rises, life for landlords won’t get any easier in 2022.
Ongoing changes and uncertainty in the rental market will continue to have unintended knock-on effects, such as reducing the amount of affordable housing and rental properties on the market.
Despite the challenges, almost 60% of landlords still believe that letting a property is worthwhile. Demand for rental properties is still high, so there is still much for landlords to be optimistic about, so long as they have a realistic business plan, which includes the right support that keeps costs down and maximises occupancy.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your costs and reduce your workload, then contact No Letting Go today.
Understanding the numerous taxes that apply to landlords and then calculating the amount of tax owed can be complex. To ensure that you meet all your obligations, keeping up to date with tax changes that may affect your income is essential.
In 2022, we’ve already seen buy-to-let tax changes coming into full effect, so what else should landlords be aware of?
Changes to tax
Some changes in UK tax regulations may impact landlords:
Tax on dividends – There is currently a £2,000 annual dividend allowance, but tax must be paid on income from a dividend after this allowance. From April 2022 tax on dividends increased by 1.25%. This means if you pay the basic tax rate, you will now pay 8.75% tax on dividend payments, those paying a higher rate of tax will pay 33.75%, and additional rate taxpayers will pay 39.35% on dividends.
National Insurance – National Insurance contributions have increased by 1.25%. Landlords renting properties as a business venture will see an increase in the NI contribution they must pay on any rental earnings if they exceed the relevant thresholds. It also means that if they employ people in their property business, employer contributions to NI will also increase.
Capital Gains Tax – The timeline for reporting and paying Capital Gains Tax made on profits from selling a buy-to-let property has increased from 30 days to 60 days.
Make Tax Digital – From April 2022, any landlord with a VAT-registered property rental business with a rental turnover below the VAT threshold of £85,000 must now keep digital tax records and report income and expenses figures online to HMRC each quarter as part of the Making Tax Digital initiative.
From 2024 this requirement will be extended to include self-employed landlords completing self-assessments. They will be required to maintain digital financial records compatible with HMRC’s Making Tax Digital system.
More changes on the horizon – 2022 is shaping to be an economically challenging year, with the possibility of higher inflation and recession affecting landlords’ finances.
Inflation, already at a 40-year high, is set to increase. In addition, rising interest rates are likely to continue their upward trend throughout 2022. Any rise in interest rates may concern landlords; if a mortgage is due to be renewed, it may be time to shop around for the best deal.
In addition to financial changes, The Renters Reform Bill will continue to go through the stages of parliamentary approval. Changes, such as proposed energy ratings certificate, carbon monoxide alarm regulations and “Lets with Pets”, mean landlords should be prepared for more changes in regulation and the extra costs they imply.
Preparing for an uncertain future
Making sure you are on top of your existing landlord’s obligations will make adjusting to whatever lies ahead easier because you won’t be in a position where you are already trying to catch up with reforms. Implementing a thorough inventory process is one important step to help you achieve this, providing you with a solid benchmark and clarity in an ever-changing sector.
The right business partner can also help you reduce running costs and ensure optimal occupancy for your properties.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, streamlining costs, reducing your workload and boosting efficiency, then contact No Letting Go today.