From 8 July 2020, anyone purchasing a property will find that the threshold for paying stamp duty has increased to apply to properties of £500,000 or more, instead of £125,000 (or £300,000 for first-time buyers).
Prospective purchasers won’t need to pay stamp duty on properties they purchase that fall below this new threshold, as long as the property completes before 31 March 2021. The government estimates that “nearly nine out of ten people buying a main home this year will pay no stamp duty at all.”
Landlords purchasing a buy-to-let property in England and Northern Ireland would still pay an extra 3% of stamp duty on top of the rates paid by those purchasing their own home. The potential large cost saving from the stamp duty cut may prove tempting for landlords considering entering the rental market, or expanding their portfolio – an influx at just the right time to meet the current strong demand in the rental market.
The laws around electrical safety in the rental sector have recently changed, as of 1st July 2020 it has become a legal requirement for all rental properties to have an Electrical Inspection Condition Reports (EICR) in place, and for it to be renewed at least every 5 years.
The requirements apply to all rental properties, including HMOs. Existing tenancies need to have acquired an EICR by 1st April 2021 and for new tenancies, landlords must provide a copy of the most recent EICR before the tenancies are signed.
In the instance of an EICR report identifying a fault, the landlord must instigate a further investigation or carry out any repairs within 28 days of the initial inspection. Failure to comply with these new regulations can result in significant financial penalties of up to £30,000.
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We are delighted to launch our new website and welcome to all that use it. We hope you find it useful. Nick and Sophie have over 40 years of combined local knowledge and experience and are very much looking forward to assisting you whether you are looking to buy, sell, let or rent.
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