Richard Butler Creagh - New Rental Rules for Property Investors

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This year they have set regulatory changes at property investors. The government believes they are creating a good playing field between homeowners and landlords by putting up taxes and hiking up legislative loads on property investors. This move can have large detrimental effects on the supply of rental housings in the UK. Richard Butler Creagh and other property investors are widely aware that property still offers significantly higher returns than other investment choices which means many are still nurturing their portfolios while others can join the property market for the first time.

If you are a property investor, here are two major upcoming rental rules that you must prepare for:


Letting agent fee ban

 The “Tenants’ Fees Bill” is expected to be laid out before the end of this year, explaining which fees will not be allowed. It is widely known by many in the industry that landlords may instead incur these fees, as letting agents look at some other ways to make their money. Landlords may now discard their letting agents together and decide to manage their properties alone. While this works for some of those who can manage their lettings business full-time, others may not have sufficient time to comply with their duties as a landlord. But it will be the tenants that will bear the brunt of this changes in one way or the other despite it being enforced to protect them from higher rates.

Tenancy deposit cap

Most of the property investors and landlords take deposits from tenants at the start of a tenancy. This is to cover any costs for loss and damage to the property while the tenants are living in their properties. In another attempt to prevent tenants from incurring large expenses when they move to rental properties, the government has proposed a cap on security deposits. Having this law means that landlords will only be able to take up one month rent as a security deposit from the tenants when they move in. This may seem good news to tenants but it can result in many finding it more difficult to find a suitable rental property. A good example is landlords often require a more expensive deposit from risky tenants like those with pets and families with children. If they are not allowed to do this, they may decide to not let those tenants rent their properties at all.

Being aware of these incoming changes to rental rules is important for property investors in today’s market. A good property investor must understand the changes identified above and put certain measures in place to start preparing them sooner to avoid being caught. If you need a loan to purchase a buy-to-let property, contact Henley Finance. Visit the official website of Richard Butler Creagh here. Follow the Richard Butler Creagh Twitter page for the latest news on bridging finance and watch this video to find out more.

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