From the tenant fee ban to the client’s money protection plan, new standards in space and electricity, 2019 is a bit confusing to be a homeowner or real estate agent, to bring in some more recent arrangements and programs.
For many of these changes, which are likely to have a significant impact on the behavior of representatives and property owners, as you feel completely overwhelmed by them. So, what are the basic rules and regulations for this year, and what is planned for 2020 and later?
1) Prohibition of Tenant Fees
The Tenant Fees Act, which will come into force on 1 June 2019, aims to ensure that tenants can see at a glance what a certain property will cost them without paying any price for the rented property.
The new rules also mean that the deposits will be paid for a five-week lease (or six for tenancy of more than £ 50,000 a year) and that proxies and landlords will be prohibited to pay for anything other than a contract change, council and public services, tax, changes in the tenancy and issues with which the tenant is wrong.
The tenant has been determined in such a way as to affect both landowners and agencies, who cannot transfer the cost of activities such as the ban on fees, inventories, tenant references and credit controls to the tenants. This is a problem, because all of these processes involve time, people, and systems and therefore create a cost.
While many agents will not be able to cover these costs, and therefore tenants have to pay much less on prepayments, the overturning effect of the invoice will almost certainly lead to increases in rents to compensate for losses.
2) Houses (Human Life Eligibility) Act
This procedure, which came into force on March 20, requires landowners to ensure that their properties are suitable for any non-hazardous and human settlements, and that the properties that violate the updated legislation should be responsible for tenants’ court proceedings. The Law amends the existing legislation and the Tenant Law of 1985 by extending the obligations in this legislation.
The law is designed to ensure that tenants conduct legal action if their property is found to be in violation of the rules and to improve property conditions in both the private and social sectors.
There are warnings that the legislation could only encourage some tenants to initiate legal action to earn compensation, and the Homeowner’s Home Owners Association expressed concern over the dangerous cases filed against homeowners.
However, agents and hosts offer many ways to correct phone and email communication, such as limiting. With the 2014 Law on Anti-Social Behavior, Crime and Police Act, agents and homeowners can also rely on the ası hostage distress Polis background, which can help to overcome harmful complaints.
3) Customer Money Protection program
Under a new law, which came into force on 1 April 2019, private sector representatives will be required to participate in a government-approved Customer Money Protection (CMP) program or a fine of £ 30,000.
The new law will ensure the protection of the client’s funds, including rent payments from tenants and the payment of tenants. This should provide assurance to people in the industry that their money is safe with their agents.
Agents will need to meet a set of standards to participate in a CMP, such as having a separate customer bank account and having professional compensation insurance. However, most delegates should already be able to access a CMP program with their membership in agency bodies such as ARLA, RICS, NALS or UKALA.
4) HMO license extensions
Last October, the amendments to the law mean that thousands of proprietors, who allow shared properties, will now be granted the Rule of Multiple-Occupational Home (HMO) licenses.
Where a property is classified as HMO only if it is rented to five or more persons in a household with shared facilities; and at least three times higher.
However, these rules have changed recently, and this number of households – regardless of the number of floors – requires an HMO license.
5) Minimum space standards
Since October of last year, we have new requirements for the minimum bedroom size. Regulations depend on how many people occupy the bedroom.
Failure to follow these rules will put an 18-month timer on the landlord to remedy the problem; those who are liable to pay a fine of up to £ 30,000 to solve the problem.
6) Mortgage interest tax reduction
According to the former rules, you can reduce your mortgage interest (including other related costs, including regulatory fees) before you can determine your taxable profit. However, according to the new rules, this rate cut will be cut in a gradual process, which ends April 2020.
From this date on, if the property belongs to an individual, it will no longer be possible to reduce the mortgage interest costs from taxable profits.
Things to change after 2019:
1) Leased controls in London
The lease control proposal began in 2017 with the Labor’s general election manifesto.
Although not yet approved, the mayor of London, Sadık Han, has made a central policy in the 2020 bid, and has committed to developing a Sad plan to fix or control private rents in the capital Henüz.
2) Minimum energy efficiency standards
The minimum E threshold on an EPC certificate was put into effect on April 1st last year and applies to all new permits and renewals. The rules will be extended to all tenancies starting from April 1, 2020, and all existing tenancies need to be brought to this new standard by the end of 2020.
3) Complaint Resolution Service
In January, the government announced a new housing complaint service for the entire market.
Currently, there are several different complaints bodies, which can cause a contractor or other people to complain to the landlord.
For homeowners and tenants, to private owners and developers, this new service is designed to provide a simple way for everyone to get help with unresolved disputes.
4) Electrical installation controls
The date of implementation is not yet known, but it appears that the government is committed to providing mandatory five-year mandatory electrical installation checks for private rental homes in the UK.
From what has been described so far, this is likely to occur gradually, and real estate agents and landowners need to take at least six months to recognize the new laws before they come into force.
Melike Vodina / realesatecoulisse.com