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On Monday 23rd January, the Fire Safety (England) Regulations 2022 will come into force.
Most of the rules cover high rise buildings, however regulations 9 & 10 will cover all buildings which contain two or more sets of domestic premises & all buildings
which contain common parts through which residents would need to evacuate in the case of an emergency. Therefore, in addition to buildings containing self-contained flats, these rules will also apply to properties with rooms let on individual tenancies in a shared house – i.e. HMOs.
If a property comprises of two maisonettes with front doors on the street and no communal area, these regulations will not apply.
Responsible persons will have to follow two key requirements –
All information from gov.uk.
These Regulations apply to all buildings in England that comprise two or more domestic premises (including the residential parts of mixed-use buildings) although there are more requirements depending on the height as explained in this guide. These buildings are, principally, blocks of flats (whether purpose-built or converted from another type of building, such as a house or office building), but also include blocks used for student accommodation.
The Regulations apply regardless of whether the flats are subject to a long (e.g. 99 years) lease or are rented, and regardless of whether the flats are used to accommodate the general public or a particular group of people (as in the case of, for example, sheltered housing for older people).
The Fire Safety (England) Regulations impose duties on you if you are the Responsible Person for any building which:
The Regulations apply to:
The Regulations do not apply within individual flats, other than in respect of measures installed within flats for the safety of other residents of the building (e.g. sprinklers, smoke detectors connected to a communal fire alarm system, etc).
Enforcement of the Regulations is the responsibility of the same enforcing authority as enforces the Regulatory Reform (Fire Safety) Order 2005. In the case of a block of flats, this is virtually always the local fire and rescue authority.
The sections that follow begin with requirements that apply to all residential buildings. There then follow requirements that apply only to buildings of greater than 11m in height. Finally, the guidance sets out requirements that apply only to high-rise residential buildings. The section headings make it clear whether the section applies to all residential buildings, only to buildings of greater than 11m in height, or only to high-rise residential buildings.
Because Grenfell Tower was a high-rise block, much of the focus of the recommendations of the Public Inquiry was concerned with measures to ensure the safety of residents in high-rise blocks of flats. However, the Government is determined to ensure that residents of all residential buildings are as safe as possible from fire and that they feel safe from fire.
For the purpose of the Regulations, a residential building is to be considered as high-rise if either of the following circumstances apply:
A mezzanine floor is to be treated as a storey if its floor area is at least 50% of the floor area of the largest storey in the building which is not below ground level.
It is the Fire Safety Order that defines the meaning of Responsible Person in the context of both the Order and the Fire Safety (England) Regulations.
As the term “Responsible Person” has a legal definition, it is not open to building owners, enforcing authorities or others to choose to “make” someone the Responsible Person, nor can the responsibility for compliance with either the Fire Safety Order or the Fire Safety (England) Regulations be delegated to others (though the Responsible Person will normally need to engage other parties, such as contractors, to assist them in compliance).
Under certain circumstances, duties can also fall on individuals other than the Responsible Person if any of the requirements of the Fire Safety Order relate to matters within their control. In such circumstances, the Responsible Person will still also retain their duties under the Fire Safety Order.
For all practical purposes, in the case of a block of flats, the Responsible Person will be the person who has control of the premises in connection with carrying on a business. This will, typically, be the freeholder or the managing agents for the block, or, for example, a residents’ management company.
If any part of the building is a workplace, the employer of persons employed to work in that workplace will be a Responsible Person. This can occur if, for example, a concierge is employed or parts of the building are used for commercial purposes.
So, there may be circumstances in which there is more than one Responsible Person within the same building. However, even in these circumstances, overall control of the building most commonly rests with the freeholder, managing agents or a residents’ management company.
Sometimes, confusion arises from the term “Person”, because it might be expected that the “Responsible Person” is an individual living person (or what, in law, is described as a “natural person”). However, commonly, the Responsible Person will be an organisation, such as a property company or firm of managing agents (or what, in law, is described as a “legal person”).
If you are unclear as to whether you are the Responsible Person for the purpose of the Fire Safety (England) Regulations, or otherwise are unsure as to the correct identity of the Responsible Person, you should seek legal advice. It is not the role of, for example, the fire and rescue service to advise you in this respect, though, in enforcing the Regulations, the fire and rescue service may require to be informed as to the identity of the Responsible Person.
You must display fire safety instructions in a conspicuous part of the building. The instructions must be in a comprehensible form that residents can reasonably be expected to understand.
The instructions must cover the following matters:
These instructions must also be provided directly to new residents as soon as reasonably practicable after they move into their accommodation, as should also be the case if there are any material changes to the instructions (e.g. as a result of alterations to the building). In addition, these instructions should be reissued to all existing residents at periods not exceeding 12 months.
You must also provide relevant information about fire doors, particularly residents’ flat entrance doors, as these play an important part in containing any fire within the flat in which it starts. In particular, you must provide information to all residents to the effect that:
Again, the information about fire doors must be provided to residents as soon as reasonably practicable after they move into their flat and at periods not exceeding 12 months thereafter.
SWLA recommend that landlords provide the information to tenants at the start of each tenancy. For existing tenants – provide the information as soon as possible and document that you have done so.
For more information please see the gov.uk guidance;
Read the regulations here;
Since first being introduced in 2013, Universal Credit (UC) has streamlined and simplified the benefits system to better support those in work on low incomes, as well as those who are unemployed or who cannot work.
Claimants who are on the old style (legacy) benefit payments system are currently being migrated over to UC payments.
This will happen with a three-track approach – natural migration, voluntary migration (“choose to move”) and managed migration.
As has been the case since the start of UC rollout, when a legacy claimant experiences a change in circumstances (for example, a change in employment status or family situation), they need to make a new claim for a benefit that UC has replaced and they will “naturally” migrate to UC.
Legacy claimants can choose themselves to voluntarily move across to UC.
For those claimants who do not choose to migrate voluntarily nor have migrated naturally, DWP will need to manage their migration to UC.
Underpinning managed migration is the DWPs commitment to transitional financial protection to ensure that eligible households who are moved to UC do not have a lower award on UC at the point they move if their UC entitlement is lower than their entitlement on legacy benefits.
DWP recognise that claimants’ confidence, experience and trust in the benefit system will vary. That is why the managed migration track will also be underpinned by a customer-focused approach with effective processes and systems to move people across safely.
There are several key tasks to focus on to start managed migration:
i. gathering data on the different circumstances of legacy benefits’ claimants;
ii. designing the processes and tools to calculate both UC entitlement and transitional protection (where applicable), then paying the correct award;
iii. assessing and providing the different levels of support required to make a successful claim;
iv. considering how best to notify claimants about their move; and,
v. understanding the different challenges claimants may face after making their claim to UC and the support they need.
Work to design the managed migration process resumed this January. DWP will soon start moving small numbers of legacy claimants on to UC, with a focus on refining the processes and systems for doing so to support our claimants as effectively as possible.
Optimising support for claimants in moving to UC will be a critical part of the managed migration process. The department will work closely with stakeholder groups throughout this work to monitor and understand what support is required and what works bests for claimants. We expect all claimants to migrate to UC by 2024.
If tenants have any questions or queries about this subject, they can contact the Job Centre Plus who have walk in and appointment based services to support benefit claimants.
For further information see; Completing the move to Universal Credit – GOV.UK (www.gov.uk)
The reduction in landlords’ Capital Gains Allowance has triggered a sell-off by landlords at a 13-year high according to new figures.
Last month Chancellor Jeremy Hunt announced that the amount you can make from the sale of certain assets before paying tax will fall from £12,300 to £6,000 in April 2023 and then to a mere £3,000 in April 2024.
Tom Cranenburgh from the GetAnOffer Estate Agency says this has sounded the alarm for many landlords.
“The changes to Capital Gains Allowance couldn’t really have come at a worse time for landlords. Right now many are already facing a reduction in property values, rafts of new regulation and the prospect of many of their tenants struggling to pay their rent due to the cost of living crisis.
“That’s why many are reacting to this unwelcome blow by already opting to quit the market and sell up.”
Cranenburgh continues: “We track all enquiries really carefully, and landlords looking to sell are coming to us more than I can remember since we began back in 2009. Some are hoping to sell with tenants remaining, others have given two months notice and want the place sold as soon as it’s empty to avoid paying all the costs with no rent coming in.
“Landlords looking to sell are up nearly 65 per cent in November versus October and nearly 300 per cent versus November 2021.”
Basic rate taxpayers pay 10 per cent CGT on most asset sales and 18 per cent on property. Higher rate taxpayers pay 20 per cent CGT on most assets and 28 per cent on property.
A landlord paying higher-rate tax would pay up to £1,764 more tax on a property gain above the threshold if they sold between April 2023 and April 2024 (when the threshold is £6,000), and up to £2,604 more after the threshold drops to £3,000, according to the investment platform AJ Bell.
A landlord paying basic-rate tax would pay up to £1,134 more in CGT if they sold their property between April 2023 and April 2024, and up to £1,674 extra from April 2024.
Landlords who manage their buy to let portfolio through a limited company and pay themselves in dividends will also be hit by changes to the dividend allowance, which is the amount that an individual can receive in dividends before paying tax on them. That allowance will be cut from £2,000 a year to £1,000 in April, and then halved again to £500 in April 2024.
In the autumn the number of limited companies set up to hold buy to let properties passed 300,000 for the first time as more landlords moved properties from personal to company names.
Article from Landlord Today
In a high profile speech at Stratford, Sunak said he would focus “relentlessly” on five issues.
He said: “I want to make five promises to you today. Five pledges to deliver peace of mind. Five foundations, on which to build a better future for our children and grandchildren.
“First, we will halve inflation this year to ease the cost of living and give people financial security. Second, we will grow the economy, creating better-paid jobs and opportunity right across the country.
“Third, we will make sure our national debt is falling so that we can secure the future of public services. Fourth, NHS waiting lists will fall and people will get the care they need more quickly.
“Fifth, we will pass new laws to stop small boats, making sure that if you come to this country illegally, you are detained and swiftly removed.
“So, five promises – we will: Halve inflation, grow the economy, reduce debt, cut waiting lists, and stop the boats. Those are the people’s priorities. They are your government’s priorities. And we will either have achieved them or not.
Sunak promised to work “night and day” to deliver on the five challenges during this parliament and to create “a future that restores optimism, hope and pride in Britain”.
His speech was wide ranging covering educational aspirations, innovation, hard work, social care and a range of other issues – but there was no mention of housing in general and no specific mention of rental reform.
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Former Conservative Prime Minister Theresa May first proposed rental reforms, including specially the scrapping of Section 21 eviction powers, back in spring 2019.
Just two weeks ago, shortly before Christmas, the current Housing Secretary – Michael Gove – said: “We’re going to be bringing forward more legislation to improve the position of people in the private rented sector. We want to make sure that people in the private rented sector are confident that local government is on their side. We will bring forward legislation that will give them better protection. It will come in the next calendar year, so 2023.”
The details of the Renters Reform Bill, contained in a parallel White Paper, were released back in June but the government – at that time led by Boris Johnson – did not set out a timetable for implementation.
The measures included a ban on Section 21 evictions and the extension of the Decent Homes Standard to the private rental sector. It also pledged an end to what it calls “arbitrary rent review clauses, give tenants stronger powers to challenge poor practice, unjustified rent increases and enable them to be repaid rent for non-decent homes.”
Article from Landlord Today
Buyer demand levels declined in the fourth quarter of 2022 as economic pressures and the increased cost of borrowing continue to force many people to re-evaluate their home-buying aspirations, according to newly released data from GetAgent.
GetAgent’s Hotspots Demand Index monitors homebuyer demand across England on a quarterly basis. Current demand is based on the proportion of stock listed as already sold (sold subject to contract or under offer) as a percentage of all stock listed for sale. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.
The latest index shows that across England, buyer demand is currently at 48.3% which marks a -9.2% decline since Q3 2022 and -17.3% decline since this time last year, suggesting that the pandemic-inspired property boom is being brought well and truly back down to earth by the significant economic pressures facing the nation’s would-be homebuyers.
England’s strongest sales demand hotspot is currently Durham where it sits at 68%. This is -5.6% lower than Q3 of this year, but -14.6% lower than this time last year.
The city of Bristol, which ranked as the number one sales demand hotspot last quarter, now ranks second with 56.6% while Surrey (56.4%), Greater London (55.9%), and the City of London (54.8%) all maintain good levels of demand despite all experiencing quarterly and yearly declines.
In terms of annual change, the worst-hit places are the Isle of Wight (-25.5%), East Riding(-25.5%), and Derbyshire (-24.8%).
The worst-hit places in the last quarter are East Riding (-12.9%), Bedfordshire (-12.8%), and Staffordshire (-12.7%).
In the search for good news, optimism is hard to come by. No parts of England have experienced sales demand growth in the past year or the past quarter.
The smallest annual declines have been reported in Lincolnshire (-4.7%), Leicestershire (-8.0%), and Suffolk (-9.8%), while the smallest quarterly declines are in Suffolk (-3.6%), Durham (-5.6%), and Wiltshire (-5.9%).
Colby Short, Co-founder and CEO of GetAgent.co.uk, commented: “After a couple of years of manic demand, activity, and price increases, we end 2022 with a gentle bump back down to earth. Economic gravity was always destined to enforce the declines we’re currently seeing and, in many ways, it’s a surprise that it’s taken this long to happen.
“You’re going to read all sorts of pessimistic property headlines over the coming months, but the forecast isn’t actually that bleak. Look at the long-term history of house prices and you’ll see that the property market is never down for long, regardless of how many pandemics and economic crashes are thrown it’s way.
“However, the fortunes of the housing market are very much in the hands of the Bank of England at the moment because, until interest rates come down and borrowing becomes more affordable, lenders are going to be tighter with their mortgage offers and buyers are going to be nervous about taking on these relatively high levels of risk.”
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Tenants struggling with the rising cost of living and surging energy prices are choosing to stay put rather than move to a new property and risking a rise in rental costs under a new contract, according to research from estate and lettings agent, Barrows and Forrester.
The firm has revealed that tenant demand has started to fall across England’s rental market, with demand down by as much as -29% in some parts of the country.
The Barrows and Forrester Rental Demand Index monitors rental listings across the nation, taking an average demand score for each English county based on the number of properties already let as a percentage of all rental listings, highlighting where demand for rental homes is at its highest.
Rental demand across England is currently sitting at 33.9% after a quarterly drop of -12% between Q3 and Q4 of last year.
With a decline of -28.9%, the City of Bristol has reported the most significant rental demand drop, followed by Nottinghamshire (-21.5%), the City of London (-20%), West Yorkshire (-18.7%), and Greater Manchester (-18.5%).
Some parts of England have, however, experienced demand growth in the past quarter, none more so than Durham where it has increased by 12%.
Demand on the Isle of Wight has increased by 3.5%, and it’s a 1.9% boost for both Shropshire and Essex. These are the only parts of the country to report an increase in rental demand.
England’s current rental demand hotspot is West Sussex where demand for rental properties sits at 56.1%. This is followed by Bedfordshire (54.4%), Essex (54%), Bath & North East Somerset (51.5%), and Dorset (51.5%).
Meanwhile, demand is at its lowest in the West Midlands (19%), Leicestershire (20.8%), and West Yorkshire (21.3%).
James Forrester, Managing Director of Barrows and Forrester, commented: “Rental demand is down across all but four areas of England and the rising cost of living and surging energy prices will be playing a significant part in this decline.
“Tenants are fully aware that landlords are seeing their own expenses rise, not least mortgage payments, and are passing these increasing costs to their tenants. As such, renters are choosing to stay put at the moment with tenancy agreements that were signed before the current economic crisis instead of exposing themselves to a market where prices are likely to get higher and higher.
“As the cost of living crisis eases, whenever that might be, rental demand will certainly increase. But for now, tenants are staying put.”
Article from Property Reporter
Article by GoSimpleTax
You may be wishing that you had completed and filed your 2021/22 Self Assessment tax return weeks if not months ago.
But January has arrived and for whatever reason, you didn’t get it done. It’s a busy life and who enjoys doing tax returns? But don’t worry – you’re not alone. Each year, about four million people put off filing their Self Assessment tax return until after Christmas, despite the impending midnight 31 January online-filing deadline.
So, if you’re a busy landlord with other things to do and little time to spare, how do you get your 2021/22 Self Assessment tax return off your plate as quickly as possible with minimum fuss?
Are you registered for Self Assessment?
You must report your rental income via a Self Assessment tax return if it’s more than £2,500 after “allowable expenses” (more on these below) or £10,000 or more before allowable expenses have been deducted. To pay Income Tax on your rental income, if you didn’t file a tax return in the previous tax year, landlords must register for Self Assessment. It’s quick, easy and free!
Need to know! You must register for Self Assessment by 5 October latest in your second tax year (UK tax years run from 6 April to 5 April). If you haven’t done so by now, sorry, you’ll probably have to pay a fine.
Decide how to file your landlord Self Assessment tax return online
There are three options. You can…
How long will it take to fill out your landlord Self Assessment tax return?
The SA100 Self Assessment tax return and landlord supplementary pages
Within the Self Assessment tax return (the “SA100”, which is eight pages long), you provide details of taxable income and any capital gains, as well as (if applicable) student loan repayments, taxable bank or building society interest, pension payments/annuities, donations to charity and tax reliefs and allowances that you wish to claim.
As a UK landlord, you complete the main Self Assessment tax return (the SA100) as well as a supplementary page (SA105), summarising your taxable rental income and any associated costs you wish to claim.
If you earn taxable income from other sources, you’ll need to complete and file other supplementary pages, for example, the SA103 if you also earn taxable income from self-employment and/or the SA102 if you also earn income from employment or as a company director (see GOV.uk for the full list of Self Assessment tax return supplementary pages).
Self Assessment tax return allowable expenses for landlords
Landlords can claim for many costs arising from renting out their property. Such “allowable expenses” can include: property maintenance, repair and redecorating costs, gardening and cleaning, insurance, service charges, lettings agent and management fees, etc. You summarise your rental allowable expenses within your supplementary SA105 form.
If your rental property is furnished or part-furnished, you may be able to claim Replacement of Domestic Items Relief for replacing sofas, beds, carpets, curtains, white goods, sofas, crockery, cutlery, etc. See GOV.uk for more information on Replacement of Domestic Items Relief.
If you use something for rental income and personal reasons, for example, your mobile phone, you can only claim allowable expenses for the rental income-cost proportion. You’ll need to use a reliable method to work out how much to claim. You’ll also need to retain proof of such costs (HMRC can request this).
“Capital expenses” created by, for example, adding an extension, upgrading kitchen or bathroom, installing a burglar alarm if there wasn’t one previously, etc, are not allowable expenses. However, keep records of such costs because you may be able to offset them against Capital Gains Tax if you one day sell the property.
Need to know! You can’t claim allowable expenses if you claim the £1,000 tax-free property allowance, which is advised if your expenses are below £1,000 a year.
Completing your landlord Self Assessment tax return
Try to complete your Self Assessment tax return as soon as possible in January. The later you leave it, the closer the deadline will get, which could encourage you to rush completing your Self Assessment tax return. This makes mistakes more likely.
Take your time when completing your Self Assessment tax return. Give yourself enough time to get it done, in as few sessions as possible. Do it somewhere where there are no distractions, so you can concentrate on completing your Self Assessment tax return. If possible, don’t leave it too late in the day, when you’re likely to be more tired.
Top tip! Before you start to fill in your Self Assessment tax return – to help you get the job done quicker – have the following to hand:
Having all of your rental income and costs already conveniently summarised in accounting software really will save you lots of time when filling in your Self Assessment tax return. Figures from accounting software can easily be imported into Self Assessment filing software. Alternatively, manually summarise all of your rental income and costs before you start to fill out your Self Assessment tax return. Double check to make sure that your figures are correct.
Need to know! If you file online but realise that you’ve made a mistake in your Self Assessment tax return, you’ll have to wait 72 hours, but you’ll then have up to 12 months to correct any errors.
What if you still miss the online filing deadline?
If you miss the midnight 31 January online filing deadline and don’t have a reasonable excuse, you’ll be charged a £100 penalty. Your fine will increase if you still haven’t filed your Self Assessment tax return after three months.
Income, Expenses and tax submission all in one. GoSimpleTax will provide you with tips that could save you money on allowances and expenses you might have missed.
Our software submits directly to HMRC and is the digital solution for Landlords to record income, expenses and file their self-assessment giving hints on savings along the way.
Covering all self-assessment pages, not just property, GoSimpleTax does all the calculations for you.
Article by GoSimpleTax