Tag Archives: property legislation help for Bristol landlords

Will Mortgage Relief changes in 2017 hit buy-to-let landlords in Bristol?

The team at City Rental Services have been speaking to some concerned buy-to-let landlords in Bristol recently – and their cause for concern is over upcoming property legislation for 2017 around the subject of Mortgage Relief.

Advice for buy-to-let landlords in Bristol from City Rental Services

From 06th April 2017, the Government is introducing new legislation affecting the current mortgage relief rules for property investors and property landlords.

This measure will restrict relief for finance costs on residential properties to the basic rate of Income Tax. This will be introduced gradually from 6 April 2017.

Finance costs includes mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. No relief is available for capital repayments of a mortgage or loan.

Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.

Landlords will be able to obtain relief as follows:

  • in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction
  • in 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reduction
  • in 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reduction
  • from 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction

This could potentially restrict the profitability for some buy-to-let landlords in BS postcodes, leading to a slowing down of property investment in the city.

You can read more about the potential legislation and upcoming changes here.

What we would advise at this stage is not to panic, or to pull any potential property investment deals, but to instead monitor and review the legislation and make a fully-informed decision based on your existing property portfolio.

If you’re looking for advice on rented accommodation in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

Bristol landlords need to be aware of smoke and fire alarm changes

This week at City Rental Services we’re taking a closer look at recent legislative changes to smoke and fire alarm provision and testing for rented properties in Bristol and all over England to ensure that property landlords are up-to-speed with their legal obligations.

advice for Bristol landlords on fire and smoke alarms from City Rental Services

Since October 2015, it’s been a legal requirement for property landlords to provide the following level of fire and smoke alarm testing:

Smoke alarms, fire alarms and carbon monoxide alarms must be tested ON THE DAY that a new Tenancy commences. Not the day or week before or after.

This is a critical consideration for all tenancies commencing in Bristol during this year’s student swap-over.  We have made our best efforts to inform all of our City Rental Services landlords via email over the past few months.

This means, for example, that on 01st July, we’ll be testing more than 50 rented student properties.

We will be sending one of our qualified and approved electricians to each property with a third party to witness his checks.

This form of third-party self-certification is in place when a tenant will not be present on the date the tenancy starts, which is very common with student properties

We will also make photographic evidence of the visit to the property by the electrician.  This will be kept on record should it ever be required at a later date.

Landlords should note that under the recent alarm testing legislation changes, it is the responsibility of the tenant to then test and change any alarm batteries, as and when needed.

The National Landlords Association has provided a useful fire safety tool, which can be utilized here.

If you’re a property landlord in Bristol and are unsure of your level of compliance regarding any alarms in any of your rented properties, feel free to get in touch with us. Our fully-managed lettings team can assist you further.

If you’re looking for advice on rented property in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.