REGULATORY ROUND-UP: RICHARD BLANCO

WINTER 2015

AGENDA

Regulatory round-upRichard Blanco (NLA)

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TAX CHANGES

• Restriction of Mortgage Interest Relief• To basic rate phased over four years from 2017• Calculate as tax credit instead of deduction

• Abolition of 10% Wear & Tear Allowance• Renewals allowance only from April 2016

• Changes to taxation of dividends• 7.5% over £5,000 (previously 0% to 40% threshold)

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BUDGET WELFARE CHANGES

• Reduction in Universal Credit Limits• £23,000 in London, £20,000 elsewhere• Also shift from tax credits to ‘living wage’ of £9/hour• Working age benefits frozen for 4 years• Mortgage interest benefit becomes a loan

• Young People Hard Hit• National living wage over 25• No LHA for 18-21 year olds• Replace maintenance grants with loans

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OTHER ANNOUNCMENTS IN THE BUDGET

• Rent-a-room relief• Increase from £4,250 to £7,250

• Housing Associations• Rents down by 1% per annum• Facing right to buy (also pay-to-stay)

• Planning Changes• Permitted development to build up to height of neighbouring properties• Default planning permission to build residential in zoned brownfield sites

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2015 DEREGULATION ACT

• Changes brought in earlier this year• All deposits (including pre-2007 must be protected)• Wording of Section 8 and Section 13

• Std s21 & Retaliatory eviction from Oct 2015• Standard s21 (invalid if no EPC, DPC, GSI, How To Rent booklet)• No s21 in first four months of tenancy• Six month moratorium on Section 21, if local authority notice is

served

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SMOKE ALARM AND REVIEW OF HMOs

• Put one smoke alarm on every floor and carbon monoxide alarms in rooms with solid fuel heating

• Test at start of each tenancy - £5,000 fine• £3m funding available• Scotland introducing 5 yearly fixed wiring and PAT checks from 1 Dec

2015.

• Government consultation on HMOs• 5 people, 2 households, any number of storeys

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RIGHT-TO-RENT IMMIGRATION CHECKS

• UK rollout from 1 February 2016• Landlords or agents (or tenants, if sublet)• Establish continuous or time-limited statutory excuse, acceptable

documents in List A or B• Valid for one year, keep copy for one year thereafter• Follow up checks for time-limited cases• Some exemptions• Fines of £80/£1,000 to £500/£3,000

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IMMIGRATION BILL

• New s8 ground for eviction re. right-to-rent

• New legal notice served by Home Office on tenant

• New criminal offence, five years’ prison penalty

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HOUSING BILL

• Database of criminal landlords and letting agents• Banning and rent repayment orders beyond licensing

• Civil Penalty Notices for housing condition• Alternative to HHSRS prosecution

• Greater use of rent repayment orders

• New procedure for abandoned properties

• Local Authority access Deposit Protection Data

• Revised fit and proper person test

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LICENSING AND ARTICLE 4 UPDATE

• Borough-wide:

• Newham, Barking & Dagenham, Waltham Forest, Camden, Brent, Hounslow, Ealing, Barnet, Croydon, Kingston, Redbridge

• 20% limit on Selective Licensing

• Partial:• Islington, Tower Hamlets,

Haringey, Southwark, Hammersmith & Fulham, Lewisham

• Article 4:• Newham, Barking &

Dagenham, Waltham Forest, Enfield, Haringey, Hillingdon

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ON THE POLITICAL AGENDA

• Jeremy Corbyn’s Housing Policy

• Council housing and home ownership• Reduction of Housing Benefit Bill by introducing rent control• Longer tenancies, Decent Homes Standard• Land Value Tax, end ‘subsidies’ to landlords• End extension of permitted development rights• National register and local licensing• Ban non-UK ownership• Fewer BTL reduce house prices

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