As if there wasn’t enough to already contend with, there will be no let up in new rules and regulations for the lettings sector in 2021. To ensure you start the New Year fully aware of the most important introductions, we’ve rounded up the PRS changes you need to implement now and plan for during 2021:
- Trading in Tier 4: the Government continues to keep the property market open, with buying, selling and letting continuing even in the harshest hit areas. The safety of all involved remains paramount and there is updated Covid-safe guidance for those moving within Tier 4 here.
- A new version of How to Rent: you may have missed the latest update to this essential guide, with changes last made on 10th December 2020. Be sure to download and issue the most up-to-date edition to tenants with immediate effect – find it here.
- Eviction and enforcement bans to lift: at the time of writing, landlords and their letting agents were gearing up to take action in non ‘egregious’ tenancy cases. Eviction notices can be served after 11th January 2021, with eviction enforcement action restarting on 25th January 2021. Check the Government’s official advice here.
- New EICR rule: electrical safety steps up to be all-encompassing this spring, with the new EICR rule being introduced from 1st April 2021.The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 will apply to all tenancies in England – including those that already exist.
- Stamp duty changes: dual agencies who sell to international investors and subsequently manage their lets should note that overseas purchasers will have to pay a 2% surcharge on residential transactions from 1st April 2021. This coincides with when the stamp duty holiday is scheduled to end.
- Compulsory client money protection deadline: despite being extended more than once, agents will have to comply with compulsory client money protection via a membership to an approved scheme by 1st April 2021.
- Budget 2021: the Chancellor will take to the lectern on Wednesday 3rd March to deliver 2021’s Budget. Expect the focus to be on economic recovery and recession support, although there is growing concern that Mr Sunak will announce an increase in capital gains tax (CGT).
- Ban on Section 21 notices: if we are following the Government’s preferred timeline for 2021, the Renters’ Reform Bill stipulates that Section 21 eviction notices will cease to exist at some point in the coming 12 months. No fixed date for the ban has been published but agents should prepare for an imminent legislative change.
If the pace at which the PRS changes is proving hard to keep up with, or you need administrative help implementing all the rules, let ARPM help. Our outsource service ensures every let in your book is legally compliant. Talk to us today about passing over your property management duties to our experienced lettings experts.
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