Private landlords are being advised to be aware of changes to legislation affecting the buy-to-let sector, thereby avoiding the risk of receiving a fine.
According to new research from Direct Line for Business, a raft of new measures introduced in recent years has left landlords vulnerable unless they are fully aware of their obligations.
Changes to legislation include an additional 3% stamp duty surcharge, the scrapping of the wear and tear allowance, changes to mortgage interest tax relief, and changes to Right to Rent laws. There is also an impending ban on letting agents' fees for tenants, while new energy efficiency regulations will come into force in 2018.
Christina Dimitrov, Business Manager at Direct Line for Business, said: "Being a landlord in the current climate can be a profitable business, especially if there is a demand for rental properties as we’ve seen in recent years.
However, with so many changes taking place, and with more on the horizon, it’s essential for any landlord to be fully up to speed with legislation, as the penalties for breaking the law can erode any potential profits".
In light of all the changes to legislation, it has become increasingly challenging for landlords to know and understand their responsibilities and obligations as a landlord. We advise landlords to seek professional advice, whether it be from a tax expert or an experienced letting agent.
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