I recently published a video on my YouTube channel about new landlord laws coming to England. These changes to the laws for landlords are something every property investor needs to know about, as they could have a major impact on their business. The government is causing havoc in the market by enacting these new landlord laws in an extremely haphazard manner. Worse still, some of these new landlord laws have a penalty of prison!
In the full video (above), I explain exactly what these new laws are and what actions you need to take as a landlord. I highly recommend watching the full video until the end, as it contains important information that could keep you out of serious legal trouble! In this article, I will explain the changes to the EPC rules, how new landlord laws could send you to prison and the new Airbnb regulations.
1. EPC Rules
Initially, the government announced plans to require all landlords in England to have an EPC rating of at least a C by 2025. Then they changed their minds and said that they would give landlords more time, extending the deadline until 2028. Now it turns out they have dropped the change entirely! This meant that landlords were selling properties in anticipation of the new rules that they didn’t actually need to sell!
Because there was an increased supply in the property market, this hurt prices. I think the government probably never intended to bring in the new rules, rather it was just a way to scare landlords into making changes. The government knew many landlords would upgrade their properties in anticipation of the new rules. However, I think they had no intention of enforcing it on those that didn’t.
2. New Landlord Laws Could Mean Prison For Landlords
One of the things I find most concerning is that some of these new rules could mean prison for landlords that fail to comply. This is particularly problematic when the government is failing to be clear about these regulations. Unless landlords follow the news extremely carefully, they may well miss the government’s latest U-turn on whatever regulatory change they are planning at the time!
The proposed changes to EPC rules were going to carry a penalty for non-compliance of a prison sentence. This could have meant landlords being locked up for simply not having an energy efficient property! This seems extremely disproportionate and designed to unfairly penalise landlords.
3. Airbnb Regulation
From October 2023, all short-stay lets will need to have smoke alarms and fire doors on bedrooms and exit routes. While this will be an extra expense for people with Airbnb properties, it is probably a reasonable requirement. Personally, I tend to use fire doors in my properties anyway – even when it isn’t required by law.
These regulations could have an upside for professional property investors with Airbnb properties, however. At the moment, anyone can rent their property out on a short term basis. This means there are currently a lot of people cutting corners. These regulations will remove some of the people at the lower end of the market, making good investors more competitive.
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