Keep in mind that nothing is set in stone until the 30 October, so consider not making any major decisions until you know what is happening and when.
The challenge facing the private rented sector: Nationwide and its buy to let arm, The Mortgage Works, have consistently welcomed the reforms in the Renters’ Rights Bill as well as the introduction of Minimum Energy Efficiency Standards, as long as they are implemented effectively. We also understand the need to enable effective Government spending to deliver inclusive economic growth in the longer term.
What to expect in the Autumn Budget
Rental reform and tenant rights: The ongoing discussions around rental reforms could lead to new measures aimed at protecting tenants, such as clearer eviction rules or expanded tenants’ rights. While this may require adjustments for landlords, The Mortgage Works will be here to help you understand and navigate any changes. It has been suggested that the Renters’ Rights Bill may be more balanced than expected and the Government has shown a commitment not to introduce rent caps. We believe that good landlords should be delivering good quality homes and providing good service, so the extension of the Decent Homes Standard and ‘Awaab’s Law’ to the PRS are welcome.
Minimum Energy Efficiency Standards: Energy efficiency is likely to remain a focus. Clarity that Minimum Energy Efficiency Standards will be updated to require an EPC C rating by 2030 is welcome, but further detail is needed urgently.
Landlords may see further incentives or regulations regarding the energy performance of rental properties, encouraging improvements in sustainability. Any new funding for retrofitting homes could represent a positive step towards reducing long-term maintenance costs.
Support is particularly important as the most vulnerable households are likely to be living in the hardest to improve homes. There needs to be an effective framework for energy efficiency including clarity around the future of EPCs, information on energy efficiency improvements and skills training. Nationwide and The Mortgage Works are in regular discussions with government on the standards to ensure landlord views are being considered.
Financial support will be essential to enable landlords to make energy efficiency improvements. This should be a combination of grants, for the hardest to improve properties and the ability to offset spending on green improvements against rent for income tax purposes.
Capital Gains Tax (CGT) review: The government has been reviewing Capital Gains Tax for some time and there may be changes to the current threshold rates. If CGT is increased or reliefs are reduced, it could affect landlords who are selling properties. However, any changes are expected to be gradual, giving landlords time to adapt. It has been suggested that the government won’t raise Capital Gains Tax on property sales, with the focus instead on CGT on shares, although this won’t be confirmed until the Budget.
How The Mortgage Works can support you
At The Mortgage Works, we understand that changes can feel uncertain, but we are committed to providing support and guidance, as well as working with government in order to help make a better Private Rented Sector for all.
Expert support: our team of experts are here to help you understand how any changes may affect your portfolio and how you can make sure you are up to date with the latest legislation.
Regular updates: as soon as the Autumn Budget details are confirmed, we will provide timely updates on our news and insights section on how it impacts landlords.