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2025 Property Predictions
Happy New Year!
Whether you are an aspiring investor or already have a bunch of properties to your name, 2025 looks like it will be another year of change! Unless you have been enjoying the fruits of your investments by being on a round-the-world cruise, it won't have escaped your attention that the Labour government are implementing yet more changes to the private rented sector. Although these changes are making some landlords give up and sell up, we see an opportunity. Rents are continuing to rise, and capital investments are also increasing. Read the December Zoopla report on the UK property market to find out more. In the North West we have seen rents rise by an average of 18% since 2022 and capital growth by over 16%. What has the money in your bank account been doing since then?
This means that investing in property can continue to be lucrative and worthwhile if you know how to do it. Structuring your portfolio for tax efficiency is vital. Using an experienced team like Best Nest you can get updates, information and education helping to make your property investments perform at their best in 2025.
The Renters' Rights Bill
Although exact time frames haven’t been confirmed for the Renters’ Rights Bill, the Bill is progressing through Parliament apace.
The Bill will return to Parliament on 14 January for report stage. Following this, the Bill will move to the House of Lords.
The Bill will introduce widespread and significant changes to renting in England, some of the biggest changes in a generation.
It will change tenancies, the process of gaining possession, the rules around pets in properties, and introduce a number of other measures.
The Bill is expected to come into force in summer 2025.
Once the Renters’ Rights Bill comes into affect, all BTL properties will need to meet the Decent Homes Standard. According to these standards, properties must be free from health hazards like damp and mould, and provide a safe, warm, and compliant home. At Best Nest we can take the hassle out of these requirements by arranging all checks and ensuring your property is fully compliant. If you have an HMO which is licensable (five or more people living there) we take care of ensuring it already meets these standards.
EPC certificates
The Government launched a consultation on changes to the current Energy Performance Certificate (EPC) system at the beginning of December.
Changes that are being proposed include reducing the validity periods for EPCs, changing how EPCs are calculated, and expanding the current rules so all HMOs will be required to have an EPC certificate. This consultation closes in February. To read more about the proposals and how to have your say as a landlord, click here.
In addition to this, the Government is set to launch a consultation on increasing minimum energy efficiency standards in the domestic private rented sector. Currently, landlords are required to have a minimum energy efficiency rating of E in their rentals unless a valid exemption applies. While time frames for EPC changes are not known at the moment, it’s fair to say these two consultations will be hugely important for landlords in 2025, insofar as confirming the Government’s direction of travel for energy efficiency in privately rented homes.
EICRs - is yours valid?
According to the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, private landlords must ensure every electrical installation in their residential premises is inspected and tested at intervals of no more than 5 years by a qualified and competent person.
The regulations came into force on 1 June 2020, so 2025 will mark five years since these regulations came into force, meaning there could be a huge demand for contractors in 2025.
If your certificate is up for renewal, or perhaps you need an EICR conducting for a new property, then contact us to find out how we can help with this and other letting support that yo might need.
Stamp Duty Rates
Labour's first budget created shockwaves for investors, increasing with immediate effect SDLT rates for investors - the SDLT rate for second homes and additional residential properties increased by 2% across all SDLT taxation bands. SDLT thresholds reverted back to their September 2022 levels. This means that ensuring the property you buy is a good deal, and will allow you see a return on your investment quickly is more pertinent than ever.
Despite all these changes, Best Nest can help you navigate the changes, educate you to stay ahead of the curve and assist with all aspects of investing. If we can't do it, we definitely know someone who can help you - whether that's to get tax advice, accountancy support or re-structuring your portfolio. To have an initial conversation to determine what you need to make 2025 your best year ever, you can book a call here now.
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