What does the election result mean for you?
Each General Election sees a change in policy, which can have a direct effect on you and your property. So what does this election result mean for you?
The Mansion Tax, which would have seen an annual charge to those properties over £2 million and impacted on a number of pa black clients, will no longer be implemented.
The Conservative Manifesto stated that the government would focus on – Helping you to buy your own home.
• Keep mortgage rates lower
• Build more homes that people can afford, including 2000 new starter homes.
• Extending the Help to Buy Equity Loan Scheme.
• The Introduction of the Help to Buy ISA
• Extending the Right to Buy.
If these commitments are realised, it would have a positive impact on the property market in Wales as well as providing you with options to help you buy your new home.
Although very positive news for the property industry on a national level, it’s important for landlords and tenants to keep in mind the following changes to welsh housing legislation. The Housing (Wales) Act 2014 and the Renting Homes Bill are still to go ahead, affecting landlords, letting agents and tenants right across Wales.
From the Autumn, landlords in Wales will be required to register as a landlord and provide a list of each property to the (national) 'licensing authority’, where failure to register could mean a hefty fine and exclusion from the PRS. Letting agents will face the same licensing requirements to continue operating, and although they will not have to register, there may be differences with regards to the Code of Guidance and training aspects.
The Renting Homes (Wales) Bill, if successfully passed through law in early 2016, will “replace the current confusing and complex area of law with a clearer, simpler and more straightforward legal framework." Briefly, it will aim to simplify tenancies and licences for homes across Wales with just two type of contract and would also give landlords the right to evict their tenants for anti-social nuisance; already available to landlords in England. And with 1 in 3 people in Wales now living in a rented home this is sure to affect over 1 million people, but only time will tell what the actual impact on the Welsh private rented sector will be.
Welsh landlords also need to remember their new obligation, as of January 2015, via the Water Industry Act. This means that landlords with properties in the Welsh Water and Dee Valley Water areas must share certain information about their tenants with their water company. Where failure to do so could result in becoming jointly liable for your tenants water debt.
Our specialist team are here to support your next move. If you would like to discuss in more detail how the election result affects your property, please contact your local branch.