Landlords | Key Lettings Legislation and Compliance Dates for 2023 & Beyond

 

From the Renters (Reform) Bill to the Chancellor’s Autumn statement, landlords are going to need Vesper Group’s guidance more than ever in 2023 when it comes to compliance. Here are some key events to look out for:

Second reading for the renters reform bill

Date: TBC

The Renters (Reform) Bill will improve the system for the 2.3 million landlords in England. The reforms have been developed in consultation with landlord and tenant groups over the past 5 years. Some of the legislations in The Renters (Reform) Bill include:

  • Abolishing section 21 ‘no fault’ evictions and moving to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction.
  • Introducing more comprehensive possession grounds so landlords can still recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears.
  • Introducing a new Private Rented Sector Ombudsman which will provide fair, impartial, and binding resolution to many issues and prove quicker, cheaper, and less adversarial than the court system;
  • Giving tenants the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.

King's Speech

Date: 7 November 2023

The first King’s Speech for King Charles will take place on 7 November. This gives the government chance to share an overview on laws it aims to pass as well as its priorities for the coming months.

This will be the last parliamentary session before the general election which is expected in the first half of next year. Agents will need to listen out for any mention of the Renters (Reform) Bill to understand how that’s been prioritised for the end of this year.

Autumn statement from the Chancellor

Date: 22 November 2023

The Autumn Statement shares an update on the government’s plans for the economy. With a general election looming for this government, Jeremy Hunt will likely continue to face calls from the industry to offer more favourable tax incentives for landlords.

Increasing Minimum Energy Efficiency Standards (England and Wales)

Date: TBC

Although an increase to minimum energy efficiency standards is awaiting government feedback from the consultation stage, it’s expected that, from April 2025, all new tenancies for private rented properties will require an Energy Performance Certificate (EPC) rating of C or above, up from the current requirement of a band E rating.

From 2028, this increase will apply to all tenancies. This new legislation would also increase the capped amount that landlords would be required to invest to achieve the higher ratings, from £3,500 to £10,000.

Making Tax Digital for Income Tax Self Assessments (UK)

Date: 6 April 2026

For landlords registered for Income Tax Self Assessments and with an annual business or property income above £50,000, income and expenses will need to be submitted digitally four times a year from 6 April 2026, and allowances and adjustments at least once a year, under Making Tax Digital.

For landlords with an income between £30,000 to £50,000 the deadline is April 2027.

What can you buy in Manchester for the UK’s average property price?

If you’re thinking about buying a property in Manchester, you might be wondering what the average asking price is, and what’s happening in the housing market right now.

According to the UK House Price Index for 2023, the current average price for a property in the UK is £289,818. In the North West specifically, the average price currently stands at £214,431 which has increased by 7.2% compared to January last year.

So, what could you expect to find around this price if you’re searching for your new home? Take a look…

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New-build apartment in Ancoats

One beds from £279,950

Now Completed, apartments in this new-build development are aimed at professionals seeking a sophisticated, convenient and social living experience in the heart of Manchester city centre. Featuring 155 high-spec 1, 2 and 3 bedroom apartments, the development also boasts its own exclusive gym, private gardens, coffee roastery and shared social space.

A one bed apartment here is available to purchase for £279,950, that is £9,868 less than the average UK property price. At Vesper Group we can also offer an exclusive £5k Discount off Unit Price.*

Apartments near Manchester's leading Universities

Two beds from £237,000

Situated alongside St George’s Park with views of Deansgate to the northeast, This new development is Located between Trafford and Manchester City Centre. The Manchester Metropolitan University and The University of Manchester are only a mile from the development – a walkable distance for many of the students that continue to underpin Manchester’s robust rental market.

A two-bed apartment here is available to purchase from £237,000 that is £52,818 lower than the UK average. At Vesper Group we can also offer an exclusive £5k Discount off Unit Price.*

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Apartments in the hub of MediaCityUK

One beds from £279,950

In an exciting new flagship development are 365 exclusive luxury apartments to the home of UK’s media hub. 

The new development features four iconic towers, each with unique façades with a stunning architectural design. Each tower is set within a modern landscaped public realm, which features cafe spaces, restaurants, retail and office space alongside the residential offer.

You can purchase a one bedroom apartment here from £202,995 and a two bedroom apartment from £265,000. 

Apartments near Manchester Victoria Station

Two beds from £237,000

Located just an 8 minute walk from Manchester Victoria Station, this development blends city living with a river park on its doorstep. The 275-apartments tower boasts over 4,500 sq ft of exclusive, private amenity featuring co-working spaces, resident’s bar and lounge, gym and yoga studio, co-working spaces and private dining. 

One bedroom apartments are available from £245,000 in this development, with Vesper Group also offering a 5% discount on purchase price & £10,000 Cashback Paid on Completion!.

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A guide for Non-UK resident landlords to receive your UK rental income without deduction of UK tax - individuals (NRL1)

 At Vesper Group we can provide you with a general overview of the process for non-UK resident landlords to receive UK rental income without deduction of UK tax using the NRL1 form. However, please note that tax laws and regulations can change, and it’s always best to consult with a tax professional or legal advisor who specialises in UK taxation to ensure you’re following the most up-to-date and accurate information for your specific situation.

 

 

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1. Determine your residential status

Before proceeding, you need to establish whether you are a non-UK resident landlord for tax purposes. The total days you spend in the UK within a tax year (i.e 6 April to 5 April) determines your tax status as either a UK resident or non-resident for tax purposes. 

Top tip! To find out whether you were a UK resident or not in any tax year from 6 April 2016, you can use HMRC’s online residence status checker. Government website GOV.uk provides details about the government’s Statutory Residence Test, which further explains many of the above points.

2. Apply for Approval to Receive Rent Gross

As a non-UK resident landlord, you can apply for approval from HM Revenue and Customs (HMRC) to receive your rental income without deduction of UK tax using the NRL1 form. This form is used to claim your rental income without tax withholding.

 

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3. Complete and Submit NRL1 Form (Self-Completion)

To apply for approval, you need to complete and submit the NRL1 form. The form can typically be found on the official UK government website or obtained from a tax advisor. You will need to provide information about your rental property, your personal details, and your tax circumstances. Make sure you provide accurate information to avoid any complications later on.

4. Speak to Vesper Group

At Vesper Group we offer a service which is FREE of charge, to fill out the NRL1 on your behalf by a highly qualified chartered accountant. This can ease any stress or anxiety you may have about completing this form correctly. 

After submitting the NRL1 form, whether this is self done or with Vesper Group, you will need to wait for approval from HMRC. This process may take some time, so be patient. Keep copies of all documents you submit for your record.

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5. Reporting your income & Filing Tax Returns

Once you receive approval, you can receive your UK rental income without tax deduction. However, you still have an obligation to report this income in your home country (if required) and potentially in the UK as well. The UK has double taxation treaties with many countries to avoid double taxation, so it’s important to understand how these treaties apply to your situation.

You might need to file a Self Assessment tax return in the UK to report your rental income and claim any allowable expenses or deductions. Even if you’re not liable to pay UK tax due to the double taxation treaty or other reasons, filing a tax return may still be necessary.

Get Expert Advice

At Vesper Group we offer a service which is FREE of charge, to fill out the NRL1 on your behalf by a highly qualified chartered accountant. This can ease any stress or anxiety you may have about completing this form correctly. 

Spotlight on Castlefield; why invest here?

Investing in property in Castlefield, Manchester can offer several potential benefits and opportunities, making it an attractive option for some investors. Here are some reasons why you may want to consider investing in property here:

 

Prime Location: Castlefield’s central location within Manchester makes it highly desirable for residents and tenants alike. Its proximity to the city centre means easy access to a wide range of amenities, including shops, restaurants, cultural attractions, and business districts. This attracts a mix of young professionals, students, and families.

Castlefield’s historic character, with its canals, warehouses, and cobbled streets, gives it a unique charm that appeals to residents. Whilst also offering a mix of city living and green spaces, providing an attractive lifestyle for potential residents.

 

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Potato Wharf, Castlefield

Two from £350,000

Potato Wharf is a peaceful Canal side Development, just a few minutes walk away from the bustling Bars and Restaurants in Deansgate and Spinningfields. The apartment already has a tenant in situ, signed for 12 months.


Strong Rental Market: With excellent transport links, including train stations, tram stops, and bus routes, commute time is convenient for those traveling around Manchester and to and from the Universities in the city. This in turn creates a robust rental market, providing an opportunity to generate rental income from a steady stream of tenants seeking accommodation in the area.

Potential for Long-term Growth: Manchester, as a city, has been experiencing significant economic growth and investment. Investing in property in a city with positive growth prospects can offer long-term potential for property value appreciation. Property investment in Castlefield can be a way to diversify your investment portfolio, spreading risk across different asset classes.

 

Thinking of moving to Castlefield?

For more information on property prices in Castlefield, as well as a list of properties we have in the area, contact us today.

How will the new EPC regulations affect Landlords?

Late last year, the Government proposed new changes to the EPC regulations that would change the Minimum Energy Efficient Standards, coming into play between 2025 – 2028. 

 

At the moment, you need an EPC rating of at least an E to be able to rent out your property. The big change is that beginning in 2025, any newly rented properties will need a rating of at least a C, and any existing tenancies will have until 2028 to do the same. The changes are being put in place to ensure energy-efficient homes meet the government net-zero carbon targets.

To go alongside the change of rating, a harsher penalty up to  £30,000 per property will be dished out to a landlord for non-compliance. This penalty is currently just £5,000.

How to prepare?

New mortgage charter agreed to support homeowners.

Chancellor Jeremy Hunt MP has announced a set of measures designed to provide support to residential mortgage customers as interest rates continue to climb. The plans do not include any specific measures for buy-to-let investors.

The Charter – agreed between the UK Government, principal mortgage lenders and the FCA – has three key elements:

  • Anyone can talk to their bank or mortgage lender for information and support, and this will have no impact on their credit score.
  • People can choose to swap to an interest-only mortgage or extend their mortgage term, with the option to switch back to their original mortgage deal within six months ‘no questions asked’ and with no impact on their credit score.
  • Customers won’t be forced to have their homes repossessed within 12 months of their first missed payment.

There is also flexibility for customers approaching the end of a fixed rate deal; they will have the opportunity to lock in a deal up to six months ahead and still apply for any better deals that are available right up to the start of their new term. Affordability checks will be waived for those switching to a new mortgage deal if they are up to date with their payments when their fixed term ends.

The proportion of disposable income spent on mortgage payments is currently at 5.4%, compared to around 10% in the 1990s and prior to the financial crisis.

Mr Hunt said the measures will take effect within the next two weeks. It is unclear how the commitments will be monitored and if or when they expire.

Spotlight on The Northern Quarter: Why invest here?

The Northern Quarter is a vibrant and thriving neighbourhood located in the city centre of Manchester. It has gained a reputation as a highly desirable area to live, work, and invest in for several reasons:

Cultural and Creative Hub: The Northern Quarter is renowned for its vibrant arts and cultural scene. It is home to numerous independent art galleries, theatres, live music venues, and creative spaces. The area has a strong sense of community and a thriving creative industry, attracting a diverse range of artists, designers, and entrepreneurs. This cultural vibrancy adds to the area’s appeal and creates opportunities for investment in creative ventures and cultural events.

Regeneration and Growth: Manchester, in general, has been experiencing significant regeneration and economic growth in recent years. The city has attracted substantial investment from local residents and internationally, and has become a hub for industries such as finance, technology, and media. The Northern Quarter has been a focal point of this growth, with various redevelopment projects and improvements to infrastructure. Investing in property within a growing area can lead to long-term capital appreciation.

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One Port Street, Manchester

Prices from £295,000

Located in Manchester’s iconic Northern Quarter, One Port Street will redefine luxury City Centre living. Exceptional Architectural Design and a world-wide renowned developer underpins the quality and excellence of One Port Street. Setting the standard for Manchester, residents can benefit from a state-of-the-art gymnasium, residents lounge and roof terrace, right in the heart of the City.

Rental Demand: Manchester has a large student population, with several universities in the area. The Northern Quarter’s proximity to educational institutions like the University of Manchester and Manchester Metropolitan University makes it an attractive location for students seeking accommodation. Additionally, the neighbourhood’s popularity among young professionals and creative individuals creates a consistent rental demand. This can result in a steady rental income for property investors.

Transport Links: The Northern Quarter benefits from excellent transport links, including its proximity to Manchester Piccadilly train station, which provides connections to other major cities in the UK. The area is also well-served by buses and trams, making it convenient for both residents and commuters. Good transport infrastructure enhances the accessibility and desirability of a location, making it more appealing for property investment.

Low stock, high demand: The Northern Quarter is a relatively compact and established neighbourhood, which means there is a limited supply of property available. With high demand and limited availability, property prices can experience upward pressure, potentially leading to strong capital appreciation over time.

Thinking of investing in The Northern Quarter?

For more information on property prices as well as a list of properties we have in the area, contact us today.

The impact of football on Manchester's growing property market

With Manchester City’s recent success in winning the treble, and Manchester United having one of the largest fan bases in the world, we are looking at the relationship between football and its impact on the property market in Manchester. Here are a few ways in which they coincide:

 

The success and global recognition of Manchester’s football clubs contribute significantly to the city’s economy. This, in turn, has a
positive impact on the property market. The presence of successful football clubs attracts businesses, investors, and individuals to the city, leading to job creation, increased tourism, and higher demand for properties. Property developers take advantage of this demand by developing properties near football
stadiums and other related areas. This heightened demand for housing has also resulted in rising property prices and a buoyant market.

The presence of successful football clubs has played a
crucial role in the regeneration of certain areas in Manchester. For instance, the redevelopment of the area around Manchester City’s Etihad Stadium and the surrounding neighbourhoods has brought about significant improvements in infrastructure, housing, and commercial spaces. These developments have led to an increase in property values and attracted further investment in the area.

 

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The Bailey, Manchester

Prices from £237,000

Located in Old Trafford, The Bailey is a modern development comprised of 104 one and two-bed apartments. The Bailey is believed to be extremely popular with tenants. The Manchester United Stadium is just 13 minutes away via Tram or a walkable distance for many, that continue to underpin Manchester’s robust rental market. 

Football clubs require robust infrastructure to support their operations, including stadiums, training facilities, and other amenities. The development of such infrastructure often leads to the creation of new properties and commercial spaces in the surrounding areas. Property developers seize the opportunity to cater to the needs of football clubs and their fan base, contributing to the overall growth of the property market.

Manchester’s football clubs enjoy worldwide recognition and have a significant influence on the city’s reputation. The success and international appeal of these clubs elevate Manchester’s profile as a global sporting destination. This heightened prestige enhances the city’s overall attractiveness, making it an appealing location for property investment, both domestically and internationally.

Overall, the relationship between football and property in Manchester is a symbiotic one. Football clubs and their success drive economic growth, which stimulates the property market. At the same time, property development and investment support the infrastructure and amenities needed to sustain the footballing culture and attract fans and investors to the city. With Manchester United showing no signs of losing its huge worldwide following, and Manchester City continuing its dominant force in English football, property prices are expected to increase by 57% by the end of 2028. This is the highest projection among all the major UK cities.

Thinking of Investing in Manchester?

For more information on property prices in Manchester, as well as a list of properties we have in the area, contact us today.