This month, many new regulations are coming into force that will affect the property industry. Jonathan Rees FNAEA Managing Director of Jonathan Rees Estate and Letting Agents highlights these key laws and discusses what impact they could have on the UK’s housing market.

April is a game changing month for the industry due to a number of new laws coming into force. Here is a brief overview of the changes that you can expect to see this month.

The recent budget confirmed that an additional 3% of Stamp Duty will be introduced on buy to let and second homes, in an attempt to curb the growth of the private rental market.

Marcus Whewell, CEO of The Guild of Professional Estate Agents believes that this will have an impact on prices: ‘When the cost of buying a private rental property increases, rents would normally follow suit as landlords seek to maintain their margins. For that reason, one likely effect is a rise in prices and rents.’

The government has also announced that HMRC is removing the ability of landlords to deduct ‘wear and tear’ from rental receipts before income tax is applicable. Again, it is thought to possibly increase the price of rents as Whewell explains, ‘Although many landlords have complained that this could dramatically reduce the yields from such properties, in a free market, rents could simply adjust to cover this extra risk.’

Other imminent changes include an increase of an average £58 for Council Tax on properties in Band D. This is the consequence of hundreds of councils around the country increasing rates by up to 4% – the largest Council Tax increase for eight years. On the other hand, properties that are rented from a housing association or the council will see a rent decrease by 1% each year for the next four years, starting from April.

Jonathan Rees says, “The central Hampshire area from Winchester to Southampton, and Romsey to Bishops Waltham including Eastleigh/Chandlers Ford remains a highly desirable area for tenants and demand for rental property continues to outweigh supply. The whole area offers very good access for commuters via road, rail or air and benefits from excellent schools and other amenities for families”. Jonathan Rees Property Services 023 8027 6500.