Here at Landstones we are aiming to bring you a monthly insight into the current trends in prime central London lettings market. The lettings market is facing a turbulent time with several pieces of new government legislation having been enacted in 2019 and more coming into force in 2020.
One of the biggest changes from 2019 was the tenant fee ban which applies to new or renewed tenancy agreements signed on or after 1 June 2019. The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. This does away with referencing fees and tenancy agreement administration fees for most AST agreements designed to make renting cheaper for tenants.
One ongoing piece of legislation which may seem like old news, but it’s an ongoing saga that continues to affect landlords across the country is Mortgage interest tax relief. As of the end of 2019 landlords will only be able to claim 25% of finance costs, with the remaining 75% restricted to the basic rate of taxation.
The combination of the mass of new and existing legislation has had a restricting effect on the supply of rental stock in the market, which through January and February of 2020 have seen prices rise across the board from studios to 1-bedroom flats and all the way through to large family homes.
Here at Landstones we pride ourselves on doing what is best for our clients and looking after our tenants. We offer the best stock and the very highest level of service.