Stamp Duty Holiday from July 2020 to March 2021 saves buyers up to £15,000!
The chancellor has announced a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland.
The tax threshold has been temporarily raised until next March to boost the property market and help buyers struggling because of the coronavirus crisis.
The changes have come in with immediate effect.
What has changed?
The government has temporarily increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 31 March 2021.
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
This will save buyers as much as £15,000, if they are buying a property of £500,000 or more.
The move is aimed at helping buyers who have taken a financial hit because of the coronavirus crisis. It is also intended to boost a property market hit by lockdown. According to the Halifax, house prices have fallen for four months in a row.
The average stamp duty bill will fall by £4,500, Chancellor Rishi Sunak has suggested, with nearly nine out of 10 people buying a main home this year paying no stamp duty at all.
How much stamp duty will I pay now?
If the property purchased is your main home you won't pay any stamp duty on it at all if it costs £500,000 or less. The next portion of the property's price (£425,000 to £925,000) will be taxed at 5%, and the £575,000 after that (£925,001 to £1.5 million) will be taxed at 10% The remaining amount (over £1.5 million) will be taxed at 12%.
Before the announcement, stamp duty in England and Northern Ireland was paid on land or property sold for £125,000 or more, while first-time buyers did not pay any stamp duty up to £300,000. But this stamp duty holiday replaces the first-time buyer discount.
Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3% of stamp duty they were charged under the previous rules.
How long will the stamp duty holiday last?
This is a temporary measure designed to boost the flagging property market. It is effective immediately and will last until 31 March next year.
Can I still benefit if I've already completed a purchase?
The holiday applies from 8 July, which means anyone completing a property purchase before that date will have to pay the full normal stamp duty. Stamp duty is payable upon completion, so if you've exchanged contracts and are currently waiting for completion you will be able to benefit from the change.
How much could a buyer save?
The change will save buyers as much as £15,000, if they are buying a property of £500,000 or more. Before the stamp duty holiday, if you bought a house for £275,000, for instance, the stamp duty you'd have had to pay would have been £3,750.
That's based on 0% duty on the first £125,000, 2% on the next £125,000 (£2,500), plus 5% on the final £25,000 (£1,250).
How much does stamp duty raise for the government?
The government's annual take from stamp duty is around £12bn, according to the latest figures released by HM Revenue and Customs (HMRC). That's roughly equivalent to 2% of the Treasury's total tax take. The nine-month stamp duty holiday will cost the Treasury an estimated £3.8bn.
Sold - Glebe Road, Ampthill
NEW SALE AGREED
New Instructions Urgently Required
Guide for landlords: electrical safety standards in the private rented sector - Government Published June 2020
1. Introduction
The majority of landlords are proactive when it comes to ensuring the safety of their tenants and make a welcome contribution to the housing market. But a minority fail to do so, putting their tenants in danger as a result.
These new Regulations require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent, at least every 5 years. Landlords have to provide a copy of the electrical safety report to their tenants, and to their local authority if requested.
This means that all landlords now have to do what good landlords already do: make sure the electrical installations in their rented properties are safe.
The Regulations come into force on 1 June 2020 and form part of the Department’s wider work to improve safety in all residential premises and particularly in the private rented sector.
This is a major step towards levelling up the private rented sector, making sure it will offer high-quality, safe and secure housing. Along with our social and owner-occupied sectors, this is housing this country deserves.
This government values the contribution made by good landlords, the majority of whom provide well maintained, safe, secure and high-quality places to live, work and raise families.
Read the Regulations.
Read the Explanatory Memorandum to the Regulations.
2. What do the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 require?
Landlords of privately rented accommodation must:
Ensure national standards for electrical safety are met. These are set out in the 18th edition of the ‘Wiring Regulations’, which are published as British Standard 7671.
Ensure the electrical installations in their rented properties are inspected and tested by a qualified and competent person at least every 5 years.
Obtain a report from the person conducting the inspection and test which gives the results and sets a date for the next inspection and test.
Supply a copy of this report to the existing tenant within 28 days of the inspection and test.
Supply a copy of this report to a new tenant before they occupy the premises.
Supply a copy of this report to any prospective tenant within 28 days of receiving a request for the report.
Supply the local authority with a copy of this report within 7 days of receiving a request for a copy.
Retain a copy of the report to give to the inspector and tester who will undertake the next inspection and test.
Where the report shows that remedial or further investigative work is necessary, complete this work within 28 days or any shorter period if specified as necessary in the report.
Supply written confirmation of the completion of the remedial works from the electrician to the tenant and the local authority within 28 days of completion of the works.
3. Which rented properties do the Electrical Safety Regulations apply to?
The Regulations apply to new tenancies from 1 July 2020 and existing tenancies from 1 April 2021.
If a private tenant has a right to occupy a property as their only or main residence and pays rent, then the Regulations apply. This includes assured shorthold tenancies and licences to occupy.
See guidance on tenancy types.
Exceptions are set out in Schedule 1 of the Regulations and include social housing, lodgers, those on a long lease of 7 years or more, student halls of residence, hostels and refuges, care homes, hospitals and hospices, and other accommodation relating to healthcare provisions.
4. What about Houses in Multiple Occupation (HMOs)?
A house in multiple occupation (HMO) is a property rented out by at least 3 people who are not from one ‘household’ (for example a family) but share facilities like the bathroom and kitchen. If an HMO is a tenant’s only or main residence and they pay rent, then these Regulations apply to the HMO.
The Management of Houses in Multiple Occupation (England) Regulations 2006 previously put specific duties on landlords around electrical safety. This requirement has now been repealed, and HMOs are now covered by the new Electrical Safety Regulations.
HMOs with 5 or more tenants are licensable. The Housing Act 2004 has been amended by these Regulations to require a new mandatory condition in HMO licences ensuring that every electrical installation in the HMO is in proper working order and safe for continued use. See guidance on HMO licences.
5. The inspection
How do I find a ‘qualified and competent person’ to carry out the test?
The Regulations require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent, at least every 5 years.
Guidance has been produced by the electrical safety industry that covers how landlords can choose a qualified and competent inspector and tester. This includes, but is not limited to:
The electrical safety industry has established competent person schemes. Membership of these will not be compulsory to ensure there is no further pressure placed on the industry, nor undue burden placed on inspectors and testers.
When commissioning an inspection, in order to establish if a person is qualified and competent landlords can:
check if the inspector is a member of a competent person scheme; or
require the inspector to sign a checklist certifying their competence, including their experience, whether they have adequate insurance and hold a qualification covering the current version of the Wiring Regulations and the periodic inspection, testing and certification of electrical installations.
What standard should the electrical installation meet?
The standards that should be met are set out in the 18th edition of the Wiring Regulations.
The Regulations state that a landlord must ensure that electrical safety standards are met, and that investigative or remedial work is carried out if the report requires this.
The electrical installation should be safe for continued use. In practice, if the report does not require investigative or remedial work, the landlord will not be required to carry out any further work.
What will be inspected and tested?
The ‘fixed’ electrical parts of the property, like the wiring, the socket-outlets (plug sockets), the light fittings and the consumer unit (or fuse box) will be inspected. This will include permanently connected equipment such as showers and extractors.
What will happen in the inspection?
The inspection will find out if:
any electrical installations are overloaded
there are any potential electric shock risks and fire hazards
there is any defective electrical work
there is a lack of earthing or bonding – these are 2 ways of preventing electrical shocks that are built into electrical installations
What about electrical appliances like cookers, fridges, televisions etc?
The Regulations do not cover electrical appliances, only the fixed electrical installations.
We recommend that landlords regularly carry out portable appliance testing (PAT) on any electrical appliance that they provide and then supply tenants with a record of any electrical inspections carried out as good practice.
Tenants are responsible for making sure that any of their own electrical appliances are safe.
See guidance on portable appliance testing (PAT).
Tenants and landlords may consider registering their own electrical appliances with a product registration scheme.
6. The report
Landlords must obtain a report (usually an Electrical Installation Condition Report or EICR) from the person conducting the inspection and test which explains its outcomes and any investigative or remedial work required.
Landlords must then supply a copy of this report to the tenant within 28 days of the inspection and test, to a new tenant before they occupy the premises, and to any prospective tenant within 28 days of receiving a request for the report.
If a local authority requests it, landlords must supply them with a copy of this report within 7 days of receiving the request.
If the report requires remedial work or further investigation, landlords must provide written confirmation that the work has been carried out to their tenant and to the local authority within 28 days of completing the work.
Landlords must retain a copy of the report to give to the inspector and tester who will undertake the next inspection and test.
What will the report show?
The electrical installation should be safe for continued use. In practice, if the report does not require investigative or remedial work, the landlord will not be required to carry out any further work.
Inspectors will use the following classification codes to indicate where a landlord must undertake remedial work.
Code 1 (C1): Danger present. Risk of injury. The electrical inspector may make any C1 hazards safe before leaving the property.
Code 2 (C2): Potentially dangerous.
Further Investigation (FI): Further investigation required without delay.
Code 3 (C3): Improvement recommended. Further remedial work is not required for the report to be deemed satisfactory.
If codes C1 or C2 are identified in on the report, then remedial work will be required. The report will state the installation is unsatisfactory for continued use.
If an inspector identifies that further investigative work is required (FI), the landlord must also ensure this is carried out.
The C3 classification code does not indicate remedial work is required, but only that improvement is recommended. Landlords don’t have to make the improvement, but it would improve the safety of the installation if they did.
What about new build properties or new electrical installations?
If a property is newly built or has been completely rewired, it should have an Electrical Installation Certificate known as an EIC.
Landlords can provide a copy of the EIC to tenants and, if requested, the local authority. The landlord will then not be required to carry out further checks or provide a report for 5 years after the EIC has been issued, as long as they have complied with their duty or duties under the Regulations.
7. Remedial work
If the report shows that remedial work or further investigation is required, as set out above, landlords must complete this work within 28 days or any shorter period if specified as necessary in the report. Landlords must then provide written confirmation that the work has been carried out to their tenant and to the local authority within 28 days.
What if I don’t do the remedial work?
If a local authority has reasonable grounds to believe that a landlord is in breach of one or more of the duties in the Regulations, they must serve a remedial notice on the landlord requiring remedial action.
Should a landlord not comply with the notice, the local authority may arrange for remedial action to be taken themselves.
The local authority can recover the costs of taking the action from the landlord. The landlord has the right of appeal against a demand for costs.
What if a tenant won’t let me in, or I can’t find an inspector?
A landlord is not in breach of their duty to comply with a remedial notice, if the landlord can show they have taken all reasonable steps to comply.
A landlord could show reasonable steps by keeping copies of all communications they have had with their tenants and with electricians as they tried to arrange the work, including any replies they have had. Landlords may also want to provide other evidence they have that the installation is in a good condition while they attempt to arrange works. This could include the servicing record and previous safety reports.
Urgent remedial action
If the report indicates that urgent remedial action is required, and the landlord has not carried this out within the period specified in the report, the local authority may with the consent of the tenant arrange to carry out remedial work.
The local authority must authorise a qualified and competent person in writing to undertake the remedial action and give at least 48 hours’ notice to the tenant.
The costs for carrying out the remedial work can be recovered from the landlord.
Financial penalties
Local authorities may impose a financial penalty of up to £30,000 on landlords who are in breach of their duties.
Can I appeal against local authorities serving a notice, taking remedial action or a financial penalty?
Yes, landlords can appeal against the decision of a local authority.
In the first instance, landlords have 21 days to make written representations to a local authority against a remedial notice and the intention to impose a financial penalty. The remedial notice is suspended until the local authority considers representations. The local authority must inform the landlord of their decision within 7 days.
Landlords then have a right of appeal to the First-tier Tribunal against:
The decision to take remedial action by the local authority. An appeal must be made within 28 days from the day on which a remedial notice is served.
A demand for the recovery of costs made by the local authority following remedial action.
The decision to take urgent remedial action by the local authority. An appeal must be made within 28 days from the day on which the work started.
A financial penalty.
Appeals are made to the First-tier Tribunal (Property Chamber). See more information on the First-tier Tribunal (Property Chamber).
8. Further questions
What if a tenant won’t let me in, or I can’t find an inspector?
A landlord is not in breach of their duty to comply with a remedial notice, if the landlord can show they have taken all reasonable steps to comply.
A landlord could show reasonable steps by keeping copies of all communications they have had with their tenants and with electricians as they tried to arrange the work, including any replies they have had. Landlords may also want to provide other evidence they have that the installation is in a good condition while they attempt to arrange works. This could include the servicing record and previous safety reports.
If an inspection took place and a satisfactory report was issued before the 18th edition of the Wiring Regulations came into force, but less than 5 years ago, will a landlord always need to have the property inspected again as soon as the Electrical Safety Regulations come into force?
Regulation 3 requires that landlords have the electrical installation inspected and tested at intervals of no longer than every 5 years. Electrical safety standards (the 18th edition of the Wiring Regulations) must be met throughout the period of that tenancy.
The 18th edition of the Wiring Regulations came into effect in 2019, so if a landlord already has a report for a property that was carried out after this date and has complied with all the other requirements of the Regulations, they won’t have to have another inspection for 5 years, provided the report does not state that the next inspection should take place sooner.
Existing installations that have been installed in accordance with earlier editions of the Wiring Regulations may not comply with the 18th edition in every respect. This does not necessarily mean that they are unsafe for continued use or require upgrading.
It is good practice for landlords with existing reports to check these reports and decide whether the electrical installation complies with electrical safety standards. Landlords might also wish to contact the inspector who provided a report to ensure the installation complies with electrical safety standards.
Will all installations have to comply with the 18th edition, even if they were installed before this edition was in force?
The Regulations state that a landlord must ensure that electrical safety standards are met, and that investigative or remedial work is carried out if the report requires this.
The electrical installation should be safe for continued use. In practice, if the report does not require investigative or remedial work, the landlord will not be required to carry out any further work.
Reports can also recommend improvement, in addition to requiring remedial work. If a report only recommends improvement but does not require any further investigative or remedial work to be carried out – indicated with a ‘C3’ classification code – then while it would be good practice to carry out this work, it would not be required to comply with the Regulations.
What about new build properties or new installations?
If a property is newly built or has been completely rewired, it should have an Electrical Installation Certificate known as an EIC.
Landlords can provide a copy of the EIC to tenants and, if requested, the local housing authority. The landlord will then not be required to carry out further checks or provide a report for 5 years after the EIC has been issued, as long as they have complied with their duty or duties under the Regulations.
Which tenancies do the new Regulations apply to?
If a private tenant has a right to occupy a property as their only or main residence and pays rent, then the Regulations apply. This includes assured shorthold tenancies and licences to occupy.
What about where tenancies ‘roll over’ into periodic tenancies? Will that count as a new tenancy?
Whether or not a ‘periodic’ tenancy is a new tenancy, as defined in Regulation 2, depends on the type of tenancy issued.
For ‘contractual periodic tenancies’ – where it is written in the original tenancy agreement that on expiry of the fixed term the tenancy will become periodic – the periodic tenancy will be part of the same tenancy and no new tenancy will be created.
For ‘statutory periodic tenancies’ – where on expiry of the fixed term the tenancy rolls over into a periodic tenancy automatically by statute (rather than by contract) – the periodic tenancy will be a new tenancy.
Properties let on statutory periodic tenancies where the fixed term expires between July 2020 and April 2021 will require an inspection and test at this point under the Regulations.
Long Cottage Virtual Tour
Covid 19 - Property Management
Since the announcement of the property market reopening Orchards have been working with suppliers, and our clients to ensure safe practices are in place for when we reopen on Monday 18th May.
Simple guidance outlined below is being provided to all of our contractors, tenants and property management staff;
Maintenance can resume as normal, with contractors abiding by social distancing guidelines.
Tenants have the opportunity to reject access for works, inspections etc. including those works seen as compliance issues.
Minimum 3 void days to be put in place in between tenancies
All tenancy documentation to be signed online.
Keys for Move ins and Contractors to be cleaned before giving out and once being received back.
Use of an external key safe for contractor collection of keys
Routine inspections to continue via video call.
Tenants will be asked standard questions before works are arranged to determine if they are “at risk” or recently been ill.
Contractors will be asked standard questions before works are arranged to determine if they are “at risk” or recently been ill.
Covid 19 - Office Procedures
Since the announcement of the property market reopening Orchards have been working with suppliers, and our clients to ensure safe practices are in place for when we reopen on Monday 18th May.
Simple guidance outlined below has been provided to all of our staff to ensure the remain safe whilst working.
Wipe down all surfaces each morning and end of day
Taking and recording temperature each morning
Staggered Lunch times
Front Office staff to use the front door as entrance and exit
Middle office staff use middle door as entrance and exit
Client facing and Office based staff to be separated including in common areas.
Different Kitchen and Toilet facilities provided for the Front Office Staff and Middle Office Staff
Maintaining a minimum of 2 metre for anyone entering the office but minimise access by locking the front door.
Bringing in lunch from home which doesn’t require putting in the fridge or the microwave in order to cut down on surfaces touched.
Stay at your assigned workspace (NO HOT DESKING)
Anyone showing any symptoms no matter how minor must stay home.
Covid 19 Valuations
Since the announcement of the property market reopening Orchards have been working with suppliers and our clients to ensure safe practices are in place for when we reopen on Monday 18th May.
Simple guidance outlined below will enable us to ensure all parties remain safe, and valuations are able to recommence.
Vendors have the opportunity to choose between three styles of valuation - 1) Standard Visit to the property - 2) Video Call Valuation or 3) Desktop Valuation
Vendor and Agent to maintain a minimum of 2 metre distance from each other at all times.
All discussions surrounding the valuation etc. ideally to be carried out either in the garden or by phone/video call, otherwise at a minimum 2 metre distance.
Supporting documentation surrounding the valuation to be provided in digital copies rather than hard copy.
The vendors agree to wiping all surfaces down before and after
The vendors are to leave doors, windows open, and lights on
Agent to wear gloves throughout the visit and dispose of them properly, immediately afterwards
Agent to wear masks when indoors
Agent to wash your hands with soap and water (or hand sanitiser if not available) immediately after entering a property.
Vendor advised to wash hands immediately after the valuation has finished