This blog will discuss the following 4 main things your agency needs to know in February 2023:
1. Debate around who is liable in a rent-to-rent agreement
Following on from the Rakusen v Jepsen case, the Supreme Court is now debating whether both the immediate property owner and superior property owner in a rent-to-rent agreement should be liable in a rent-to-rent agreement. Briefly, the case was based on property under a rent-to-rent agreement that required an HMO licence from the local council, but a licence was not obtained.
You can read more about the case in our previous blog here: https://www.linkedin.com/pulse/rent-to-rent-agreement-liability-property-compliance-ladybirdliving
2. Petition to reinstate finance cost tax relief
A petition has received more than 30,000 signatures to push the government to reconsider finance cost tax relief. As a result of the restrictions on the finance cost tax relief, top-earning property owners would not receive “the most generous tax treatment”. If the petition gains 100,000 signatures, it will be considered in parliament.
3. The rent cap in Scotland has been extended
The rent freeze has been extended for another 6 months. A 3% rent increase limit will be set in most cases. Regarding the social housing sector, the freeze will be lifted with rent increases remaining below inflation.
4. Energy prices may start to decrease in 2023
According to Cornwall Insights, energy prices are predicted to fall by approximately £2,200 in the summer of 2023. As a result, inflation may also begin to decline, and the government would pay less towards the energy price guarantee but cost of living is likely to remain high throughout the year.
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