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Leading south Wales estate agents continues to help landlords on new regulations

Dawsons is at the forefront of helping to make landlords fully aware of updated regulations brought in under Rent Smart Wales.

Those regulations require all landlords to be registered and licensed, or if landlords are using an agent that they ensure their agent is licensed.

The regulations came into force on November 23rd last year, requiring landlords and agents to comply with the new legislation, licensing those who deal with letting and management activities of properties within the private rented sector.

It is intended that the legislation will result in improved standards of letting, provide more information on landlords for tenant verification, raise awareness by landlords and agents of their respective rights and responsibilities and raise awareness by tenants of their respective rights and responsibilities.

But if your property is managed by Dawsons, you need not worry assured the estate agent’s Lettings Director Ricky Purdy.

“As a market leading letting agent, Dawsons began to prepare for this change in January of 2015,” explained Ricky.

“We have ensured our already knowledgeable and experienced staff have attended the courses required by Rent Smart Wales, and have passed all follow up validation tests successfully.

“This requirement along with several others such as client money protection, and affiliation to a recognised redress scheme, mean that Dawsons will be among the very first licensed agents in Wales.

“As a result of our forward thinking and interaction, our managed landlords can rest assured their requirements, their tenants and of course property remains in safe hands.”

Ricky also assured landlords who manage their own property that Dawsons can help.

 Many self-managing landlords once aware of the requirements by Rent Smart Wales, will decide it the ideal time to approach a local and trusted letting agent for additional information.

“Taking this into account, we at Dawsons have prepared for this very eventuality, to either provide free supporting information and support, or begin the process of property management on their behalf, thus dealing with all of the licensing requirements,” added Ricky.

After the system comes into force the scheme will be policed by local authorities who are responsible for any necessary enforcement action against non-compliance.

These powers will be given to the authorities a year after the system comes into force to give time to those who must comply without fear of prosecution.

Any landlord who has a rental property in Wales which is rented on an assured, assured short hold or regulated tenancy is required to register.

Depending on how a property is owned will determine who needs to register it.  All registrations are done through Rent Smart Wales (rentsmartwales.gov.wales).

Landlords who do undertake letting and management tasks at their rental properties in Wales are required to apply for a licence.  Such landlords are often described as ‘self-managing’, once again license requirements the granting of a license are do through Rent Smart Wales.

For advice, and to discover the many benefits and services of being a Dawsons landlord, please contact one of their five dedicated offices.

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Implications for house buyers of new stamp duty rates

The new stamp duty rates for second homes are due to come into force in April 2016.

This curve ball for property investors means anyone buying a second home or buy-to-let will be hit with a higher rate of stamp duty. The tax grab is designed to help ease the housing shortage, with anyone who buys extra residential property liable to pay an additional 3% in stamp duty after 1st April, 2016.

The new charge applies above the current stamp duty land tax rates, meaning there will be 3% tax to pay on homes worth up to £125,000, 5% tax on homes that cost between £125,001 and £250,000, and 8% on homes worth between £250,001 and £925,000.

Homes worth up to £1.5 million will be subject to 13% stamp duty and those priced above this amount will incur a 15% charge.

It is not all bad news, however. Firstly, for second-home buyers who exchanged contracts before the Chancellor’s Autumn Statement on 25th November, the higher tax rate won’t apply, even if completion is after the 1 April deadline.

The other positive aspect is that as the rules currently stand, investors can offset the additional stamp duty, along with other purchase costs, against capital gains on the property in the future. That could change in future tax amendments though, so be wary.

But for parents wishing to help their children onto the property ladder, the changes do not spell good news. You can still be a guarantor for a loan, but a joint mortgage that requires a parent’s name on the title deed will be hit by the tax, as will couples who want to buy a property each.

Married couples and civil partners will be treated as a single unit that lives together. Any additional property purchased by either person will attract the higher rates.

If you buy a second property you will always have to pay the higher rate of stamp duty, even if you plan to live in it and rent out your old one. If you keep your old home at the time of completion you will need to pay the extra stamp duty charges, even if you move into a new main residence.

The only leeway is that you can get a refund of the stamp duty if you sell your old property within 18 months. This aims to help those who may hit delays in the selling process.  You will need to apply for the refund through HMRC.

What can you do if you want to invest in a buy-to-let or second home without incurring the new taxes? Buy now and complete by 1 April. The danger here is that there may be a rush and the short-term increase in demand could temporarily push up prices, before the increase hits. Keep an eye on the market to make sure that any temporary price increase doesn’t exceed the 3% saving made by buying quickly.

Also be aware that there are other potential tax changes on the way, with the wear-and-tear allowance for landlords of furnished properties being revamped and coming into effect in April, and an earlier deadline for paying capital gains tax on property sales.

For first-time home buyers, it’s hoped that by making buy-to-let less appealing, not to mention lucrative, demand for investment properties will fall, leaving the rungs of the property ladder accessible.

The policy will be outlined at the 2016 Budget on March 16.

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New Private Residential Law For Landlords & Agents

Landlords and agents are now required by law to be registered
or licenced. A new law has been introduced in Wales which applies to all landlords and agents of private residential property. If you own, rent out, manage and/or live in a rented property then this law WILL impact you.

Landlord Registration

Any landlord who has a rental property in Wales which is rented on an assured, assured short-hold or regulated tenancy is required to register. Depending on how a property is owned will determine who needs to register it. All registrations are done with Rent Smart Wales.

Landlord Licensing

Landlords who are not involved in setting up tenancies and
managing their rental properties do not need a licence; however they must use a licensed agent and register as a landlord declaring their agent on the registration. Landlords who do undertake letting and management tasks at their rental properties in Wales are
required to apply for a licence. Such landlords are often described as ‘self-managing’.

If your property is managed by Dawsons, you need NOT worry

As a market leading and engaged letting agent, we as Dawsons
began to prepare for this change in January of 2015. We have
ensured our already knowledgeable and experienced staff have
attended the additional courses required by Rent Smart Wales, and have passed all validation tests successfully. This requirement along with several others such as client money protection, and affiliation to a recognised redress scheme, mean that Dawsons will be amongst the very first licenced agents in Wales.

As a result of our forward thinking and interaction, our managed landlords can rest assured their requirements, their tenants and of course property remains in safe hands. Continued support, means we have also prepared a process to assist our landlords in the only part of this new law we as an agent are unable to do on their behalf.

This requirement of LANDLORD REGISTRATION, can be
completed on line or with the help of our staff at any of our offices. For further information on this, please visit or contact one of our rental offices when a member of staff will delighted to help.
Alternatively, visit rentsmartwales.gov.wales or request a paper
form to completed by calling 03000 133344.

Do you manage your own tenant? Don’t worry, Dawsons can help.

Many self managing landlords once aware of the requirements by Rent Smart Wales, will decide it the ideal time to approach a local and trusted letting agent for additional information. Taking this into account, we at Dawsons have prepared for this very eventuality, to either provide free supporting information and support, or begin the process of property management on their behalf, thus dealing with all of the licensing requirements.

For this advice, and to discover the many benefits and services of being a Dawsons landlord, please visit or call one of our 5 dedicated offices.