There have been quite a few changes enacted or announced of late that will effect property investing as we push to open back up. The most notable changes from May 2021 in the world of property investing are as follows.
Changes to Eviction Notice Timelines
Queen Announces The End Of Ground Rents for New Leasehold Properties
“Laws [to modernise the planning system]…will be brought forward, along with measures to end the practice of ground rents for new leasehold properties. Escalating ground rents on leasehold homes have left many owners trapped; our 2018 ‘Leasehold: a Life Sentence’ research found that 46% of leasehold house owners weren’t aware of the increasing ground rent when they bought their home. This legislation will go a long way to help thousands of homeowners, but it also needs to be extended to those who already own a leasehold property as well as all retirement properties.”
If this is passed into law, it will mark the end of the practice of ground rents which has been around since Roman times. There is a risk for the property investor that the steady rent stream from these types of investments may dry up in the coming years. Our team will continue to monitor this as it progresses as the Queen did indicate that there could be exceptions.
While we’re not sure exactly how this will play out, here at ICaN we are confident that good things are on the way.
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