Changes to rent controls announced - discussion

[Millie*]

No, signing a lease is irrelevant.

It’s the establishment of a new tenancy post 1 March 2026 that will trigger the 6-year cycle.

Hi Serenco
Thank you for your reply
But Im totally lost on this.

I have a lease renewal date 15/9/25.

So I thought I was ok to renew this last time and because I am renewing before 1/3/26 and would therefore be able to sell without restrictions in Sept 26.

I appreciate any advise Im just still confused and I want to get this right.
I want to be able to sell without restrictions.

Thank you in advance

 

[Greenbook]

I have a lease renewal date 15/9/25.

There is no such thing as a renewal date anymore (not since 2004 really). No matter what the lease says it is actually an indefinite one. For example, you sign a one year lease with a tenant. You tell the tenant at the end of the year that they have to leave because you are not renewing. That doesn't work (you'd have to compensate them if the case got to the RTB). The legislation overrides what the lease says and makes it an indefinite one which lasts until the tenant leaves or you evict to sell.

There is huge confusion over this and I've seen professional agents who should know better produce one year leases, but this is how it works. There is no 'renewal' on an annual basis. It is an indefinite lease.

 

[Millie*]

Thank you Greenbook and Serenco for putting me straight.
Really appreciated

 

[Persia]

Be careful to get the documentation and notice requirements 100% right - it’s very easy to make a mistake.

Get a solicitor to manage this, the whole procedure is designed to put you in default. Make a mistake and back to square one with a fly in your ear from the RTB.

 

[Dr Strangelove]

Property just came up for rent nearby.

for short-term letting. (Available until September 2025).

There will be plenty like these I predict.

 

[Persia]

Ah unintended consequences, who coulda seen this coming, if only there was some way to use ones grey matter to, I dont know....scenario plan.

 

[landlord]

The status quo will continue for existing tenancies.

Does this also apply to “big” landlords with more than 3 rental properties? Thanks.

 

[Sarenco]

Yep, that’s my understanding.

Again, that’s on the basis of a press release that had to be pulled and re-issued. Keep an eye on the draft legislation once published.

 

[Pmc365]

..

 

[ClubMan]

I feel I can not sell as huge exposure/ crystallisation to Capital Gains Tax upon disposal.

Why? A huge CGT bill implies an even bigger gross capital gain and a presumably significant net gain.

 

[Pmc365]

..

 

[TomEdison]

The CGT is a separate matter. Approx 27% of the asset value would be handed to the state in CGT if I sold.

Unless you have some reason to think that CGT rates are going to fall in the future (or that the value of the property is going to fall), that 27% figure is only going to rise, the longer you hold the property. If the potential CGT liablity is a problem for you, it's a problem that you are more likely to make worse than make better by deferring a sale.

(You may have other reasons for wanting to keep the property, in which case, fine. But a reluctance to accept that the CGT liability will be what it will be is not a good reason.)