3% levy on second homes

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Well, I was feeling slightly smug for a few weeks about Scotland not being affected by the 3% surcharge for buying a second home that was announced in the Autumn Statement, but despite the SNP’s avowed loathing of Westminster, they’ve not hesitated in going, ‘Oh, that’s a good idea,’ and doing exactly the same for LBTT (Land and Building Transactions Tax, our version of stamp duty).

Scottish Budget: New 3% levy for buying second homes

I’m really not sure what the recent flurry of legislation affecting landlords is supposed to do, other than reduce the amount of rental stock, thus pushing rents up.  Anyway, if my purchase looks like it’s going to get anywhere close to not completing by the date this comes in (unlikely, but then I thought I’d be six weeks into renovations by now!), I shall be strongly suggesting that the seller pays it.

Tax changes for residential landlords

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My lovely accountants, the Long Partnership, have started their own YouTube channel and this week’s soundbite is about the tax changes for residential landlords.  Much food for thought and well worth two and a half minutes of your time.  I’m wondering if I should stick to holiday cottages rather than going into buy-to-let, as they’re not affected by the changes and there’s a wonderful local cleaning company who can do the changeovers for me.

Rental reforms in Scotland

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An interesting entry on PropertyHawk’s blog this morning about changes to the private rented sector tenancy system in Scotland.  Full details of what the Scottish Parliament is proposing can be found here, but in summary:

  • No more ‘no-fault’ repossessions, i.e. you can’t simply ask a tenant to leave because their tenancy has ended.
  • Tenancies will not roll over.  At the moment, when a Short Assured Tenancy expires, the tenancy simply continues on a month-to-month basis if a new one isn’t signed.
  • Notice to Quit will be 4 weeks if the tenant has been in the property fewer than six months, 12 weeks if more than six months (changed from 28-40 days currently).  Notice to Quit on the tenant’s side is also 4 weeks up to six months, but only 8 weeks for longer.

They’re also planning to introduce a model tenancy agreement.

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Rents up here aren’t hugely expensive, but one thing that snuck into Nicola Sturgeon’s speech on this yesterday that will probably send a shiver down the spine of landlords further south in Scotland was:  “I can also announce today that the Bill will include provisions for rent controls in rent pressure areas.”

It’ll be interesting to see what the eventual legislation looks like and how it affects the rental market across the country.