Government extends leaseholder protections to buy-to-let investors

8 August 2022

The Government announced that it is extending leaseholder protections to buy-to-let investors to protect landlords with small portfolios from building safety costs.

Buy-to-let landlords were originally excluded from the cladding relief funds, however, it has now been extended to leaseholders who own up to three properties. Landlords will also receive protection from safety costs on their main residence, regardless of how many additional properties they own. Combined, these measures can save landlords thousands of pounds. One landlord even stated he saved £50,000.

The Government’s amendments to the Building Safety Bill also included updated information on the cap on non-cladding-related costs. Previously, the bill stated that landlords would not have to pay for cladding-related costs, but would have to pay up to £10,000 (£15,000 in London) for non-cladding work. The updated guidance states that leaseholders with properties worth up to £175,000 (or £325,000 in London) will now pay nothing towards non-cladding costs.

While these changes are a step in the right direction, some landlords have stated that it’s not enough and that “The Government is basing its decisions on a wholly misleading belief that all private landlords are wealthy property tycoons.”

We will let you know if there are any updates.

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