With the new year underway, now is the perfect time for landlords to prepare for the wide-ranging legislative changes coming in 2025. From the Renters’ Rights Bill to new energy efficiency targets, the next 12 months are set to reshape the rental sector in significant ways.
Four Key Updates Landlords Need to Know for 2025
1. The Renters’ Rights Bill
The most impactful change for 2025 will be the introduction of the Renters’ Rights Bill, expected to take effect by summer. Key provisions include:
- Abolishing Section 21 notices
- Ending fixed-term tenancies
- Limiting in-tenancy rent increases
- Introducing a new Decent Homes Standard
- Establishing a digital Private Rented Sector database and an ombudsman service
- Banning rental bidding wars and discrimination against families and benefit recipients
- Expanding the use of Rent Repayment Orders
This legislation will require landlords to adapt to a new way of managing their properties. It’s advisable to review tenancy agreements and ensure compliance with these upcoming requirements.
2. New Energy Efficiency Targets
The Government is consulting on changes to the current EPC system, including:
- Reducing the validity period of EPCs (potentially from 10 years to 2 years)
- Adjusting how ratings are calculated
- Expanding the rules to include HMOs
Additionally, tighter minimum energy efficiency standards are under consideration, potentially requiring all PRS properties to achieve a C rating or higher by 2030. While timeframes are still uncertain, landlords should monitor developments closely and explore grant funding options for necessary upgrades.
3. Selective Licensing Changes
As of December 2024, local authorities no longer need Secretary of State approval to introduce local licensing schemes covering more than 20% of the PRS in a borough. This change makes it easier for councils to implement licensing.
Landlords should stay informed about consultations in their area and respond where necessary. If you’re unsure about how these changes might affect you, a letting agent can provide valuable guidance and help ensure compliance. Get in touch with us to find out whether your property needs a licence.
4. Electrical Safety Certificates (EICRs)
Under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, electrical installations must be inspected and tested every five years. If you had an EICR completed when the regulations were introduced in June 2020, it’s time to arrange a new one before demand peaks.
Ensure you act early to secure a qualified electrician and maintain compliance with safety regulations.
Final Thoughts
With 2025 promising some of the most significant changes to the rental sector in recent history, landlords should take proactive steps to prepare. Reviewing compliance, updating documentation, and staying informed about legislative developments will be key to navigating these shifts effectively.
By staying ahead of these changes, landlords can safeguard their investments while ensuring they meet their legal responsibilities. Get in touch with us today to learn how we can help you stay informed and navigate these updates with ease.
Article by Andrew Overman | Partner | Location Location East
