Upcoming Changes in UK Residential Lettings Legislation: What to Expect in 2025 By Nicola Bremner Director of McCarthy Holden Residential Lettings As the landscape of residential lettings in the UK continues to evolve, 2025 will see significant changes in legislation that will affect landlords, tenants, and the wider rental market,. These changes are aimed at making the rental process more transparent, fair, and sustainable for both parties. In this article, we will explore the key changes that will come into effect in 2025 and how they will shape the future of residential lettings in the UK.
Abolition of Section 21 “No-Fault” Evictions
One of the most significant changes for landlords and tenants will be the abolition of Section 21 notices, commonly referred to as “no-fault” evictions. Section 21 allows landlords to end a tenancy without needing to give a specific reason, provided they follow the correct procedures. In response to growing concerns about tenant security, the Government has committed to removing this option as part of the Renters Reform Bill.The new legislation will require landlords to have a valid reason for ending a tenancy, such as rent arrears or breach of tenancy agreement.This change is designed to provide tenants with greater security of tenure and reduce the risk of arbitrary evictions. For landlords, this means they will need to be more diligent in managing tenancies, ensuring compliance with the terms of the lease and maintaining clear communication with tenants. However, landlords will also gain more certainty and stability in tenancy agreements, as tenants will be less likely to be displaced without good cause.
Introduction of a National Rent Control Scheme
The Renters Reform Bill is also expected to introduce a framework for rent control across the UK, although the specifics are still being finalised. Under this new system, rent increases will be capped and landlords will have to justify any rent hikes beyond a set threshold, which could vary by region or local authority. This is a major Government intervention in the free market, bringing into question just how far should the Government interfere in the economics of allowing the open market to find its own levels.This measure is intended to help address the growing concerns over rising rental costs, particularly in high-demand areas such as London.While proponents argue that rent control will make housing more affordable, critics caution that it could discourage investment in rental properties and lead to a reduction in the supply of available housing.
Changes to the Energy Efficiency Standards for Rental Properties
The UK government is committed to achieving net-zero carbon emissions by 2050, and the residential lettings sector plays a significant role in this ambition.As part of these efforts, new energy efficiency standards are expected to be introduced in 2025, requiring landlords to bring their properties up to a minimum Energy Performance Certificate (EPC) rating of C by 2028.
Continued on following page >
mccartthyhollden..co..uk | 49
Made with FlippingBook - Online catalogs