Renters Reform Bill: Upcoming Changes to Expect in 2025
Landlords have been on edge since Labour’s election in July, fearing tougher conditions may be on the horizon. This has recently been confirmed as Labour has unveiled major property reforms that will affect both landlords and tenants in the UK.
Within this news update, we summarise the key points for you:
- No-fault evictions eliminated: Perhaps the biggest talking point, which has been on the horizon since the previous government, is the removal of no-fault evictions, designed to make tenants feel more welcome and part of the community where they live.
- Period tenancies: Tenancies will be indefinite with no end date, and landlords will need a valid reason to end them. Amongst valid reasons to evict tenants will be to move in or sell, but not within the first year, and four months’ notice will be required.
- Notice periods: Tenants will need to give landlords two months’ notice to end a tenancy.
- Deposits: The maximum deposit a landlord/agent can require will be no more than one month’s rent.
- Rent increase changes: Rent increases can only happen once a year, and can’t exceed the current market rate. As well as this, bidding wars will be banned, so landlords must publish an asking rent and cannot accept bids above that amount.
- New Landlord Database: A national database listing all landlords and properties will be created, and landlords will be required to register before marketing their properties. Whilst this exists today in some local councils, this will be a new requirement for millions and likely require an annual fee.
- Non-discrimination requirements: Landlords won’t be allowed to discriminate against potential tenants with children or on benefits. Mortgage and insurance terms that include this subject will be unenforceable.
Whilst these changes may force landlords to exit the market completely, we believe they are mostly fair and won’t impact the good landlords amongst us too much.
Here at Novellus we’ll promise to keep up to date with the latest regulations and sector changes, and will ensure your buy to let property remains fully compliant with our fully managed service. Get in touch today to find out more!