Life as a landlord has always involved keeping on top of legal obligations to ensure compliance, avoid fines and prosecution and minimise the risk of tenant disputes. But with new regulations coming in for 2025 and beyond, understanding exactly what new legal responsibilities you will face is vital, especially since responsibilities and rights are changing so dramatically.
The Renters’ Rights Bill
The biggest changes will come once the Renters’ Rights Bill comes into effect. The timescale for this still isn’t confirmed. Some believe it will be in place by the end of this year, but next year may be more likely. In its current form, the bill includes a number of significant changes which landlords must comply with.
These include the end of Section 21 no-fault evictions and revised grounds for possession. There will be an end to fixed-term tenancies and a move to periodic tenancies as the norm. The practice of rental bidding will also be banned, with rent rises restricted to once a year. Tenant discrimination for those with children, pets or on benefits will also not be allowed. These are just a few of the changes due to come into force.
New rules around EPC
Earlier this year, the government concluded a consultation on changes to the Energy Performance Certificate system which would see shorter validity periods and a new way of calculating the EPC, among other amendments. Yet, according to a recent poll of 1,000 landlords by The Mortgage Works, nearly two-thirds (62%) aren’t even aware that an EPC is a legal requirement.
Energy efficiency regulations upgrade
By 2030, landlords will have to upgrade their properties to an EPC rating of C, rather than the current E rating threshold. This will require work and investment to bring properties up to standard, which will be required to meet the new legislation as well as to attract tenants. The same survey showed that nearly three-quarters (73%) of landlords didn’t know when the new regulations come into force.
Additional licensing schemes
Since December 2024, local authorities have no longer required approval from the Secretary of State to introduce licensing schemes. The result is that many more local councils are expected to introduce such schemes. Landlords will need to keep on top of compliance in the areas where they own properties and monitor local authority updates for changes to their responsibilities.
Changes to consumer protection laws
Earlier this year, the Digital Markets, Competition and Consumers Act came into force. April saw new enforcement powers for the Competition and Markets Authority (CMA) as a result. The legislation changes include updated rules that cover unfair commercial practices. For landlords, this places additional emphasis on disclosing key information that could influence a tenant’s decision to rent. Landlords must ensure that all relevant information is transparent to their letting agents or their tenant if letting directly.
New AML rules
New anti-money laundering rules also mean that financial sanctions checks are now required for all lettings. Previously, the legislation only applied to high-value properties and to letting agents rather than landlords as well.
Who’s responsible?
With some of these changes still to be confirmed, as well as the costly impact of non-compliance, it’s no surprise that keeping on top of legislative changes can feel overwhelming. Penalties and fines have also increased.
Meanwhile, the penalties and fines faced are also more significant. Under the Renters Rights Bill changes for instance, landlords face initial civil penalties of up to £7,000 while repeated or persistent non-compliance could mean a civil penalty of up to £40,000 or criminal prosecution. To ensure that you don’t get caught out, you may want to consider using a letting agent to manage compliance on your behalf.