The latest landlord legislation – what you need to know
February 26, 2025Some landlords are in the business full-time, making it their livelihood, others may have fallen into the role thanks to an inherited property. But whether you are the former “professional” or latter “accidental” landlord, you both have a common interest in knowing what legislation affects the business of letting a residence for profit.
So, let’s review some of the latest changes to the law relating to let properties – and any that have appeared on the horizon.
The Renters’ Rights Bill
Far and away the most significant legislative change is the Renters’ Rights Bill which is currently making its way through Parliament and is expected to become law sometime this year.
It will introduce sweeping changes that the National Residential Landlords Association (NRLA) has described as some of the biggest in a generation. The intended new protections for tenants include:
- only one rent increase a year to be allowed;
- landlords must publish the rent asked and must refuse any offers to pay more – in a move designed to prevent “rental bidding”;
- the creation of a new private rental sector ombudsman – with powers to compel landlords to fix outstanding maintenance issues or pay compensation for inaction; and
- tenants’ rights to ask a landlord’s permission to keep a pet.
One of the most controversial elements of the Bill, however, is the re-introduction of moves to repeal Section 21 of the 1988 Housing Act – the basis on which landlords can currently effect “no-fault” evictions.
Is your let property energy efficient?
The new government is also reviving efforts to make rented housing more energy-efficient.
An article in the Consumers’ Association’s Which? magazine on the 27th of December noted that plans are afoot to require all homes in the private rented sector to achieve a minimum C-rated Energy Performance Certificate (EPC) by the year 2030.
To meet that target, it is estimated that the energy efficiency of some 340,000 dwellings would need to be upgraded each year until 2030. The costs of those improvements will be met by landlords – although a maximum spending cap is anticipated.
Changes will also be considered to the period of validity of EPCs, how the ratings are calculated, and an extension of the requirements for Houses in Multiple Occupation (HMOs) to have EPCs.
Is your let property licensed?
Since the 23rd of December 2024, local authorities have had wider powers to require let properties in their areas to be licensed.
Before that date, any local authority wanting to increase the proportion of licensed let properties above a certain limit (20% of the local private rented housing stock) needed to secure the permission of the Secretary of State for Housing, Communities and Local Government. That is no longer the case – so, local authorities may be expected to increase the number of let properties requiring a licence.
Are your electrics still registered as safe?
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 require all private sector landlords to arrange a safety inspection by a qualified electrician at least once every five years.
Since this legislation came into force on the 1st of June 2020, the five-year anniversary is now coming around. To maintain your compliance with these regulations, you probably need to arrange a further inspection soon so that your electrical safety certificate remains up to date.
Expect to pay more in Stamp Duty
In November’s Autumn Budget, notice was given of new standard rates of Stamp Duty that will come into effect on the 1st of April 2025 (in England). The result is an overall lowering of tax liability thresholds – and a corresponding increase on the Stamp Duty payable by landlords investing in further let property.
Disclaimer: The information contained in this text is provided for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the legislative updates mentioned, laws and regulations can change at any time. You should consult a qualified legal professional or relevant authorities to obtain advice tailored to your specific circumstances before taking any action based on this content. Neither the author nor the publisher accepts any responsibility for errors, omissions, or changes in the law that may impact your rights or obligations.