Renters’ Rights Bill will reshape the rental market next year

2025 looks set to be a seismic year for the private rented sector, with the Renters’ Rights Bill expected to become law by summer, one firm says.

Other policy changes include more clarity on energy-efficiency targets.

While Ed Miliband has announced that all private rented sector properties must meet EPC C targets by 2030, the government has provided little detail on how this will be achieved.

Tenant reference company Vouch says landlords and agents need to prepare for the challenges ahead.

Pace to remain brisk

Tom Goodman, managing director of Vouch, says landlords and agents will need to prepare for high demand next year.

He said: “I think 2025 will be characterised by three P’s; pace, policy and pragmatism.

“There is still a lot of heat in the market and house building won’t come quickly enough to disrupt the upward trajectory around rents and demand any time soon. Both landlords and agents should expect the pace to remain brisk and demand to stay strong throughout 2025.

“It will also be a huge year for policy changes. The seismic change will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal shift the sector will face over the coming 12 months.

“It’s likely that we’ll get further clarity on EPCs next year, as well as the introduction of a host of changes around taxation, including the National Insurance rise. To that end, there will be a lot for agents to contend with, both on behalf of landlords and for their own businesses.”

Year of pragmatism

Mr Goodman adds, that despite the challenges landlords and agents face, the market should remain resilient.

He said: “I believe it will be a year of pragmatism.

“With a market that’s moving so quickly and set to experience a huge regulatory overhaul, agents and landlords will be deploying large doses of pragmatism to get themselves through the upheaval. As it’s proved before, the sector is incredibly resilient and good at adaptation. This spirit will be required in spades during the coming year.”

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