Rental Reform Bill: What Letting Agents Need to Know in 2025

The Rental Reform Bill represents one of the most significant changes to the private rental sector in decades. Letting agents need to understand these changes to advise landlords properly and ensure compliance.

Key Changes in the Rental Reform Bill

The bill introduces several major changes that will affect how letting agents operate:

• Abolition of Section 21 "no-fault" evictions - Landlords will no longer be able to evict tenants without providing a reason.
• Strengthened grounds for possession - New grounds will be introduced for landlords who genuinely need to sell or move into the property.
• Periodic tenancies as standard - All tenancies will automatically become periodic after any fixed term ends.
• Rent review clauses limited - Rent increases will be limited to once per year, with longer notice periods.
• Pet ownership rights - Landlords will not be able to unreasonably refuse pets, though they can require insurance.

"This legislation represents the biggest shake-up of the private rental sector in a generation. Agents who prepare now will have a significant advantage when these changes come into effect."

— Housing Minister, Department for Levelling Up, Housing and Communities

What Letting Agents Should Do Now

While the bill is still progressing through Parliament, letting agents should start preparing:

1. Review all current tenancy agreements and processes
2. Communicate with landlords about the upcoming changes
3. Update your systems to handle the new requirements
4. Train staff on the new legislation
5. Consider how your fee structure might need to adapt

Potential Impacts on the Market

The changes could have several effects on the rental market:

Some landlords may decide to exit the market, potentially reducing available rental stock. Agents should be prepared to advise landlords who are considering selling their properties.

There may be increased demand for property management services as landlords seek professional help to navigate the new regulatory landscape.

Letting agents who can demonstrate expertise in the new legislation will have a competitive advantage in attracting both landlords and tenants.

Conclusion

The Rental Reform Bill represents both challenges and opportunities for letting agents. Those who prepare thoroughly and position themselves as experts in the new system will be best placed to thrive in the changing landscape.

Stay tuned for further updates as the bill progresses through Parliament and more details become available.