25th April 2025

All change! A landlord’s guide to the new rules turning renting on its head

Landlords are facing a raft of legislation change, with comprehensive set of new rules to turn the private rented sector on its head. The Renters’ Rights Bill, currently making its way through Parliament will bring with it the biggest shift in a generation; with proposals for a new Minimum Energy Efficiency Standard (MEES) also keeping landlords up at night.

The latter will see landlords forced to pull homes with EPC ratings of D-G out of the rental market unless they can comply with stringent new targets by as early as 2028. The Renters’ Rights Bill will see Section 21 repossessions – so-called ‘no fault evictions’ abolished, along with fixed term tenancies.

New possession grounds will be introduced, with tenants allowed to build up more arrears before landlords can take action, along with limits to rent increases and changes to rules around standards and enforcement.

Against a backdrop of challenging economic conditions, these changes are set to place yet more pressure on landlords across the board, at a time when demand remains high – with 12 households now competing for each property advertised for rent.

SDL Property Auctions partners with the National Residential Landlords Association (NRLA), the UK’s largest body for landlords, to help our customers navigate life as a landlord and in this blog Ben Beadle, Chief Executive at the NRLA explains the latest rental changes that property owners are facing.

So, what does this mean for landlords?
Rental reform was first mooted by Prime Minister Theresa May back in 2019 to address the ‘imbalance’ between tenants and landlords and to improve standards.

The abolition of section 21 – the story which has stolen all the headlines – was a key pillar of this from the start and will mean that, once the legislation has been given Royal Assent, landlords will need to meet certain requirements to get their properties back from tenants. These will apply if, for example, they want to sell the property, or a family member to move in.

The fixed term will be no more, with tenants able to give two months’ notice at any time to end the tenancy.

Landlords will also need to sign up to a new landlord database – with a new decent homes standard introduced for privately rented homes for the first time.

Costly improvements on the cards?
While plans for a new Minimum Energy Efficiency Standard are still at the consultation stage, if you have homes which fall below EPC C, the consequences could be costly, with the proposals as they stand requiring landlords to spend up to £15,000 per property to bring homes up to the new standard.

With older, solid wall properties – the most challenging to retrofit – disproportionately represented in the PRS, the implications are huge for landlords, with an estimated 2.5million properties across England falling below a C grade.

What impact will these changes have on the market?
Our fear is that for many landlords these new regulatory burdens will prove to be the straw that breaks the camel’s back.

Landlords have already started to leave the market due to a combination of tax changes, the high cost of borrowing and regulatory change – and the numbers are only going one way.

Don’t get me wrong, not all the changes are bad.

We all want to see the minority of rogue landlords driven from the sector and for tenants to live in homes that are as energy efficient as possible.

However, at a time of housing crisis we have serious concerns about the unintended consequences of such widespread regulatory change on the supply of homes to let.

For some time now our research has shown landlords are becoming more cautious, with the number of landlords selling and planning to sell homes hitting record highs in recent months, and record lows recorded when it comes to those looking to invest.

What do the figures say?
Our latest figures show that 46% of landlords plan to sell some of their rentals in the next 12 months, with just 8% planning to buy.

You don’t need to be a maths whiz to work out this could have a potentially devastating impact on supply of homes to let, an imbalance which can only be expected to force rents even higher.

Property portal Zoopla in its latest rental market report agrees ‘rental reforms and other proposed policy changes’ will not only limit new investment and supply growth, but increase UK rents by up to 4% through 2025.

Indeed, it is likely to become even tougher for those on middle to lower incomes to find homes to rent, as landlords become more cautious when it comes to tenant selection as a result of the regulatory changes.

We can already see evidence that rents are rising at an above average rate in areas where renting is currently more affordable, including areas close big cities, with Zoopla figures showing rents are rising fastest in northern towns including Blackburn (10%), Stoke (9.6%) and Rochdale (9.3%).

In short this means tenants, the very people this legislation has been designed to support, are those most likely to lose out – with those of limited means the worst affected.

What is the picture like across the country?
Our own research shows that confidence levels also differ also widely across England and Wales.

Housing legislation is devolved in Wales, where the Renting Homes (Wales) Act has already introduced widespread change. This could go some way to explaining why Welsh landlords are currently rated the most confident.

Among the least confident are those in all areas of London where, while rents are high, rental inflation is the lowest in the country at just 1.1% over the last 12 months.

I’m a landlord what can I do to prepare for the changes up ahead?
We know that change is coming, and it is important landlords are on the front foot when it comes to being prepared.

Here at the NRLA our policy team is working hard behind the scenes to ensure the new legislation is fair, lobbying government for adjustments that will make it workable for landlords as well as tenants.

We are also prepping all the relevant documentation to ensure you have all the necessary resources at your fingertips when the new reforms come in – as well as offering a new Renters’ Rights training course giving you all the information you will need as to what lies ahead.

While the Renters’ Rights Bill is still making its way through the House of Lords, the NRLA has also put together an exclusive guide for members, explaining ways in which you can prepare for the changes we already know will be happening, ahead of time.

This includes everything from reviewing your portfolio, to inspecting properties and updating processes around referencing, advertising and logging complaints.

We are also campaigning for a comprehensive funding package for landlords when it comes to the new energy efficiency regulations.

There is no doubt that 2025 will be a challenging time, but we landlords are a resilient bunch and members of the NRLA can be assured they will not be facing these challenges alone.

While the Renters’ Rights Act will undoubtedly affect the way we run our businesses, the demand for homes is still high – and with this demand comes opportunity.

We need to adapt and evolve to the new way of working, while continuing to respond to the Government as it hones its energy efficiency plans, stressing the need to encourage growth if the sector is to continue to house the millions of people who are looking to it for a home.

Find out more
For expert advice, vital documents and guides, along with exclusive discounts and deals, join the 110,000 landlords who are already members of the NRLA today. Click here to sign up.