This week we’re diving into the sweeping changes facing UK landlords as the Renters’ Rights Bill becomes closer to becoming law.
With the Labour government pushing for tenant-friendly reforms, the balance of power in the rental market is shifting – and not necessarily in landlords’ favour.
Let’s unpack what’s coming, why it’s controversial, and what landlords can do to stay ahead of the curve.
Abolishing Section 21 and Assured Shorthold Tenancies
A key change in the bill is the scrapping of Assured Shorthold Tenancies, originally introduced by Margaret Thatcher to give landlords more control over their properties. These agreements allowed landlords to reclaim their properties with just two months’ notice, commonly known as a Section 21 eviction, which forms part of the Housing Act 1988.
Once this becomes law, landlords will be forced to rely on Section 8 notices instead—used mostly for serious cases like substantial rent arrears. But Section 8 can mean long court delays and hefty legal fees, discouraging landlords from pursuing even justified evictions.
As the Head of the British Landlord Association put it, “The promise that you’ll get your property back has been broken.” For many landlords, that’s a deal-breaker.
What’s in the Renters’ Rights Bill 2025?
The Renters’ Rights Bill is expected to become law in July 2025 after making its way through Parliament and the Lords. Let’s look at some of the key changes the bill brings in 2025:
- Extended Notice Periods: Landlords will need to give three months’ notice instead of two. Critics call this “an extra month of free rent for non-paying tenants.”
- Longer Grace Periods for Arrears: Tenants can fall behind by three months before facing eviction proceedings, and then get another four weeks’ notice before being required to leave.
- Limits on Advance Rent: Landlords can no longer charge more than one month’s rent in advance—a move intended to prevent discrimination but one that limits landlord flexibility.
- Section 8 Eviction as Standard: Section 21 is out, and landlords must use Section 8 for evictions, even in cases that aren’t due to rent arrears.
A Savills survey found that 58% of landlords see these reforms as a significant concern.
The Awaab’s Law Expansion
Originally designed for the social housing sector, Awaab’s Law will apply to the private sector from October 2025. This law was brought in by former Conservative Housing Minister, Michael Gove, after 2-year-old Awaab Ishek tragically died from respiratory illness as a result of living in social housing that was rife with damp and mould. It currently obliges social housing landlords to investigate and resolve health and safety concerns within strict timeframes:
- 14 days to investigate housing disrepair
- 7 additional days to resolve the issue
Failure to comply could cost landlords up to £7,000 in fines or even lead to a ban on renting. While this ensures better living conditions, the administrative and financial burden on landlords is considerable—especially for those managing properties from abroad.
New Energy Performance Certificate (EPC) targets
Labour has revived the plan for all rental properties to meet an EPC rating of C by 2030. This would be an increase from the current EPC rating of E for properties in England. Unlike the previous Conservative proposal, there’s no cap yet on what landlords may have to spend to meet this.
This raises real concerns:
- A £10,000 upgrade on a million-pound flat in London may be manageable.
- But for a century-old terrace in the North, it could be prohibitive—possibly equalling the property’s entire value.
A key problem? Even local councils can’t clearly tell landlords what’s required to hit the EPC target. And with a shortage of qualified surveyors, implementation looks rocky at best.
The Bigger Picture: Higher Rents, Fewer Homes
All of this is likely to reduce available rental stock. If landlords exit the market, tenants will have fewer choices and rents will inevitably rise.
Savills’ Director of Research notes that higher EPC standards will limit supply and drive up rental prices. It’s basic economics: less supply, same demand, higher cost.
What About Scotland and Wales?
Scotland and Wales have already implemented similar policies—with mixed results:
- Scotland banned no-fault evictions in 2017 and imposed rent controls in 2022. Yet, average rents rose over 20%, as landlords simply increased prices between tenants.
- Wales raised stamp duty surcharges for second homes and clamped down on empty properties with council tax hikes.
The result? Many landlords are leaving the market, and the few who stay are charging higher rents to compensate for increased risk and regulation.
Is It All Bad News? Not Necessarily.
Despite the doom and gloom, there are still opportunities for smart property investors.
Just this week at APW, three high-spec flats were completed, listed, and snapped up by professionals from HSBC, Deutsche Bank, and PwC… all within just three weeks.
Why? Because the landlords invested in:
- New or refurbished properties with high EPC ratings
- Prime locations with growing infrastructure, jobs, and population
- Corporate-friendly housing targeting professional tenants—not families
These are properties that attract reliable renters, are energy efficient, and require minimal maintenance—ideal for landlords living abroad.
How should landlords respond?
It’s true that the upcoming Renters’ Rights Bill and wider legislative changes across the UK are making it tougher for landlords, especially those with outdated or lower-quality properties. The lesson here is not to panic with the new policies, but to adapt.
Focus on:
- Modern, high-efficiency properties
- Locations with strong demand
- Long-term tenant quality over short-term gain
If you’re an expat or passive investor, invest in low-hassle, high-quality assets and let the rest of the market play catch-up.
Got Questions?
If you want help navigating the UK property market under these new rules, be sure to grab our Expat Property Playbook for the 10 essential steps to building a £10,000/month portfolio.
You can also reach out to us directly through our contact form if you’re interested in speaking to one of our experts about property investment opportunities.
Let’s stay ahead of the curve.