2025 is shaping up to be a transformative year for the private rented sector, with the Renters’ Rights Bill anticipated to become law by the summer, according to one industry expert.
This change is expected to bring significant shifts to the market, impacting landlords, agents, and tenants alike. In addition to the Renters’ Rights Bill, other policy changes are also on the horizon, including more defined targets related to energy efficiency.
Ed Miliband has announced that all private rented sector properties will need to meet EPC C standards by 2030. However, despite the ambitious goal, the government has yet to provide clear guidance on how these targets will be met.
As the legislation evolves, tenant reference company Vouch highlights that landlords and agents must begin preparing for these impending challenges. With many changes on the way, staying informed and proactive will be crucial for navigating the shifting landscape.
Pace to remain brisk
Tom Goodman, managing director of Vouch, believes landlords and agents will need to be well-prepared for high demand in 2025.
He states: “I think 2025 will be characterised by three P’s: pace, policy, and pragmatism. There is still a great deal of momentum in the market, and house building won’t accelerate quickly enough to change the upward trend in rents and demand anytime soon. Both landlords and agents should expect the pace to remain swift, and demand to stay strong throughout the year.”
Goodman also points out that 2025 will be a monumental year for policy changes. “The seismic shift will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal change the sector will experience over the next 12 months,” he says.
He predicts that further clarity will be provided regarding EPCs next year, along with the introduction of several changes in taxation, including the National Insurance rise. “There’s a lot on the horizon for agents to manage, both in terms of their obligations to landlords and the running of their own businesses,” Goodman adds.
Year of pragmatism
Mr Goodman adds that, despite the various challenges that landlords and agents will face, he believes the market will remain resilient in the coming year.
He explains that, “2025 will likely be a year of pragmatism.” With the housing market expected to continue evolving rapidly, combined with the impending regulatory changes, it’s crucial for landlords and agents to stay flexible.
The speed at which the market is moving means that both landlords and agents will need to adjust quickly to meet the demands of tenants while also complying with the shifting regulatory landscape.
In particular, with the Renters’ Rights Bill expected to reshape the market and a host of other policy changes looming, the pace of adaptation will be more important than ever.
Mr Goodman continues, saying that, “Agents and landlords will need to deploy large doses of pragmatism to navigate the upheaval.” Given the current market climate, decision-making will need to be both swift and practical.
He points out that, “While the challenges are real, the sector has proven time and again that it’s incredibly resilient.” This ability to bounce back from difficult circumstances will be key to managing the changes that 2025 will bring.
According to Mr Goodman, the ability to adapt will be tested more than ever. “The housing sector has shown an impressive ability to adapt, and this spirit of resilience will be required in spades over the coming year.”
As the market continues to shift, landlords and agents will need to stay informed, proactive, and above all, pragmatic, to ensure they can thrive amidst the coming changes.
Mr Goodman adds that, despite the various challenges that landlords and agents will face, he believes the market will remain resilient in the coming year.
He explains that, “2025 will likely be a year of pragmatism.” With the housing market expected to continue evolving rapidly, combined with the impending regulatory changes, it’s crucial for landlords and agents to stay flexible.
The speed at which the market is moving means that both landlords and agents will need to adjust quickly to meet the demands of tenants while also complying with the shifting regulatory landscape.
In particular, with the Renters’ Rights Bill expected to reshape the market and a host of other policy changes looming, the pace of adaptation will be more important than ever.
Mr Goodman continues, saying that, “Agents and landlords will need to deploy large doses of pragmatism to navigate the upheaval.” Given the current market climate, decision-making will need to be both swift and practical.
He points out that, “While the challenges are real, the sector has proven time and again that it’s incredibly resilient.” This ability to bounce back from difficult circumstances will be key to managing the changes that 2025 will bring.
According to Mr Goodman, the ability to adapt will be tested more than ever. “The housing sector has shown an impressive ability to adapt, and this spirit of resilience will be required in spades over the coming year.”
As the market continues to shift, landlords and agents will need to stay informed, proactive, and above all, pragmatic, to ensure they can thrive amidst the coming changes.
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