Landlord Newsletter
The Renters' Rights Bill is expected to pass Royal Assent and become law by the end of Spring this year. The commencement date of the Bill will likely be more than two months after this, meaning it is expected to be a working reality between July-September 2025.
Earlier this month, the Bill passed its second reading in the House of Lords, where potential issues and amendments were discussed. However, given the Government's majority in the Commons, major changes aren't expected, so it's worth familiarising yourself with the Bill now.
At Crown Accommodation Services Limited (Crown Rentals), we'll keep you abreast of all the key developments and help to set you up for success in the new landscape.
Below, we'll fill you in on everything that was discussed in the Lords, while checking in with the current state of the rental market and how to strategically improve your EPC ratings.
All the best,
The Crown Accommodation Services Limited (Crown Rentals) team
Rental market performance in January 2025
Here’s what changed in the English rental market last month:
- The average monthly price for a rental property rose 2%, from £1,185 in December to £1,207 in January
- January's average rent of £1,207 is up by 4.6% compared to 2024 figures (£1,154)
- Average void duration was the highest since April 2021 at 24 days
Longer void periods in particular point to a softening of demand in the market.
Renters' Rights Bill second reading in House of Lords is complete
On February 4, the Renters' Rights Bill was scrutinised again in the Lords in the second reading. Peers debated the Bill's key principles and flagged up concerns and specific areas where they felt amendments were needed. Here are five thought-provoking talking points from the debate:
- Baroness Taylor, of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government), Labour, said that "private purpose-built student accommodation will be removed from the Assured Tenancy System", while other Peers suggested that any exemptions for student tenancies should extend to landlords renting one and two-bedroom flats to students
- Concerns about significant court delays following the abolition of Section 21 remain, despite reassurance from Baroness Taylor that the Government is working with the Ministry of Justice to ensure that it's prepared for the Bill's impact
- As bidding laws will be outlawed, asking rents will likely increase, and accepting offers under those prices may become more common
- Self-employed, international, and other marginal renting groups are likely to suffer from the banning of up-front rent payments
- Although pets in lets were welcomed by many Peers because of their mental health benefits, the fact that there's no comprehensive pet damage insurance policy could leave landlords at risk
The committee stage will follow the second reading in mid-to-late February, where detailed line by line examination and discussion of amendments takes place. If you haven't thought about the Renters' Rights Bill yet, or you have any questions, please reach out to the Crown Accommodation Services Limited (Crown Rentals) team.
How to approach EPC upgrades strategically
If you're planning any major energy efficiency improvements to your properties in the near future, you may need to think again.
That's because potential changes to the ratings system are expected to come into effect in 2026. In other words, while fitting a condensing gas boiler could now take you from a middling E rating to a low C rating, that may not be the case in a year or so.
According to Chris Norris, Director of Policy & Campaigns at the NRLA, you're better off focusing on small, incremental improvements, like improving the insulation of your properties, until there's further clarity.
