What homebuyers and renters can expect in 2025

Renting has become challenging. According to the latest data from ONS [1], the average UK rent has increased by 9.1% in the past 12 months, turning what was once an affordable option into a financial strain. And while landlords are responsible for covering maintenance, like fixing repairs, the rental process is often far from stress-free, especially when faced with sudden evictions.

However, a Section 21, or ‘no-fault’ eviction, has previously allowed landlords to ask tenants to leave their homes with two months’ notice, even without reason. For renters in an already competitive market, this has meant stress, upheaval, and higher costs when forced to find new homes at short notice.

But this is about to change. The Renters’ Rights Bill returns to Parliament on 14th January, and it’s set to bring renters some long-overdue protections:

What’s changing for renters in 2025?

• Awaab’s Law for private rentals: Landlords in the private sector will now be held accountable for maintaining safe homes. They’ll be required to address issues like damp and mould promptly, ensuring tenants aren’t left living in unsafe conditions.
• No more ‘no-fault’ evictions: Landlords will no longer be able to evict tenants without a valid reason. This ban on Section 21 notices prevents landlords from using eviction as a way to remove tenants without legitimate grounds, giving renters more security.
• Ending rental bidding wars: New laws will stop landlords and letting agents from encouraging prospective tenants to outbid each other. This will bring more transparency and fairness to the rental market.
• Protection against unfair rent hikes: Tenants will gain the right to challenge sudden or excessive rent increases, ensuring they aren’t unfairly priced out of their homes.
• No discrimination: Landlords will no longer be allowed to discriminate against tenants based on their financial situation or family status, such as those on benefits or with children. This reform expands housing options for vulnerable renters.
• Pets welcome: Tenants will have the right to request pets in their homes, and landlords can only refuse with valid reasons. This measure provides tenants with more freedom and improves their quality of life.

These changes aim to create a fairer, safer, and more secure rental market for tenants across the UK.

Rob Price, Head of Litigation at HCB Solicitors, explains:
"These reforms represent a significant step forward in addressing long-standing inequalities in the rental sector, ensuring greater protection, fairness, and dignity for renters across the UK."

What changes are happening for leaseholders?

There’s welcome news for leaseholders, they will no longer have to wait two years after buying a property to extend the lease or purchase the freehold. This means leaseholders will be able to take control of their home much sooner. 

Stamp duty thresholds - who will this affect?

From 1st April, the stamp duty threshold is dropping from £425,000 to £300,000. This means first-time buyers will pay 5% on anything above £300k, so you might (if you can afford to) want to start looking for your ideal home now, before these changes come into place.

However, it’s not just first-time buyers who will feel the pinch. In October, landlords and second-home buyers will have to pay 5% on additional properties costing between £40,000 and £250,000, making buy-to-let properties more expensive than ever.