Review of Recent Regulatory Changes and Expectations for 2025

Happy New Year!

As we prepare for major changes set to reshape the property market in 2025, let’s first take a look back at the key moments of 2024. From soaring Right to Rent fines to Labour’s sweeping reforms, here’s a quick recap of last year and what’s coming next. 

Right to Rent Fines Soar

The Government increased fines for Right to Rent violations. First time offenders faced fines jumping from £80 per lodger and £1,000 per Tenant to £5,000 and £10,000 respectively. The rates for landlords with repeat breaches doubled those amounts. 

Landlords and Agents should be vigilant when undertaking checks. Please see the Residential Tenancy Compliance Documents for guidance and checklists. 

Collaboration in Complaint Handling for Social Housing

The Housing Ombudsman and Local Government and Social Care Ombudsman (LGSCO) joined forces and launched a joint complaint handling code to improve transparency and dispute resolution in social housing. 

Charities Act 2022 Updates

Remaining changes to the Charities Act 2022 came into force. Please see Lease and Other Property Documents (Charities).

Grenfell Inquiry and HMO crackdowns

The long awaited Grenfell Inquiry report criticised the Government for neglecting construction regulations, prompting promises of reform.

HMO rules were tightened, selective licensing schemes increased, and landlords faced steep fines for non-compliance. 

Election Drama and Labour's Vision for the Private Rented Sector

A snap election saw a new Labour Government take charge and pledge an overhaul of the Private Renter Sector with the newly named Renters' Rights Bill which proposes:

• Removal of fixed term tenancies and Section 21 evictions.
• Extending Awaab’s Law and the Decent Homes Standard into the private rented sector.
• Ending bidding wars and automatic refusals to requests for keeping a pet.
• Capping rent increases and discrimination against benefits recipients and families.

There were some surprises in the Autumn budget, with Labour announcing:

• An increase in Stamp Duty Land Tax on second homes and buy-to-lets from 3% to 5% (7% surcharge for non-domiciles).
• CGT rates increased to 18% for basic rate taxpayers, and 24% for higher rate taxpayers. 
• Business Asset Disposal Relief for CGT was increased to 14% from April 2025. This will be further increases to 18% from April 2026. 
• Agricultural and Business Property Relief change.
• Higher HMRC late payment interest rates.

Changes to Welsh Land Transaction Tax

The Welsh Government announced a 1% increase in all bands for landlords, sparking a backlash from landlords. Full details of the proposed changes can be found here  - Welsh Government draft Budget changes to Land Transaction Tax and Landfill Disposals Tax | GOV.WALES

Looking Ahead to 2025

The Renters' Rights Bill is expected to take effect in Summer 2025, bringing significant changes that will reshape the private rented sector. To support landlords and agents in navigating these updates, the Property documents will be reviewed and updated as new details emerge.

Please look out for detailed guides, checklists and compliance tools to help you stay prepared for the upcoming regulations. 

As well as updating the Property documents as changes come into force, new documents will be introduced as and when they are necessary.