Members of Goodlord’s leadership team look into their crystal balls ahead of a landmark year in the Private Rented Sector (PRS).
2025 isn’t just a year for the Private Rented Sector (PRS). It’s the year.
With the Renters’ Rights Bill entering the Report Stage in the House of Commons on January 14, many industry experts expect it to become law by Spring.
This will have wide-reaching implications for agents, landlords, and tenants alike.
We asked our leadership team to give their takes on the Bill and what else is in store for 2025.
PRS Predictions 2025
We’ve split our predictions into the following categories:
- Market predictions
- Compliance predictions
- Letting agent predictions
- Landlord predictions
- Tenancy predictions
Market predictions
William reeve, CEO
Firstly:
I expect rental asking prices to rise sharply, as bidding wars are outlawed. The new compliance requirements landlords must meet will also drive costs up for tenants.
I also foresee significant disruption in the student rental market due to the abolition of fixed-term tenancies. As supply decreases, we may see reports of students unable to secure housing or even sleeping rough by the Autumn, unless Parliament makes significant adjustments to the Bill.
Finally, I expect mergers and acquisitions between major market players. Goodlord may play a role in this itself, solidifying its position as the UK’s largest referencing provider and RentTech vendor.
tom Goodman, Managing Director - Vouch
I think 2025 will be characterised by three P’s; pace, policy, and pragmatism.
There’s still a lot of heat in the market and house building won’t come quickly enough to disrupt the upward trajectory around rents and demand any time soon. Both landlords and agents should expect the pace to remain brisk and demand to stay strong throughout 2025.
It will also be a huge year for policy changes. The seismic change will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal shift the sector will face over the coming 12 months.
We’ll likely get further clarity on EPCs and RoPA next year, as well as the introduction of a host of changes around taxation, including the National Insurance rise. Updating business practices to ensure compliance is a must, as is educating your staff about these changes.
Finally, I believe it will be a year of pragmatism. With a market that’s moving so quickly and set to experience a huge regulatory overhaul, agents and landlords will be deploying large doses of pragmatism to get themselves through the upheaval.
As it’s proved before, the sector is incredibly resilient and good at adaptation. This spirit will be required in spades during the coming year.
Compliance predictions
Kerry Aldridge, Director of compliance
When the Renters’ Rights Bill becomes law, I expect compliance to come under sharper focus, with fines for non-compliance likely to increase. Right to rent checks, in particular, will become more important, and agents who don’t meet the standards could face significant challenges.
Technology will be key in helping agents stay on top of these changes.
Automating compliance processes with software can ease the regulatory burden, reduce errors, and allow agents to focus on delivering quality service.
As agents adapt to these new expectations, I think we’ll see an overall improvement in service quality. Agencies will be better equipped to offer a more polished experience for landlords and tenants, helping them stand out in a competitive market.
Letting agent predictions
Oli sherlock, managing director - insurance
While most agencies are thinking about the Renters’ Rights Bill as we usher in 2025, that isn’t necessarily the case for landlords. This means the coming year provides opportunity!
The new legislation brings significant change - including retrospective action and new parameters which arguably will increase risk for landlords.
Because of this, we’re already seeing increased interest in our Rent Protection & Legal Expense policy at Goodlord, and I expect this to continue for the rest of the year. This is because it allows you to:
- Protect your landlords and increase the value you offer to them
- Both justify and increase your management fees
With landlord volumes likely to stutter due to the Renters’ Rights Bill, this type of revenue injection will be more important then ever.
I expect agencies’ priorities will shift towards revenue per let and not just focus on volume of lets this year. Because of this, agents will likely seek out comprehensive products that support them to increase their overall management fee.
At long last, the race to the bottom will be over for agencies, with the new landscape benefitting professional and proactive businesses. On the other hand, those who move slowly will be in for a challenging 12 months. Keep calm and carry on letting!
costas frangeskou, director of growth
The shift from assured shorthold tenancies (ASTs) to periodic tenancies is set to be one of the biggest changes we’ll see from the Renters’ Rights Bill. While much of the attention has been on the end of Section 21, this could have the most lasting impact on the PRS.
Replacing the revenue lost from tenancy renewals will be a key challenge. Charging to serve Section 13 notices is one option, but there’s also an opportunity to upsell existing services to meet the growing compliance demands. Let-only landlords, for instance, might see the value in moving to fully managed services.
As Oli pointed out, offering Rent Protection and Legal Expenses Insurance is another smart move. This gives landlords peace of mind while protecting their income if court delays arise.
Upskilling staff will also play a big role in navigating these changes. Training teams on essentials like serving Section 8 notices will help agencies stay compliant and solidify their position as trusted partners.
The agents who come out ahead in this new landscape won’t just rely on increased stock—they’ll focus on improving profit margins. They’ll do this by boosting conversion rates, offering additional services through third parties, and investing in technology to automate manual tasks, freeing up time to add more value and drive business growth.
Landlord predictions
Emily popple, Director of landlord experience
While some landlords may decide to exit the sector in 2025, those who remain will need to adapt to change.
Agents should be mindful of low awareness among landlords about upcoming legislation, as revealed by the 2024 English Private Landlord Survey. In fact, 25% of landlords stated that they didn’t know about the Renters’ Rights Bill at all. Those who invest in upskilling their teams and demonstrating expertise can appeal to this demographic, potentially converting them into long-term clients.
I predict landlords who approach property management professionally will seize the opportunities the Bill creates. These landlords will likely grow their portfolios with most seeking agents who can help them navigate the opportunities and changing landscape.
Landlords will expect agents to deliver consistent value, and agents must strike a balance between acquiring new clients and ensure a focus on retention. Landlords are already paying substantial management fees are under pressure as margins tighten. Emerging challenges, such as expanded landlord licensing schemes and stricter EPC regulations, will require agents to stay ahead of regulatory changes and ensure their landlords are prepared.
The best agents will take a proactive approach to customer retention, providing supportive, accurate, and personalised outreach. This could be the difference between landlords testing self-management or finding value in a deepened relationship.
Nishma parekh, Director of referencing
With the abolition of Section 21, evictions will become significantly more challenging, leading to a surge in Section 8 notices and a bottleneck in the courts. To keep landlords satisfied in this new landscape, the focus must shift to preventing evictions altogether— and robust reference checks will be central to achieving this.
I also anticipate tenancy fraud becoming more sophisticated. This means agents can no longer rely on “eye tests” to verify documents, and will need the help of technology instead. In our recent Aspen Edition, we announced the upcoming release of our ID Upgrade package, which will help agents stay compliant and avoid costly penalties.
Our Government-accredited technology will also help you show your landlords that you’re securing the best tenants possible.
The increased responsibility for agents on behalf of their landlords doesn’t stop there.
Once optional checks will likely become mandatory, including Anti-Money Laundering (AML) protocols, Politically Exposed Person (PEP) screenings, and sanctions checks.
Embracing technology and upskilling staff are the best ways to prepare your agency for the challenges ahead.
Tenancy predictions
rik smith, director of tenancy services
The introduction of the Renters’ Rights Bill (RRB) is likely to drive a growing tenant appetite for all-bills-included rental packages.
As asking rents rise, tenants will expect more value for money in return. Bundling utilities and other services into the rent could be a smart move for landlords and agents looking to meet this demand and gain a competitive edge.
While periodic tenancies will give tenants greater freedom to leave substandard properties, I don’t expect churn to rise significantly. In most cases, I think tenants will choose to remain in their rented homes, particularly as the scarcity of suitable alternatives could increase.
Conclusion
In 2024, you needed a crystal ball to see what was in store for the PRS. But now the Labour Government has a majority, we more or less know what’s ahead.
That’s why those who anticipate and prepare for the impacts of Renters’ Rights Bill will be well placed to grow their agencies in 2025.
So if you haven’t started placing your bets already, it’s time to start.
