The biggest reforms to the Private Rented Sector in decades were proposed this year. In 2025, we'll see them become reality.
2024 has been quite the year for the Private Rented Sector (PRS).
It started with a Conservative Government led by Rishi Sunak and the Renters Reform Bill dominating the headlines. However, as the General Election edged closer, the party backed away from the legislation, leaving stakeholders in limbo.
After Keir Starmer's Labour Government took office in July, they quickly put PRS reform back on the political agenda. Far from calming fears, their Renters' Rights Bill raised existential questions about the sector.
To track the handbrake turns of the last 12 months, we've compiled our top 10 blogs of the year. These speak to just how much has changed and how priorities will evolve in 2025.
Top 10 blogs of 2024: Countdown
In reverse order, here's what you've been reading this year 👇
10 - Your guide to the Rent a Room Scheme
Sneaking into the top 10 is our Rent a Room Scheme guide.
Pre-dating the General Election, the piece covers the opportunity for landlords to earn up to £7,500 a year tax-free by renting out a room.
Although the scheme was initially introduced in 1992, SpareRoom data revealed that there was an almost 90% rise in homeowners taking on lodgers between 2021 to 2024.
As issues with supply and demand persist, this trend may continue into 2025.
9 - Spring Budget 2024: Key takeaways for letting agents and landlords
Coming in at number nine is the Conservatives' final Budget of their 14-year stint in Downing Street.
Chancellor Jeremy Hunt:
- Revealed a Capital Gains Tax cut
- Unveiled tax cuts for holiday homes and multiple dwellings
- Reaffirmed his Government's commitment to building a million homes by the end of parliament
Then Leader of the Opposition, Keir Starmer, called the Budget "the last desperate act of a party that has failed”.
8 - Retaining and returning holding deposits under the Tenant Fees Act
A surprise inclusion in the top 10 is our piece on the The Tenant Fees Act.
Effective from 1 June 2019, the legislation introduced strict rules for retaining and returning holding deposits. Due to this, agents and landlords can only retain deposits if the tenant:
- Fails a right to rent check
- Provides false or misleading information
- Withdraws before the agreement deadline
- Doesn’t take reasonable steps to finalise the tenancy
7 - Periodic tenancies: How agencies can prepare for the Renters' Rights Bill
There can be no doubt that Section 21 dominates the Renters' Rights Bill agenda. But the overnight shift away from assured shorthold tenancies (ASTs) and towards periodic tenancies also has huge implications.
For example, any tenancy you sign now — regardless of length — will default to periodic as soon as the Bill becomes law. This means you'll need to update all of your contracts to comply with the new legislation.
As the popularity of this blog grew by almost 100% in Q4, agencies seem to be recognising the need to make adjustments.
6 - Conservatives vs Labour: Housing plans and proposals
Immediately before the General Election, we looked at the how the main UK political parties approached housing.
Labour's plan to take the Renters Reform Bill further than the Conservatives was one of the key issues here, should they be elected to power.
While this is now playing out, Labour HQ didn't succumb to pressure from high-profile mayors like Sadiq Khan and Andy Burnham to introduce rent controls.
5 - Autumn Budget 2024: Key takeaways for letting agents
Labour's first Budget since 2010 was hotly anticipated, with many PRS experts fearing disaster.
Although the Chancellor, Rachel Reeves, eased anxiety by announcing that there'd be no changes to the rate for Capital Gains Tax (CGT), she raised eyebrows by increasing:
- Stamp duty on second homes
- Employers' National Insurance (NI) contributions.
The latter point leaves agencies with a big whole to fill in their accounts next year.
4 - Section 21: Everything your agency must do before abolition
Although it didn't quite crack the top three, we've seen the popularity of this topic skyrocket towards the end of the year.
The abolition of Section 21 means landlords and agents now have to cite legal grounds for eviction. To do this, you need to serve a Section 8 notice, which requires more admin and precision than a no-fault eviction.
That's because Section 8 notices that include incorrect information or cite inappropriate grounds will be thrown out by the courts. The fact that courts are already experiencing delays before the Renters' Rights Bill becomes law makes matters worse.
However, by investing in technology and providing Rent Protection Insurance, you can prepare your agency and clients for these changes.
3 - How to serve Section 13 notices (quickly and compliantly)
By comparison to last year, we've seen 212% growth from our blog about serving Section 13 notices. That's why it's no surprise it makes the top three.
Following the abolition of ASTs, Section 13 notices will be the only way for landlords and agents to raise the rent. In other words, rent review clauses, renewed fixed-term tenancies, and written agreements will all be things of the past.
Due to these changes, agents need to:
- Automate admin to avoid human error when serving Section 13 notices
- Find a scalable way to keep track of rent review dates, so landlords can raise rents on time
Software platforms like Goodlord can help with this.
2 - Renters Reform Bill: Your complete guide
While the Renters Reform Bill never came to pass, it still earned the silver medal in our blog charts. This comes with a caveat:
Many people in the industry still use the terms "Renters Reform Bill" and "Renters Rights Bill" interchangeably.
Nevertheless, reform dominated the narrative in the PRS in 2024 and will continue to do so in 2025.
1 - Labour's plans for the PRS
As PRS stakeholders accepted the inevitability of a Labour victory at the ballot box, they began scrambling for information about their housing plans.
Our piece explaining Labour's key policies was our most-read blog of 2024. In 2025, we'll see many of these initiatives start to play out.
Labour's house building rates will be under particular scrutiny, as solving the supply and demand issue is seen as crucial to improving outcomes in the sector.
Conclusion
The Renters' Rights Bill is widely expected to become law mid-way through 2025. Although tweaks to the legislation may happen as it passes parliament, you still need to prepare for its impact.
By automating manual processes and ensuring compliance, you can set yourself up for success next year. These are the topics we'll be focusing on to help you along the way.
