Private Rented Sector in 2024

As the year 2024 draws to a close, it is time to reflect on the accomplishments, challenges, and growth experienced over the past twelve months. This year has been one of significant change and innovation, with organisations adapting to an evolving private rented sector, regulatory landscapes, and the ever-present need for resilience in a competitive environment.

So many property professionals - landlords & letting agents, have demonstrated remarkable foresight, leveraging opportunities for growth while addressing the challenges that inevitably will arise in. 2025. Reflection not only offers an opportunity to celebrate successes but also provides valuable insights for strategic planning and continuous improvement, ensuring a stronger and more prosperous year ahead.

Let’s take a look at 2024:-

1. A Thriving Private Rented Sector

The private rented sector (PRS) in England continued to grow and adapt. With high demand, it remains a crucial part of the housing market, offering flexible options for tenants and valuable opportunities for landlords.

2. The Renters’ Rights Bill: Major Changes Ahead

The Renters’ Rights Bill, introduced into Parliament in July 2024, promises key changes which include:

• the removal of Section 21

• the Decent Homes Standard

• the introduction of Awaab’s Law

• a New Ombudsman Service

• Landlords not being able to refuse tenants based on family status or receipt of benefits.

• the right for tenants to request pets

• new and enhanced Grounds for Section 8

• amendments to section 13(2) and the process relating to rent increases

3. New Rules for Selective Licensing

From the 23rd December 20024, new rules will enable local authorities to introduce a selective licensing scheme “of any size” without sign-off from central government. Previously, local authorities were required to present their business case to the Secretary of State for Housing, However, as part of the changes, the local housing authority must, however, still satisfy all statutory requirements contained in Part 3 of the Housing Act 2004. In addition, local authorities will be expected to consult for a period of at least 10 weeks on the proposed designation.

Before proposing a designation and embarking on a consultation, the local housing authority must identify the problems affecting the area to which the designation will apply and provide evidence to demonstrate the existence of the problems.

4. Leasehold Reform

In 2024, the government confirmed plans to make owning leasehold properties simpler and fairer. Changes will include:

• Ending ground rents for new leasehold properties.

• Making it easier for leaseholders to extend their leases or buy their freeholds. These reforms will benefit both leaseholders and landlords by providing greater transparency and reducing unnecessary costs.

5. The General Election and its Impact - the general election saw not only a change in government but a complete change in the direction the housing market will go in. There is a lot more change to come as we move into 2025.

Proposed Developments for 2025

1.The Most Significant of Changes - the Renters’ Rights Bill

The next key event will take place on Tuesday 14th January 2025 in the House of Commons, both Report stage and the 3rd Reading . When the Bill comes into effect in 2025, it marks a significant step for the PRS. The impact is far reaching and will require planning to ensure that the those affected roll out changes in a measured and practical way to avoid not only non-compliance, but also confusion.

2. Easier Leasehold Management

The government’s intonations to introduce Leasehold reform will continue into 2025, with measures to:

• Simplify the process for leaseholders to extend leases or purchase freeholds.

• Ensure greater transparency and fairness in leasehold arrangements. These changes will help improve trust and reduce conflicts in leasehold property management.

3. Transparent Landlord-Tenant Relationships

• The launch of a National Landlord Register in 2025 will make it easier for tenants to check a landlord’s compliance with regulations. For landlords, this will be an opportunity to show professionalism and commitment to high standards.

5. Redress for Tenants

The Private Rented Sector Ombudsman, expected in 2025, will make resolving disputes simpler and quicker. This new service will help tenants and landlords maintain better relationships, reducing stress and legal costs.

6. Boosting Housing Supply

Following the general election, new policies are expected to focus on increasing the supply of homes for rent. This will include encouraging landlords to invest in new properties and supporting developers in building high-quality rental homes.