As the new financial year starts, landlords in England are becoming more and more concerned about changes in the industry. With new legislation, economic uncertainty, and stricter energy efficiency standards, property owners are needing to overcome a range of challenges that could impact their investments and profitability. Below, we explore the key concerns affecting landlords right now and what they mean for the rental market.

1. THE RENTERS’ RIGHTS BILL AND SECTION 21 EVICTIONS

One of the most significant changes on the horizon is the implementation of the Renters’ Rights Bill, which is expected to take effect later this year. A major aspect of this legislation is the abolition of Section 21 ‘no-fault’ evictions, meaning landlords will no longer be able to remove tenants without providing a specific legal reason, using the new grounds proposed under the bill.

For landlords, this change raises concerns about regaining possession of their properties in cases where tenants fail to pay rent, or cause damage. While the government has promised to strengthen Section 8 eviction procedures to compensate for the loss of Section 21, many landlords worry about delays and bureaucratic hurdles that could leave them unable to swiftly remove problematic tenants. We know the courts are not now being reformed as originally proposed on the basis that government feels they are fit for purpose, despite huge delays already in place.

Furthermore, the Bill introduces open-ended tenancies, making it harder for landlords to plan tenancy agreements around their financial or personal circumstances. Many property owners fear that these measures will reduce their control over their assets and make renting out properties a riskier prospect.

2. ECONOMIC UNCERTAINTY AND TAXATION CONCERNS

Beyond regulatory changes, landlords are also facing economic uncertainty, which directly affects their rental income and long-term financial planning. A recent survey found that 41% of landlords are worried about tenants struggling to pay rent due to the cost-of-living crisis. Rising interest rates and inflation have already put pressure on household budgets, and landlords fear an increase in rent arrears as tenants find it harder to keep up with payments.

On top of this, potential tax increases have added to landlords’ anxieties. The government’s recent Spring Statement hinted at possible increases in capital gains tax and inheritance tax, both of which could impact property investors looking to sell or pass on their assets. If these tax changes come into effect, some landlords may choose to exit the market, leading to a reduction in available rental properties and potentially driving up rents for tenants.

A CHALLENGING YEAR AHEAD FOR LANDLORDS

Landlords in England are facing a perfect storm of regulatory changes and economic pressures. The abolition of Section 21 evictions is set to reshape landlord-tenant dynamics, while economic instability and potential tax increases threaten landlords’ financial security.

With so many challenges ahead, it is vital landlords stay informed. Whether it’s seeking legal advice on tenancy agreements, planning finances carefully, adapting to these changes will be key to maintaining successful rental businesses in 2025 and beyond.

HOW CAN WE HELP?

Boydens are an award-winning Lettings Agency with qualified staff, well placed to provide all landlords with help and support through 2025 to ensure they remain compliant regardless of the changes.

Contact your local branch to secure a FREE 15 minute tenancy health check to ensure that you are compliant and gain some important guidance in how to retain compliance throughout the year.