The property industry is warning of a wave of regulatory change that could reshape the housing market with the government preparing to press ahead with the Renters’ Rights Bill while also expanding enforcement powers for sales compliance.
Research from Reapit’s Property Outlook Report 2025 found that almost 60% of estate and letting agents cited regulation as their biggest concern for the year ahead – the highest-ranking issue across both sales and lettings. Many view the changes as the most complex compliance environment in decades.
At the centre of the shift is the Renters’ Rights Bill, due to become law later this year.
The legislation will abolish fixed-term assured shorthold tenancies and Section 21 “no-fault” evictions, introduce more stringent repair obligations and rent challenge rights, and create a new ombudsman for the private rented sector. Penalties for non-compliance will rise significantly.
TIGHTENING EPC RULES
Reapit’s survey found that more than six in ten property professionals were dissatisfied with the draft proposals, first tabled in 2024, with fewer than one in ten expressing support.
Landlords are also preparing for a tightening of energy efficiency rules, which will require all rental properties to achieve a minimum EPC C rating for new tenancies from 2028.
The government has acknowledged industry concerns. In correspondence with Reapit, Matthew Pennycook, minister of state for housing and planning, said steps were being taken to address bailiff shortages and delays in possession proceedings.
These include new recruitment and retention initiatives, clearer guidance, and an automated payment system to speed up debt recovery. A digital possession service is also being developed to accelerate warrant requests and fee submissions.
STREAMLINED SYSTEM
Capacity is being expanded at the First-tier Tribunal to cope with a likely increase in rent-related disputes, with powers introduced to backdate rent increases after determinations.
Ministers are also considering a streamlined system for initial rent assessments to reduce pressure on the tribunal system.
A national communications campaign is planned to raise awareness of the reforms among landlords, tenants and agents.
On the sales side, 48% of respondents said sellers lacked awareness of disclosure requirements. Since April, the Competition and Markets Authority has had new powers under the Digital Markets, Competition and Consumers Act to fine agents directly for non-disclosure, with penalties of up to £300,000 or 10 per cent of global turnover.
MORE COMPLIANCE
Analysts say the changes will increase upfront compliance work but may also improve market efficiency by reducing failed transactions and unsuitable enquiries.
Still, with multiple reforms arriving in quick succession, agents warn the compliance burden will be significant, particularly for smaller firms without dedicated legal and administrative support.
Dr Neil Cobbold, Commercial Director at Reapit UKI, says that the way agents approach new regulations is critical: “It’s understandable agents are concerned about upcoming regulation, change is on the horizon and for the lettings sector it’s the biggest in 30 years.
“But agents don’t need to go it alone. At Reapit we’re working not only to adapt our tech to help agents manage these changes to the sector, but also constantly talking to the government, MPs and civil servants to share the concerns of agents everywhere.
“Agencies that act early to understand their new obligations and invest in tools that support compliance will be best positioned to ride the coming wave of reform.”
