Big changes are set to reshape the UK property market in 2025, affecting millions of homeowners and renters nationwide. These reforms aim to improve fairness and security within the

housing sector and will introduce significant adjustments to renting rules, leasehold arrangements, and taxation policies. Here's a detailed breakdown of the upcoming changes and what they mean for you.

Renters' Rights Bill: protecting tenants

The Renters' Rights Bill, hailed as the most significant overhaul of tenancy laws in decades, is poised to enhance security and fairness for the 11 million private renters and 2.3 million landlords in England. Key provisions include:

Abolishing No-Fault Evictions: Section 21 evictions, which allow landlords to evict tenants without a reason, will be removed. Tenants will have eviction protection during the first 12 months of their tenancy, as long as they adhere to the agreement. After this period, landlords must provide a valid reason—such as selling the property—and give four months' notice.

Restricting Rent Increases: Landlords will be limited to one rent increase per year, aligned with the market rate. Tenants can challenge excessive rent hikes at the First-tier Tribunal.

Ending Bidding Wars: Landlords and letting agents will no longer be allowed to pit renters against each other in bidding wars. Instead, they must publish a fixed asking rent.

Pet-Friendly Policies: Landlords will be required to reasonably consider tenant requests for pets. They may mandate pet insurance to cover potential damages.

Leasehold and freehold reforms

The government is taking steps to eliminate the “feudal” leasehold system, which often imposes unexpected costs on leaseholders. Key reforms include:

Abolishing the Two-Year Rule: Leaseholders will no longer need to wait two years before purchasing their freehold or extending their lease.

Right to Manage: More homeowners in mixed-use buildings will gain the right to manage their properties, and leaseholders won't be liable for their freeholder's costs in most cases.

Transition to Commonhold: A new Leasehold and Commonhold Reform Bill will be introduced in late 2025, paving the way for a modern commonhold system. This will grant flat owners full ownership while establishing a collective association to manage shared areas.

Stamp duty changes

New rules for Stamp Duty Land Tax will also take effect:

Increased Rates for Second Homes: Starting October 31, 2025, the additional stamp duty rate for second-home buyers and landlords will rise from 3% to 5% for properties priced between £40,000 and £250,000.

First-Time Buyer Relief Adjustments: The current exemption for properties priced up to £425,000 will end on March 31, 2025. From April 1, the threshold will drop to £300,000. First-time buyers will pay 5% stamp duty on properties priced between £300,001 and £500,000. Relief will not apply to properties exceeding £500,000.

What this means for you

These changes aim to create a fairer housing market for tenants and property owners alike. Renters will benefit from greater stability and protection, while leaseholders can expect a more transparent and equitable system. However, buyers and landlords should prepare for higher costs and stricter regulations.

Stay informed about these reforms to understand how they may impact your rights and responsibilities in 2025.